IDE Group says it took positive steps to stabilise the business in 2019 despite seeing revenue plummet.
The firm reported sales of £28.2m for the year ending December 2019, down 31.5 per cent.
But gross revenue margin improved from 16.1 per cent to 22.8 per cent, which IDE said is proof that its drastic turnaround plan is working.
Non-exec chairman Andy Parker said: This year has been pivotal for the Group, and whilst we saw a significant drop in revenues, we saw an increase in adjusted EBITDA.
"This confirms that the cost reductions and rationalisation of loss-making business has moved the Group to a better trading position from which to now grow.
"After a period of consolidation and reflection we have embarked on a course for long term growth that will capitalise on our strengths and develop propositions that meet client needs."
He added that the firm is seeing increased demand for its service around datacentre, cloud and connectivity.
However the firm added that it has lost some key customers throughout the transition.
But a 50 per cent cut in overheads to £5.3m moved the firm to adjusted EBITDA profit of £1.1m.
IDE added that the COVID-19 pandemic has had "no material effect" on the trading of the business so far.
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Gross margin climbs as new exec team continue turnaround plan