AIR filtration group Domnick Hunter's focus on the "recession resistant" sectors of food and pharmaceuticals reaped its reward in results yesterday.
The group, based in Birtley, near Gateshead, overcame the global economic slowdown to post a 14 per cent rise in interim pre-tax profits to £4.9m.
As a result of continued good trading in the second half the firm, which employs more than 1,400 people, including about 700 on Tyneside, has forecast a "good outcome" for the year as a whole.
Domnick Hunter makes filters and dryers for compressed air and gases, and has a range of products, including those used in the brewing industry and the production of fizzy drinks.
It is also involved in the production of nuclear, biological and chemical protection systems for use in tanks and other armoured vehicles, and has won orders worth more than £3.5m from Vickers, which has a tank factory in Newcastle.
It is involved in testing the systems in the US, which could lead to opportunities to grow the business.
Domnick Hunter's process operations division was the star performer with an 11 per cent rise in turnover to £14.3m, and a 40 per cent increase in operating profits to £1.7m.
Group chairman Brian Thompson said: "Product applications in market sectors such as pharmaceutical, food and beverage, which are often more resilient in times of economic downturn, are largely responsible for the growth."
He said the division was increasingly important to the company's growth strategy and would be the subject of significant investment.
However, the larger industrial operations division suffered from the poor trading environment, reflected in a 2.2 per cent reduction in turnover to £45.1m and a 2.5 per cent fall in operating profit to £3.7m.
Mr Thompson said the company aimed to boost industrial sales by increasing revenues from products introduced in the past year.
Across the group, turnover rose 0.7 per cent to £59.4m, with operating profit up amost eight per cent, to £5.4m.
Mr Thompson said: "In the light of this positive set of interim results and a strong start to the second half of the year, we still remain confident of a good outcome for the year as a whole."
Shareholders will receive an interim dividend of 3.8p, up 2.7 per cent on a year ago.
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