VTech Holdings Ltd, domiciled in Hong Kong, with offices all round the world and quoted on the London Stock Exchange, has reported a sturdy set of results for the year to March 31. Net profits for the period jumped 89% to the equivalent of $32.5m, w hich includes a $200,000 exceptional charge from the sale of a subsidiary and $130,000 exceptional gain from the sale of investments. Revenue rose 9% to $688m. The company said it was able to maintain a strong market leadership within the expanding electronic games sector. The US remained the firm’s biggest market, but during the fiscal it was the European revenues that produced the greatest increase. The telecommunications business performed well, with increased sales of VTech’s own brand 90 0MHz cordless telephones in the US, which the company attributed to increased penetration of retail outlets. Sales of private label products increased and the firm has launched a pan-European cordless telephone. In December VTech won a contract as part of a joint venture to manufacture and distribution cable television set-top decoders. In personal computer products, VTech said it had secured more stable margins by the sale of components and bare-bone systems, thereby minimizing the risks in price fluctuation. The Dongguan, Hong kong factory is now up and running at full capacity, so VTech said a new plant in Liaobu, Dongguan will be completed by summer 1997. Future expansion will be via the introduction of new product lines of innovative and high value products. The electronic dictionary products are expected to record a growth this year, along with the introduction of different language models, and VTech said it intends to maintain its dominant market leadership well into the next century. The directors have proposed a one-for-five bonus share issue of ordinary shares and a final dividend of $0.06 brings the total for the year to $0.08, a 100% increase on last time.