Touchstar shares soared 35% on Wednesday after the group posted a trading update for the year ended 31 December 2020.
Cash generation remained strong and the group ended 2020 with a net cash position of £1.6m with £1.9m of cash in the bank at the year-end. This is up from £850,000 in 2019.
Preliminary results for 2020 will be reported in late April 2021 and Touchstar has said that it expects a profitable outcome on both a pre-tax and after- tax basis.
Chairman, Ian Martin, commented: “I am delighted to confirm that for the year ended 31st December 2020 Touchstar traded profitably, was strongly cash generative, supported customers and most importantly looked after staff in a period of a global pandemic and the largest economic contraction in a generation.
“Enormous credit should go to the management team for having the foresight to realise early on the implications of COVID 19 on society and the economy. It is their timely actions that have enabled us to give a clear and consistent message throughout this crisis to all our employees, customers and shareholders, bringing a degree of calmness to an uncertain time.
“The cautious approach that has served us so well is retained. Our focus remains on supporting customers, cash and the wellbeing of our employees. We continue to not only keep to but exceed the goals in the roadmap we put in place to navigate the business through into 2022,” he added.