The PR agency group, headquartered in Cardiff, saw a 46 per cent rise in sales from £6.54m in 2007 to £9.52m. Revenue went up from £4.66m last year to £7.51m this year.
Freshwater also saw a 27 per cent increase in profit before income tax.
Steve Howell, chief executive, said: ‘Trading in the fourth quarter of 2007/8 was strong but overall the first quarter of 2008/9 is expected to be disappointing as a result of the economic downturn.'
The agency employs 115 staff but this figure is expected to go down to 106 by February, reflecting the agency's decision not to replace staff that will leave.