Merit Group PLC on Tuesday said it narrowed its annual loss through strict cost control measures and increased revenue, and it is ‘well positioned’ to build on the improvements made.

The London-based, data technology company reported an 11% increase in revenue to £27.4 million for the year ended March 31, from £24.7 million the prior year, with growth driven by stronger markets.

In particular, the company’s marketing data business had a strong rebound as the events industry began to return to pre-pandemic operations and refresh its marketing database.

Also, Merit said it experienced high levels of subscription and recurring revenue from its Dods Political Intelligence and data & technology businesses.

Merit narrowed its pretax loss to £1.9 million from £3.1 million the year before, due to cost control measures. Additionally, the gross profit margin increased to 39.6% from 33.6% the prior year.

In order to improve cash position and aid recovery, Merit announced the disposal of its 30% minority interest in media company, Social360 Ltd for £420,000 in cash.

Merit declared no dividend, in line with the year.

Looking ahead, despite inflation, labour shortages, supply chain issues and other drivers of uncertainty, Merit said it is ‘well positioned to build on the improvement achieved in the last year’, with another year of progress anticipated.

Chair Mark Smith said: ‘The group is in much better shape than it has been for some time. The new management team are getting on with the job of addressing the issues that have impacted performance and are implementing the revised strategy that the board has every confidence will deliver improvements in shareholder returns.’

Shares in Merit Group were up 5.8% at 40.75 pence in London on Tuesday.

Copyright 2022 Alliance News Limited. All Rights Reserved.