High performance digital camera developer Andor Technology grew its interim profits by 22%.
Pre-tax profits increased from £657,000 to £803,000 on turnover 10% higher at £11.5m in the six months to March 2008. Net cash was £821,000 at the end of March.
Even though research and development spending increased from £838,000 to £1.29m Andor managed to improve its operating margin from 6.8% to 7.1%.
Sales to the scientific research sector account for 70% of the total. Growth came from bio-imaging uses in Europe as well as increased demand in China and Japan. The US was flat.
It is taking time to build up sales to equipment manufacturers which include Andor’s cameras in their products. Andor is keen to increase the proportion of sales coming from this area but it wasn’t helped by one European customer undergoing a transition between products. A design contract for the security sector should yield product sales between 2009 and 2011.
House broker Landsbanki is maintaining its full year profits forecast of £1.4m, against £1.28m in 2006-07. That suggests a flat second half. Andor is exposed to the dollar and Landsbanki believes that increased research and development spending will benefit the group over the longer-term.
The shares were unchanged at 46.25p, valuing Andor, which is quoted on AIM and IEX, at £12.4m.
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