PROFITS at Manchester-based technology firm ANS Group more than doubled to £1.4m last year as revenues surpassed £10m for the first time.

The IT services company, which is listed on the PLUS market for smaller businesses, was boosted by strong organic growth and an eight-month contribution from RSS Web, which it acquired last autumn.

Group turnover during the 12 months to March 31 shot up 64 per cent, from £6.3m to £10.29m, and pre-tax profits rocketed from £634,000 to £1.4m.

Chairman Scott Fletcher, a former child actor and cockle seller who founded ANS Group in 1996 at the age of 22, hailed an `excellent year of growth' and said he was eyeing further takeovers.

The firm has more cash than this time last year - reserves are up from £1.69m to £2.2m - to strengthen its acquisition aims.

"Even though we acknowledge that there is a slowdown in the economy generally, and that business has become more difficult to close, the group is operating in growth areas and has a large public sector client base," he said.

Customers were focusing on making efficiencies to reduce costs, and ANS Group's technology would help, he said.

Mr Fletcher added: "Given the level of the group's cash reserves, and with valuations of businesses being depressed, we see the next 12 months as an ideal opportunity to investigate further acquisitions."

ANS Group, which is based at Manchester Science Park, will pay a final dividend of 2.75p, making a total of 4p for the year.

Mr Fletcher, who earlier this week was named north west entrepreneur of the year in the 2008 National Business Awards, said it was the seventh year in a row that the group's financial performance had improved. Shares in ANS Group, whose clients include Debenhams, BUPA, ACAS, Interserve and United Biscuits, gained 1p to 112.5p, valuing the business at £13.5m.

Last autumn, ANS Group hived off software development firm Smart Identity and floated it separately on PLUS.

Smart Identity posted profits of £107,378 on turnover of £421,425 for the year. Its shares were unchanged at 28p, giving it a market capitalisation of £3.5m.