While total revenue stood at £8.84m, up from £8.74 the year previous, the company's revenue outside the property sector was up 26%.

Nicholas Green, joint chief executive of Tangent Communications, said: "While our exposure to the property sector has reduced short-term profits, in the other parts of our business sales grew by 26%."

He said Tangent has £2.3m in net cash and was "better positioned today" because of the changes made in the first half-year. In the long term, he added, the company would "benefit from the opportunities that will arise".

During the first half of 2008, Tangent reorganised its business into five brands: Tangent Direct; Ravensworth; Tangent One; T/OD (Tangent On Demand); and Tangent Labs.

Tangent's like-for-like revenues within the property sector, handled by its Ravensworth direct marketing business, dropped 32% against the same period last year, declining 21% and 43% in respective quarters.

The company said in a statement, that the drop in revenue had "affected not just the top line but also the group margin".

Elsewhere, underlying operating profit was down 28% to £1.01m from £1.41m in 2007, while underlying operating margin stood at 11.4%.

"All of our businesses traded profitably during the first half and generated positive cash flow," Green added.