CFH's remarkable increase in profitability came on the back of virtually flat revenues of £26.8m, compared with £26.5m the previous year.

The Radstock-based company attributed its success to changes in the way it has done business, which it said had helped make the company more cost effective, and even allowed it to pass savings on to customers.

According to CFH's managing director Dave Broadway the company could have recorded an even higher turnover had it not become a downstream mail provider.

He said: "If we had done things the same as last year we would have seen a higher increase in turnover by around £1m. We now deliver a more efficient service for our customers - their costs are lower, as are ours."

Other reasons for the company's improvement include a host of contracts wins, such as City & Guilds, Derby City Council and the North Eastern Purchasing Organisation.

Broadway said: "Our current sales pipeline shows wins of over £2m value added per annum over the last 12 months, with total contract value added of over £6m. We have been successful in securing a number of notable contracts from both public and private sector organisations."