Operating profitability rose to £8.1m representing a 12% increase compared with first half of last year, and a 17% increase compared with the second half of last year.
With the results marking a return to double-digit operating margins at 10.6%, Incepta said the results represented significant improvement compared with both halves of 2003, following the period of stabilisation Incepta experienced last year.
The growth has been fuelled by new-client wins and projects across all divisions, including Incepta Marketing Intelligence, which counted Dell, McVities, Hay Group, Thistle Hotels, TNT, Bulldog and Gallagher among new business.
Its marketing services division, which houses Incepta Marketing Intelligence, saw gross income increase by 8% to £31.5m. Incepta said it expects operating margins to strengthen in the second half of the year as a result of the recovery as it continues to benefit from the increase in overall marketing spend.
Richard Nichols, chief executive of Incepta Group, said: "The half year marks a return to underlying growth for revenues and, more markedly, improved profitability. Market conditions have improved during the period and overall our businesses have reflected this. Revenue visibility is showing signs of modest improvement and the return to profit growth is now under way.
"We remain confident that going forward, as long as market conditions continue the improvement seen in the first half, we will be able to maintain this momentum given our strong market positions and the inherent operational leverage in our businesses."
Longer term Incepta said that it expected to benefit from its positioning in below-the-line activities, including market research, direct and promotional marketing, as client spend continues to migrate away from traditional consumer advertising.
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