PROFITS jumped up by more than £9m this year at science and engineering firm AEA Technology.

The Harwell-based company turned in pre-tax profits of £9.5m for the six-month period ending September 30 - eight per cent up on the same period last year.

Turnover also increased three per cent from £166.6m to £171.3m.

Chief executive Peter Watson said: "While we anticipate continued progress in most of our businesses, the outlook remains uncertain for energy and engineering software.

"Market conditions in the oil and gas sector have still to improve, despite the recent recovery in crude oil prices.

"However, we remain confident that we will be in a position to resume a higher growth trajectory next year."

He added: "Improving our access to markets is a priority. We will continue to seek new strategic alliances, while the launch of 70 new products will further strengthen our position, particularly in engineering software.

"We will continue our drive to sharpen the focus of the business and seek new ways of taking technology to the market."

The company is setting up a joint venture with BNFL. a major player in the nuclear-support technology business with £150m turnover, scheduled to start next April.

The 1,350 employees will transfer from existing departments of the two companies in the joint venture.

New products launched by AEA Technology this year include the Electrocat, a plasma-based filter which removes harmful carbon particulates from diesel exhausts, helping manufacturers meet stringent European limits that are due to come into force in 2005.

AEA Technology is now also a major supplier of specialist batteries, notably to the British Army.

Story date: Tuesday 30 November

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.