Operating EBIDTA jumped by 54% to £2.3m in the six months to 30 September.

The results also marked the first time that the Manchester-headquartered PLC's acquisitions accounted for the lion’s share of revenue, at £5.5m.

However, like-for-like sales were down 8% due to “an expected decline in the lower margin, non-recurring revenue within our Nettl Systems business, following a turbulent previous financial year”.

Software Systems’ acquisition focus is on vertical market software businesses with recurring revenues.

Following the £1.8m sale of the Printing.com domain name and taking into account £2.2m in amortisation charges on intangible assets, the group was back in the black at the operating level, posting a £1.4m operating profit compared with a £1.6m loss the prior year.

At the end of last month Software Circle also restructured its balance sheet and agreed a new £16.7m facility with Shawbrook Bank. £6.7m was used to redeem bonds of that value, with the remainder earmarked for more buys.