Circle Express has continued to trade successfully under a Company Voluntary Arrangement (CVA), achieving its second consecutive profitable year.

The company's latest results lodged at Companies House show the express distribution service made sales of £28.8m in the year ending 31 October 2014, an increase of £2m on the previous year.

Pre-tax profits were also up, to almost £193,000 compared with £134,000 in 2013.

The company entered a CVA in May 2012 following “extremely difficult trading conditions” during 2011 and the first half of 2012.

It meant that creditors within the agreement would be settled at a rate of £0.38p per £1 over five years.

Circle Express returned to profit in 2013 and its latest report stated that it had made every payment due under the CVA on time.

“The directors are confident that in the future the company can continue moving forward in this positive direction,” the report said.

“[We] have prepared detailed cash flow and profit and loss forecasts which show that the company should continue to be profitable in the 12 months to October 2015.”

Circle Express CEO Chris Coffey previously told sister title Commercial Motor that the business had received “tremendous support” from clients and suppliers, following its CVA.

Coffey was not immediately available to comment as this article was published.