Bottom Line: Eurotherm in hot form

CLAUS HULTMAN, chief executive of Eurotherm, deserves his pounds 437,000 salary - pounds 350,000 more than his predecessor. As recession bit, Eurotherm's taxable profits slumped from pounds 17.5m in 1989 to pounds 7m in 1991. Under Mr Hultman's guidance, its fortunes have reversed dramatically.

There was more good news yesterday. Pre-tax profits for the year to 31 October jumped 37 per cent to pounds 20.1m. Earnings per share expanded similarly and the dividend was raised 19 per cent to 9.5p.

Mr Hultman's strategy has been to cut costs, and the shares, up 16p yesterday at 690p and trading on a prospective p/e of 19, reflect his success. However, future growth will depend on increasing volumes, which will not be easy.

Eurotherm is a strong company, but investors may find better value for money elsewhere.