Zonal Retail Data Systems, the UK's leading manufacturer of electronic point-of-sale systems for the hospitality industry, moved out of the red and into profit last year.

In accounts filed with Companies House, the Edinburgh-based firm that is owned by the McLean family reported a profit on ordinary activities after interest and taxes of £794,405 for the year ended June 30, 2007, compared with a loss of £126,360 in the previous period. Pre-tax profit for 2007 came in at £1.3m, up from a loss of £92,906 in 2006.

The firm, which was founded in 1979, lifted turnover by 35% to £17.03m from £12.6m in 2006.

In a statement filed along with the accounts, the directors said: "The uncertainty in consolidation of the hospitality industry has been a common theme this year and looks likely to continue. Against this background, we are pleased to report that we are now benefiting from plans put in place in previous years which have resulted in a strong performance in all areas of the business."

The group's directors, who recommended that no dividend be paid, received higher pay and other benefits in 2007. Remuneration rose to £661,952 from £473,160 in 2006.

Staff numbers were also up slightly - 220 people were employed by the firm in 2007 compared with 200 in the previous period.