Leamington Spa-based Focus Solutions, a provider of specialist software mainly for financial services, has completed its second year in the black, helped by demand from organisations becoming regulated for the first time by the Financial Services Authority.
The mortgage market, regulated in November, 2004, contributed revenues of £2 million in the year to March, 2006, some 30 per cent of Focus Solutions' turnover. West Bromwich Building Society was among the first new customers.
Profits of £128,000, after reorganisation costs of £257,000, were up from £26,000 the year before, although an increasing shift towards professional services lowered margins overall.
Although Focus Solutions is un-borrowed there is still no dividend.
Richard Stevenson, who succeeded John Streets as chief executive in March, commented: "The board's primary objective is to provide the resources necessary for the business to grow and to create a business of sustained profitability.
"In the long term this represents the best opportunity for return on investment.
"Accordingly we have no plans to pay a dividend in the near future."
The AIM-listed shares slipped 1p to a 12-month low of 141/4p.
Mr Streets, who founded the company, remains on the board as a non-executive director. Chairman Alastair Taylor said "The majority of the growth has been generated from our core UK financial services market.
"Our strategy to grow revenues outside of the UK financial services market has generated some initial sales although progress has been slower than we would have liked."
Following two successive years of profitable trading, the board is now seeking to accelerate the growth in its business by a combination of partnerships, joint ventures and, potentially, acquisitions," he added.
Mr Stevenson said cash deposits of £100,000 at the year-end were down from £1 million the year before because of agreements to defer payments by major clients.
But the company has bank facilities for £350,000 and is debt-free, he stressed.
A project reviewing outsourcing some "service delivery capability" to India has been abandoned as "inappropriate".