Alpharooms.com owner Alpha International Accommodation increased turnover by 15% to £12.3 million during its last financial year.

The bed bank made a higher level of commission and margin – up from 11.6% to 14% year-on-year - despite total transaction value (TTV) falling by 4.5% to £87.8 million for the year ending in September 2015, according to accounts filed at Companies House.

Alpha International made an operating loss of £237,000 for the year, compared with a profit of £170,000 in 2014, as distribution costs and administration expenses both increased. However, tax gains pushed the firm to an overall profit of £17,000, down from £268,000 in the prior year.

Alpharooms is one of the companies challenging HMRC over the payment of VAT through the tour operators’ margin scheme (Toms) after MedHotels won its case against the tax authority in the UK Supreme Court in 2014. It has not disclosed how much it is hoping to recoup.

The firm has also just launched its Betabeds accommodation-only website for agents as part of its growth strategy.

Director Jacky Bedlow said in the report: “UK market conditions are expected to remain challenging, but the group will continue to provide travel components to existing and new destinations.”

She added that Betabeds “provides a new route to market and is expected to contribute significant growth to the group”.