The company's turnover remained stable at £4.3m this year, compared to £4.4m in 2010. The profit boost is compared to a loss of the same amount in 2010.
Sledge chief executive Nic Cooper, who bought back Sledge in December, told C&IT that he predicts that profits will double in 2012 as a result of Olympic business.
"The Olympics will be a big boost to all the major agencies, but the real test will come in 2013. I'm an optimistic man, but with the problems in America and parts of Europe I think agencies will have to be cautious and adapt," he said.
Cooper went on to attribute Sledge's success to chasing business more tactically.
"It's now about selecting the business we go for more carefully. For instance we wouldn’t tend to go for a pitch where ten agencies are competing for the same work or if a company asks for unrealistic prices," he added.
In July Sledge appointed an account executive to work on its O2 contract. It recently moved to new offices from Camden to Shepherds Bush.