Pre-tax profits at D4t4 Solutions rose by 31.7% to £4.24m in the year to the end of March.
Total revenues were up 5% at £17.67m and adjusted pre-tax profits rose by 20.6% to £4.22m.
Adjusted earnings per share rose by 21.0% to 9.97p and the group has declared a dividend of 2.25p - up 12.5%.
Chairman Peter Simmonds said: "During the last twelve months, we have seen a shift in the mix of sales within the Group, with a growth in higher margin licence software sales making a major contribution to the overall profitability of D4t4.
"Licence new sales have increased due to expansion of our salesforce and continued growth in partners.
"This, combined with the continued development of our business to the more profitable Analytics projects and associated Recurring revenues has assisted in delivering the overall strong Group profit growth.
"Delivery against our group's strategy remains on course and, this combined with the current revenue visibility, order book and pipeline of opportunities all bode well for the future.
"As a result, the board remains confident in achieving the current management expectations for the financial year 2017/2018 and in the long-term prospects for the group."