Annual sales at the software group are up just 1 per cent

Operating profits at software and services group Civica jumped 16 per cent to £21.6m this year, up from £18.5m in 2006.

Revenue rose just 1 per cent to £126.9m, an increase of less than £2m from the previous year.

"This has been another year of good progress for Civica both in the UK and internationally, supported by strong profits growth and cash generation," said chief executive Simon Downing.

"Our strategy of focusing on owned software and associated services has continued to deliver improvement in operating margins during the period."