Diluted EPS was 0.28p against the previous negative 1.87p.

The group finished with net cash of £2.4m, up from £1.5m.

Recurring revenue increased to 66% of total revenues from the previous 50%, with more than 90% of recurring revenue again retained in 2009.

The group said it had seen a strong demand for software offered in the software as a service model (SaaS).

An additional £2.6m of total recurring contract value had been added in the year.

Significant new customer wins included Rank, Carnival Group, The Chartered Institute of Marketers and Liverpool Victoria.

A major partnership was signed with InfoDATA, a leading US marketing service provider. A strategic partnership was also signed with Initiatives et Developments, a leading loyalty marketing service provider in France.

CEO Chris Underhill said, 'With the total number of customers using smartFOCUS to drive customer revenue and retention moving towards 800, the company is starting to be recognised for delivering results by making marketing smarter.

'During 2010, smartFOCUS expects to capitalise on this position with further new products and releases while, at the same time, extending our distribution channels internationally.'

Since the year end, the group had continued to trade in line with management expectations and it was confident of the outlook for the current year.

It planned to review the dividend policy in 2010, as so far the group has not paid a dividend.

Story provided by Business Financial Newswire