Turnover in the six months to 30 June was up 25% to 16.9m, while operating profit was 2.4m compared to a loss of 3.3m in 2003. The figures would have been even stronger, but for the weakness of the US dollar which reduced revenues by 1.5m, the firm claimed.

"There's a 5.7m rise in profits compared to last year," said chief executive Ian Dinwoodie. "That's down to the effects of productivity improvements."

Following warranty problems with its XJ500 print head, Dinwoodie and his team implemented a total overhaul of the firm's factory in Sweden, the effects of which are being seen now. Its core outdoor graphics market, which largely uses its XJ128 head has continued to grow.

Asia, and particularly China, continues to be its strongest market contributing 56% of sales; but Europe grew 9% from the second half of 2003 to the first half of 2004, driven by the resurgence of Scitex Vision and Nur.

Analysts estimate that for the full-year turnover will be 35m with a 5m operating profit. The first of its next-generation print heads, the Omnidot, co-developed with Agfa, has gone to an undisclosed partner for evaluation. Others will follow in the second half of this year and the first half of 2005.

Its third-generation print head the HSS, which is being developed for high-volume web printing applications, will begin early trials next year.

Story by Barney Cox