Imagination's Chinese boost

Surging demand for cheap, low-end smartphones in China is driving growth at Imagination Technologies, the designer of chips and graphic processors in Apple's iPhone and iPad, which says it is also seeing signs of recovery in the West.

"I think we are truly beginning to see the first signs that things are going to get better in the consumer space," said chief executive Hossein Yassaie, despite recent fears about a triple-dip recession in the UK.

Revenues rose 27 per cent to £71.4m in the six months to October. Pre-tax profits were flat at £10.4m.