Reference book company Andromeda Oxford has announced an upbeat report on its fortunes.

The Abingdon-based firm was rescued three years ago by City investors after running into financial difficulties.

Last year the company was bought by Medi@Invest, which raised £10.4m on the stock market to fund the deal.

Andromeda was set up in the 1980s to publish reference books and encyclopaedias. It now provides book content and design for other publishers including Grolier, Oxford University Press and Macmillan.

Andromeda Holdings, which owns Andromeda Oxford and children's novelty book specialist Pinwheel, said combined earnings before interest and tax were £334,000 on sales of £6m during the 15 months to the end of March.

Sales at Andromeda were £4.5m while Pinwheel sales reached £1.5m.

Andromeda managing director David Holyoak said: "We are rebuilding the business and the investment has started to pay off."

Andromeda's sister company, Andromeda Interactive, was bought by design company Touchpaper in June 1998 and moved to Touchpaper's head office at Park Crescent, Abingdon.

The company publishes CD-Roms, including Terra Forma Map Generator, which provides maps of the world.