Shares in Unitech Plc jumped 8% to 391 pence at news that its profits more than doubled. The Reading, Berkshire electronic components and controls manufacturer saw pre-tax profits leap 114.1% to ú15.8m on turnover up 19.5% to ú172.7m. The group’s largest division, power supplies, is a world leader and its pre-tax profits increased substantially, rising by 93% to ú14.2m. The group’s Japanese subsidiary, Nemic-Lambda deserves special mention, if only because it escaped the ravages of the Kobe earthquake unscathed, the company helpfully explaining that it is located elsewhere in Japan. It achieved a 65% increase in profits from sales that were up 17%. Unitech’s recent US acquisition, Advanced Analog Inc (CI No 2,468) has performed up to expectations, contributing pre-tax profits of ú1.2m on sales of ú5.8m. The rest of the US operation saw pre-tax profits up 55% from a 14% increase in sales. The European power supply market proved equally lucrative. The connectors division, which supplies products for connecting and testing electronic components, moved in to the black, reporting pre-tax profits of ú1.0m, up from a ú900,000 loss last time. Unitech’s control products division provided the only real disappointment, with its profits failing to match a strong first half. Profits before tax fell by 11% to ú2.5m, despite a modest 5% increase in sales. This was largely due to Erie in the US, which was unable to maintain momentum from a strong first quarter last year when it enjoyed particularly large sales to China. The directors proposes a 15% rise in the interim dividend to 2.57 pence per share.
