Ultimate Finance is back in the black, with the number of companies approaching its Birmingham office for invoice discounting and factoring facilities up by a third.
The AIM-listed company, which provides funding and financial management solutions for small to medium sized businesses, said pretax profit for the six months to December was £112,000 for the period, up from a loss of £37,000 a year earlier.
It said invoices assigned in the same period amounted to a record £55.8 million, up from £36.1 million in 2004. Turnover jumped 65 per cent to £1.6 million from £992,000.
Chief executive Brian Sumner said the group's target market offered tremendous growth opportunities.
He added: "We have increased our profits significantly, grown our client base aggressively and have recently opened our northern client service office."
The Bristol-based company plans to use its new northern office in Cheadle to grow its client base across the north of England.
The company also restated last week's announcement that Shane Horsell is to replace outgoing finance director Darren Newman.
Ultimate, which was founded in 2002, said risk management continued to be the primary focus of the business, with the group's clients
offering an "excellent" spread of risk in terms of size of investment, industry type and geographical location.
The single largest investment at the end of December 2005 was £458,000, which constituted less than four per cent of total funds advanced. The Birmingham office in St Paul's Square, which celebrated is 200th contract in February, saw a 32 per cent rise in companies approaching it for invoice discounting and factoring facilities.
In addition, the group saw a 71 per cent increase in the funding provided across its portfolio from £7 million to £12 million.
Ultimate Finance, which also has offices in Bristol and London, said the rise was a result of cashflow pressures amongst SMEs, particularly in the retail sector.
Peter Stanton, regional director for Birmingham, said: "We are being approached by more and more businesses who are struggling to reach their full potential because of poor cash flow.
"We believe this pressure is set to continue over the next six months, despite the news that interest rates have remained the same for the seventh month running."
Mr Sumner said the future looked positive. "With a growing market to attack, a determined and highly experienced management team focused on growth, I am confident the future is secure."