Coventry-based Education Development International is back into the black after streamlining its back office and acquiring the Joint Examining Board.

The business, which provides educational qualifications and assessment services, announced pretax profit of #1.33 million, up from a loss of #61,000 the year earlier.

This was on sales up #1 million to #14.2 million for the year ended September 30. The company also recommended a maiden dividend of 0.2 pence.

Chief executive Nigel Snook said he was delighted by the result and, in particular, the offering of a dividend.

He said: "I think from our point of view the most pleasing thing is that we have issued a maiden dividend payment.

Mr Snook added that the company underwent a shake-up of its office systems and was now clear to focus its efforts on marketing its products.

He said: "Our priorities over the past year have been to complete our organisation and systems development projects, and to move the focus of our attention on to market centred service and business development activities.

In a statement EDI said the biggest area of growth had been in the UK National Vocational Qualification market, which saw sales of #6.74 million – up from #5.91 million in 2005.

This was, in part, due to revenue from the acquisition of the Joint Examining Board (JEB) which contributed #122,000 during the second half of the year.

EDI added that the integration of the JEB operation has been relatively straightforward and the small JEB office, which had two staff, was wound-up at the end of September.

In response to the CBI's recent criticism of vocational qualifications in the UK, Mr Snook said EDI would welcome the opportunity to work closer with employers.

He said: "Of course we would welcome greater input from employers on government skills councils."

Sales of international qualifications for the year rose by 3.3 per cent to #5.28 million – a figure that EDI said had been reduced by the impact of the currency crisis in Zimbabwe.

In South East Asia sales were up by six per cent with particularly strong growth in Hong Kong.

But EDI warned that markets in Malaysia and Singapore were still fragile.

Sales in Germany were affected by weak economic conditions but saw overall growth for the year of three per cent. Looking forward, Mr Snook said he expected good prospects for organic growth in the next financial year. Shares were up 1.25p at 16.5p.