Despite recession profits have grown steadily from pounds 1

Despite recession, profits have grown steadily from pounds 1.51m in 1990 to pounds 3.11m last year.Interim figures, released alongside the announcement of the Selee purchase, show a sharp quickening in the pace of growth. Turnover rose by 51 per cent to pounds 15.3m, with pre-tax profits up 32 per cent to pounds l.26m. The main reason for the slower rise in profits is that the group is investing heavily in future growth, which absorbs some profitability short term. For example, it has developed an innovative form of printing blanket (a consumable used in the printing industry) which could lead to a significant share in a world market measured in hundreds of millions of pounds.An encouraging feature of the results was a strong upturn by Permair, the original group business, making a plastic membrane which can give low-grade leather the characteristics of material of much higher quality.Stockbrokers' analysts are forecasting profits reaching pounds 5.3m in the year to November, followed by pounds 8.5m for 1995-1996. On those numbers, the price- earnings ratio drops to the mid-teens for 1995-96, the first year with a full contribution from Selee.

That is good value for a business which looks poised for many years of above-average growth.ends. THE banks' half-year reporting season is upon us, and already clear signs are emerging of the winners and losers. National Westminster, despite a seemingly impressive 14 per cent rise in pre-tax profits, was unanimously condemned by the market and commentators. The shares probably remain a long-term hold, but there is little incentive to buy at this point. By contrast, Lloyds Bank continues to shine, despite (or because of?) its smaller size, and at 709p the shares remain attractive. The other front-runner at this stage is Abbey National, which also produced a strong performance. Smith New Court rates the shares a buy, and it is hard to disagree.

Abbey's market share of new mortgage business fell to 4 per cent, despite it having 12.3 per cent of outstanding mortgages in the UK. But it boosted life insurance sales by 11 per cent to pounds 52m, and earnings per share by 19 per cent to 24.7p. Even if the relative outperformance slows in the next year, the shares remain attractive at 534p.ECLIPSE BLINDS' (18p) one-for-six rights and placing to raise pounds 4.2m has seen some pressure on the shares in the past few days. And a remarkable recovery by the company over the past year may suggest the shares' progress is likely to come to an end.