At the company's AGM yesterday, Tangent said it was encouraged by the development of new business areas into which it was expanding.

Its digital business Tangent One performed "particularly well" due to additional revenue from existing clients and new contract wins with Boots and RIBA.

Chairman Piers Caldecote said the integration of Lateral after its acquisition in March 2009, had also contributed to the company's strong performance to date.

Additionally, the number of estate agents' branches using the Tangent Direct division system increased by 37% in the past seven months.

Following the purchase of the software and goodwill of failed digital printer VLM in April 2009, Tangent said the integration of its client base had "gone well", and that it is making a profitable contribution.

Chief executive Nick Green said: "We are pleased to report that we are ahead of expectations for our business performance.

"While our outlook still has to be cautious, there are certainly more positive signs out there. We are starting to see the early signs of recovery in some sectors."

Tangent has also made application for 300,000 ordinary shares of 1p each, to be admitted to trading on AIM as the result of an option granted under Tangent's EMI Share Option Scheme.

Admission of the shares to trade on AIM is expected to become effective at 8am on Friday (31 July).