The Kirkcaldy-based Paywizard Group, the software developer specialising in subscriber management for Pay TV, turned a £6 million loss into a pre-tax profit of almost £3.6 million last year.
The turnaround was due to an exceptional payment of £8.7m for the conversion of loan notes to share capital.
The group, which provides Software-as-a-Service (SaaS) subscriber management for the entertainment market, has recently undergone a reorganisation and last year reduced its workforce from 317 to 243.
Co-founder Ronald Millar said that following a refinancing there have been significant advances in re-branding and marketing to grow internationally in target markets.
He expected the marketing efforts will result in significant growth in 2016 and beyond.
Turnover for the year to December 2015 was down 14% at £6.7m, which Mr Millar said reflected a reduction in the services and growth in SaaS businesses.
Gross profit margins were maintained at 73% and administrative expenses increased by 7% as a result of recruitment and marketing expenditure.
Mr Millar added: “Following this year’s funding there has been significant input into international marketing efforts and enhancing the sales and marketing teams.
“It is expected that these efforts will result in increased client numbers over the next few years.”
The group derives the majority of its revenue from a small number of customers but Mr Millar said it maintains a close relationship with all customers to continually meet and respond to their requirements.
The subscription management industry is characterised by rapid change, changing customer requirements and new technologies.
Mr Millar said the group monitors developments and puts in place systems and talent to continually develop its product and service offering.
The group’s e-wallet subsidiary Paywizard plc, reported a loss of £25,718 for 2015 from the previous year’s pre-tax profit of £142,324.
Last year all non e-wallet turnover was moved to the parent group, with Paywizard plc focusing on its digital e-wallet service used mainly by a single customer.
