ONE of the region's IT companies has increased orders by 76 per cent during the past year.

Chelford, which last year bought Darlington's Agility Systems, said it expected its full-year trading to be ahead of expectations and significantly ahead of 2004.

The company said it had continued to build on the strong progress of the past two years, helped by the acquisition of Agility Systems in September.

In a statement, the company said: "All parts of the group have made significant progress throughout 2005."

Chelford remains debt-free with net cash at the end of the year of £900,000, after investing £3.2m in acquisitions during the second half of the year.

Chief executive Trevor Lewis said: "We have laid a firm foundation for 2006 with order intake up by 76 per cent compared to the same time last year."

Full-year results are expected in April.

Chelford bought Agility to gain a foothold in the emerging radio frequency identification (RFID) market, which is used to track items in transit.

Agility, which has an annual turnover of £2.75m, has been specialising in logistics IT services for ten years, but recently set up a subsidiary, RFID Solution Centre, to research the potentially multi-billion-pound market. It recently secured its first RFID contract with parcel carrier GeoPost.

The company, which is based at Lingfield Point Business Park, Darlington, is investing about £250,000 a year in research and development through its RFID Solution Centre operation.

Most of Agility's business remains in supply chain technology, other than RFID, for major international logistics companies.