The group said its strategy of reducing exposure to high-volume, low-margin wholesale distribution business was seeing continuing success.

Gross profit from direct sales and the group's enhanced Business Partner Programme was up 26% to £10.1m, increasing overall margin from 30% to 48% ahead of expectations.

EBITDA before impairment of the group's initial investment in Broca plc was up 21% to £5.0m.

2ergo said it had seen its first profits from the Americas region and was expanding into Asia and Australia while broadening its product set through acquisitions.

During the period it completed the buy-back of 1m shares at a cost of £1.4m. The group had cash reserves of £6.4m at the year end and was debt-free.

Story provided by Business Financial Newswire