Healthcare focused strategic marketing group Cello's revenues rose 5.0% to £80.9m in the six months to the end of June.
Gross profit rose by 4.0% to £43.5m with like-for-like gross profit growth of 2.7%.
Headline profit before tax was unchanged at £4.2m and headline operating margins slipped to 10.2% from 10.5%.
The group posts a statutory operating loss of £0.8m (2015: profit of £1.9m) after additional provision for VAT of £2.1m (2015: £1.1m). The statutory basic loss per share was 1.08p (2015: earnings of 1.18p).
Net debt reduced to £4.8m (June 2015: £9.8m).
Chief executive Mark Scott said: "Following the resolution of the long standing VAT dispute with HMRC, the group is energetically pursuing its growth ambitions, supported by a strong balance sheet.
"Cello Health has the potential to become a global leader in the growing healthcare advisory services space and rapid progress is being made towards this goal.
"Cello Signal's potential as a powerful growth and profit engine for the Group in the digital solutions space is now also taking shape. Overall, the Group is well placed to fulfil its growth ambitions."