Shares in Leamington Spa-based Focus Solutions have soared following its announcement of a hike in pretax profits.
Focus Solutions, which supplies enterprise solutions to the financial services industry, posted a 35 per cent jump in full-year pretax profit for the year to 31 March.
The group announced a pretax profit of £1.4 million for the period, up from £1.04 million in the previous year.
Sales revenue rose nine per cent to £8.6 million.
The Aim-listed company’s shares closed at following the announcement.
Focus Solutions chief executive Richard Stevenson said: “We have taken a further step forward over the past year.
“These results are testament to the improvements made by the business and to the efforts of all our employees.
“We look forward to continuing to execute the established strategy and to continue to develop a successful, consistently growing, profitable and cash generative business.”
Mr Stevenson added the new financial year had started well and trading was in line with management expectations.
Focus Solutions said its growth was driven principally through services provided to HSBC Bank as well as a combination of new projects for both new clients and its established customer base.
But the company said uncertainty in the financial markets had an impact on demand for part of the year.
“However, the impact was short-lived and the underlying requirement for our customer base to comply with regulatory requirements at all times, irrespective of short term market conditions, ensured that there was no sustained impact on our performance,” the company said.
Focus Solutions last year won significant new contracts with AEGON Scottish Equitable, Openwork, HSBC Bank and TietoEnator and it added it had started work on a number of other projects with new customers since the year end.
The group said it had strengthened relationships with existing clients last year, including HSBC Bank and Lincoln Financial Group, adding it had made significant progress via partnerships with Unisys and TietoEnator.
The group also secured its first customers last year following the launch of its focus:360° “whole of office” product.
Focus:360° is a modular solution that provides financial advisers with an agile whole-of-market, multi-channel technology platform based on Microsoft technology.
“This development programme is a significant investment for the group and when completed will give Focus the leading end-to-end solution in the market.
“We expect focus:360° to deliver further strong organic growth at attractive margins,” the company said.
Focus Solutions also said it had started the process of applying to the court for the cancellation of its share premium account, which will in turn make it possible to pay a dividend.
“It remains our intention to pay a dividend once this process is completed,” the company said.
The group said it aimed to increase the proportion of its turnover represented by annually recurring revenues over the next two to three years.
It also intends to increase its penetration in both the life and pensions and mortgage markets.
In February Focus Solutions signed a £765,000 contract with HSBC to design and build the second phase of a programme to support the bank’s wealth management strategy.
The company is already developing phase one of the system to support HSBC’s distribution channels for life, pensions and investment products.
Focus Solutions was established 1995 and listed on the Aim market in 2000.
Its customers includes major financial services institutions with thousands of licensed users, including bancassurers, life and pensions product providers, mortgage lenders and major intermediary firms.