The upsurge at Mediazest (LON:MDZ) was evident in the media and audio visual installer's half-year results, as the company returned to the black.
Having put in a first good half, the company is confident the progress will continue for the remainder of the financial year.
Mediazest said it is increasingly being asked to pitch on longer term projects with the potential to generate substantial revenues over many months, and it is continuing to build its pipeline along with a strong client base.
The group reported positive earnings before interest, tax, depreciation and amortisation (EBITDA) for the first time, edging into the black in the six months to 30 September by £8,000, having racked up a loss of £180,000 in the same period of 2014.
Unfortunately, the ITDA part of EBITDA meant the company made a pre-tax loss of £75,000, but this was a marked improvement on the £235,000 loss the year before, while the post-tax loss narrowed to £60,000 from £203,000.
Revenue in the period was up 1.6% at £1.60mln from £1.58mln the previous year.
The group's Retail sector (including Automotive Retail) generated over £900,000 through multiple store deployments across the UK and Europe.
The Corporate sector generated almost £450,000 of revenue with a large number of clients including Pfizer, Churchill Retirement Living and Virgin Active.
Education provided a smaller proportion of income, generating around £250,000 of revenue.
In the reporting period a significant improvement was achieved in the gross profit margin, which increased from 33.4% in the prior period to 38.5%.
This increase is as a result of the board’s ongoing strategy of focusing on providing a full service offering to the client base. As well as equipment sales and installation fees, new business efforts are currently targeted towards providing ongoing managed services that include maintenance, content management and data analytics.
“Whilst improvements in recurring revenue streams have helped with visibility of income, work still remains in this area to improve quality of revenues. The board is optimistic about 2016; however, visibility for the next calendar year is unpredictable at this stage and as such, careful control on administrative costs will continue,” said Lance O'Neill, chairman of Mediazest.
The shares were up 5.0% at 0.21p in mid-morning trading.