Job cuts and contract wins have helped digital security pass specialist Intercede overturn years of multi-million pound losses.
The Leicestershire business, which designs security clearance systems for major employers around the world, has also seen a 10 per cent growth in turnover in the last year.
The hi-tech firm, based in Lutterworth, said revenues were 拢10.1 million for the year to March 31, compared to 拢9.2 million a year earlier.
That was put down to bringing in new customers and successfully 鈥渦pselling鈥 to existing customers.
During the year Intercede also launched a cost-cutting review which, along with the increased revenues and a 26% reduction in operating expenses, generated an operating profit of 拢20,000 compared to a loss of 拢4.5 million the previous year.
Under new chief executive Klaas van der Leest the number of staff and contractors dropped from 98 to 79 in the year.
It means the business returned to profitability a year earlier than outlined by the board in its 2018 results.
Cash balances were also up by almost 拢1 million to 拢3.2 million.
Shares in the business were up 8 per cent on Wednesday lunchtime at 40p, having risen from around 16p at the end of March.
The company provides staff security clearance systems for clients including the US Department of Homeland Security, Boeing, Wells Fargo, Deutsche Telekom, Kuwait Public Authority for Civil Information, Airbus, the US Nuclear Regulatory Commission, Lockheed Martin and the 海角视频 Ministry of Defence.
Preliminary results for the financial year showed that while North America continued to be the group鈥檚 biggest market, it sold its MyID system to a customer in SE Asia for the first time.
MyID helps big companies and government bodies manage security passes using mobile devices.
Company chairman Chuck Pol said: 鈥淚ntercede has undergone a challenging period resulting in the board making transformational changes to ensure a return to revenue growth and profitability.
鈥淚 am pleased to announce that the group is reporting performance that is ahead of market expectations by returning to profit a year earlier than expected.
鈥淭his represents a significant turnaround from the losses incurred in recent years and I would like to thank all Intercede staff across the group for their hard work and dedication throughout the year.
鈥淢yID is trusted within government circles and amongst some of the world鈥檚 largest security sensitive organizations and will continue to generate opportunities for growth and improving financial performance.
鈥淭he new leadership team will make employees, customers and shareholders their priority and I am confident of the group鈥檚 future prospects鈥
New chief executive Klaas van der Leest聽 was appointed in April 2018 to return Intercede to profit and 鈥渞ebuild value for shareholders鈥.
He said: 鈥 With this in mind, the business was restructured to ensure a clear focus on the core product and staff as well as customers and partners.
鈥淭he restoration of value needed to start with a 鈥渂ack to basics鈥 approach.
鈥淚ntercede has been successful for many years in following a strategy of building MyID as a highly configurable platform that integrates with a broad range of third-party technologies to make up a highly secure digital identity ecosystem.
鈥淭his niche focused strategy has allowed us to build market leading positions in a number of very attractive market segments where we enjoy the benefits of delivering differentiated products and services that have tangible and lasting value.
鈥淭his includes aerospace and defence contractors and governments who understand that replacing passwords with strong two-factor authentication is the single most effective way for an organisation to protect themselves against the number one cause of data breach ie weak or compromised user credentials."
Just 3 per cent of the company鈥檚 turnover comes from the 海角视频, with around 17 per cent from Europe, 69 per cent from the US and 11 per cent from the rest of the world.
Intercede warned that global issues such as Brexit, the US-China trade dispute and Italian banking crisis could impact future trading, but said that was partly mitigated by the long term nature of its customer relationships and the diversification of operating in multiple markets.
Intercede founder Richard Parris left his role as a non-executive director last December.
