Merit Group PLC on Wednesday touted an optimistic outlook, boosted by cost reductions, as it reported a widened loss in its recent financial year.

The London-based data technology company said its pretax loss in the year that ended March 31 widened to £3.7 million from £1.7 million the year before.

Revenue grew 5.6% to £18.6 million from £17.6 million, but cost of sales jumped 15% to £10.0 million from £8.7 million.

The company proposed no dividend, unchanged from financial 2022.

Looking ahead, Merit said it successfully completed its restructuring and is ‘in a much stronger position’ now, citing less complexity and a clear strategy for growth, supported by investment in its core businesses. It added that it made a good start to financial 2024, amid a ‘significant’ cost reduction from the disposal of its London office lease.

Merit said it expects growth in revenue and improved profitability in the current financial year and beyond.

Merit shares were 5.9% higher at 45.00 pence each in London on Wednesday afternoon.

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