The Croydon-based digital printer posted a pre-tax profit of £776,930 for the year to 31 December 2010, up from a pre-tax loss of £693,262 in 2009. Operating profit soared more than 3,400% from £40,147 to £1.4m in the same period.

In the directors' report, managing director David Laybourne said: "This sustained profitability throughout 2010 has enabled the company to create a positive cash position whilst repaying a significant amount of debt.

"Real Digital will further reduce debt throughout 2011. The management team is stable and focused on managing costs and improving efficiencies and productivity."

RDI's strategy has been one of rapid sales growth in its core sectors of transactional, direct mail and point of sale, backed by investment in the latest digital, pre-media and finishing technology.

Whilst this has allowed the firm to expand rapidly to its current turnover of £14m, up 26% on 2009's £11.1m turnover, its profitability has previously been hampered by its high level of debt.

The company has continued to invest in new technology, with a further £721,507 spent on finishing equipment in the past year, and has further multi-stage investment planned to enhance its digital print capability in 2011.

Laybourne said that the company was forecasting turnover and profit growth for all of the coming three years. For more see this week's PrintWeek.