At the time of writing shares were up 4% at 1.48, but had earlier risen to 1.52.

The ink-jet print head developer met analysts sales expectations of 35m, up 20% on 2003, pre-tax profits of just over 6m exceeded expectations by 20%. It will release its full figures for the year to the end of December 2004 on 15 March.

The firm said its outlook for 2005 was positive despite the weakness of its primary trading currency the dollar.

In 2005 the firm will start volume shipments of print heads to partner Agfa and double the size of its product range. It expects its core market of outdoor advertising to continue to grow and for the new generation of print heads to start to make headway in high quality indoor markets.

It is also developing other markets, it will accelerate business development in packaging and industrial printing in 2005 and is carrying out research and development in other fields including electronics and displays as well as coating and label printing, with the first products expected in 2006.

Story by Barney Cox