INDUSTRIAL services group Chieftain yesterday reported strong growth and said it is eyeing up potential acquisition opportunities.

The Newcastle group, which has operations in Teesside and Tyneside, said it is in the process of tendering for a number of large contracts and is well positioned for future growth.

Chieftain reported a solid performance across the majority of its divisions and hinted at significant growth opportunities in the defence sector.

Chief executive Bill Taylor spoke of "exciting times" for the PLC.

"The industrial market place in which we operate offers opportunities for the group to expand further by both organic growth and acquisition," he said.

"The board believes that the group is now well-positioned to deliver solid results year on year with the potential for considerable upside from other opportunities based on our core skills and sectors."

Chieftain yesterday reported a 28 per cent lift in turnover to £21.6m for the six months to June 30, while pre-tax profits jumped 43 per cent to £1.05m, compared to £732,000 in the same period last year.

The group's order book increased by £5m to £60m, while the basic earnings per share increased 43 per cent from 5.76p to 8.25p. Chieftain's operations take in engineering services, fabrication, manpower supply, environmental services and outfitting.

Its engineering division has strengthened over the past year with the acquisition of Stockton-based Bringover Limited, which specialised in the repair and maintenance of engineering machinery, and the purchase of Middlesbrough steel fabrication and engineering services business Kevin Lloyd Limited.

The group subsequently relocated its Teesside engineering services division, R Blackett Charlton, which provides mechanical services to a range of blue-chip process and power plant operators, from Wilton to a site on Skippers Lane Industrial Estate, in Middlesbrough.

Mr Taylor said: "Notwithstanding the considerable progress we have already made, this is an exciting time for Chieftain.

"The engineering business has moved into the second phase of its strategic development and we are tendering for large non-term projects."

Chieftain's outfitting division has also continued to perform well and is actively seeking opportunities in the defence and oil and gas sectors.

Chairman Peter Wardle said in a statement: "We are working very closely with BAE Systems on future projects for the Ministry of Defence and hope to make an announcement about these in the near future."