Hasgrove, the Manchester-based digital and communications company, expects to move back into profit after a “much improved” 2012.

In a trading update for the year to December 31, it said turnover should increase from £16.5m to £19.1m, with pre-tax profit hitting £1.4m. Full year figures will follow in April.

The figures would mark a recovery for the company following a pre-tax loss of £3m in 2011.

Hasgrove employs around 260 staff across its three businesses: full service agency Amaze, which has offices in Manchester and Liverpool, design agency The Chase, with Manchester and Preston offices, and Altrincham-based intranet specialists Interact Intranet.

Paul Sanders (pictured), Hasgrove chief executive, said: “2012 was a good year for us. Performance was much improved, due to our focus on efficiencies and better project delivery.

“The level and quality of new business wins so far, combined with our strong revenue pipelines give us continued confidence for the year ahead.”

Hasgrove reported that Amaze had continued to perform strongly and that Interact had benefited from its entry into the US market, but that it had been a “challenging year” for The Chase.