Web hosting and digital recording company, WebCentral Group Limited (ASX:WCG), has recorded a bumper revenue and profits year, with strong growth in both of its main revenue generating businesses.

WebCentral recorded a 219% increase in net profit after tax to $5.0m and a 336% increase in revenue to $58.4m for the 2004-05 financial year. The results reflect the Group's full ownership of WebCentral Pty Limited, which was increased from 49.4% to 100% on 1 July 2004, plus underlying revenue growth of 16%.

In announcing the full year result, WebCentral Group CEO, Andrew Spicer, said: "The first full financial year after the WebCentral acquisition has seen us not only achieve an extremely solid financial result but successfully evolve into a much stronger, more scalable company. The acquisition of the remainder of WebCentral has lifted WebCentral Group to a new level as a technology services company."

The Group's WebCentral Pty Limited division, which specialises in web and application hosting, increased its revenue by 17% to $43.1m for the 2004-05 financial year.

"Our WebCentral division has made a significant contribution to the Group's result this year, achieving a 17% increase in revenue and strong growth in high value managed hosting services for corporate and government clients. WebCentral's experience in managing quality infrastructure and service delivery mechanisms has also seen the company establish a stronghold in the flourishing Application Service Provider industry as a key supplier to companies selling online software applications," Spicer said.

WebCentral's digital recording business FTR Pty Ltd (FTR) increased its revenue by 39% to $15.3m in the 2004-05 financial year. In December 2004, FTR was awarded a new contract initially valued at approximately $7 million to supply recording systems to the US Social Security Administration (SSA). Since the tender was awarded, SSA has increased the order to approximately $7.8m.

"The SSA contract is a validation of FTR's strategy to expand beyond the courtroom market into the public meeting room and hearing room areas. This new business was achieved through FTR leveraging its prestigious General Services Administration (GSA) accreditation, which is a significant purchasing pre-requisite for government organisations in the US," Spicer said.

According to Spicer, the company is now positioned to grow further in 2006 through both of its businesses.

"We have achieved a great result in the first financial year since the WebCentral acquisition, which creates a strong foundation for the company's future. Both of our operating divisions have delivered strong results. WebCentral Pty Limited is expecting increased demand in 2005-06 for its high value managed hosting services, premium email and application hosting solutions and FTR will continue to capitalise on its success with the SSA contract to penetrate new markets such as Europe," Spicer said.

The market appeared to agree with Spicer's assessment. WCG shares were well traded and finished up 10c to close on $1.55.