The industrial controls supplier has concentrated on improving margins and efficiency, cutting a fifth of its workforce in the past two years. Turnover, however, was ahead by just 3.8 per cent at pounds 81m in the six months to 30 April.
'This reflects the fact that we can restore profitability irrespective of trading conditions. What you want is a strong balance sheet,' said Jack Leonard, chairman and founder.
'We now have a very strong company but we are well aware that we need to resume generic growth.'
New products, to be introduced within the next 12 months, would help that growth, he said. There was also a burgeoning US market in brand labelling of its control systems.
Claes Hultman, the chief executive, said the figures reflected Eurotherm's resilience. 'Our products go to many different industries. Some are slowing, like chemicals and steel, but others are up, like pharmaceuticals, water and electrical utilities.'
Eurotherm has cut borrowings from pounds 13.9m last time to pounds 1.8m. Gearing has fallen from 12.9 per cent to 2.9 per cent. Earnings rose 37 per cent to 13.7p and the interim dividend is up from 3p to 3.5p. The shares rose 3p to 591p.