While profits were down some 25% on 2008's £536,000, assistant managing director Lucy Edwards cited £3m investment in new technology to offer clients broader cross-media applications as the reason behind this, including setting up Howard Hunt Mail which is expected to bring in sales of £6m for the current financial year.

"It has been a tough year for the DM industry, as anyone will tell you, but we're very pleased with our results - that we're still in profit," she said. "It's been a great building year. We've restructured the company and invested over £3m so we can develop and improve our business."

The business picked up a number of contract wins across the year, including Home Retail Group, IPSOS, Vanquis and Tesco Stores.

The company also continued its cost reduction program; net liabilities improved to £7.5m from £7.7m a year prior, and net debt was reduced from £16.5m to £14.2m.

Edwards said that, for 2010, turnover at the company "would not grow significantly, but our profit will grow considerably" and expected to post revenues for the group in the region of £53m.