Companies: HMY   

Marine fluid handling specialist Hamworthy has lifted profits 29 per cent, with year-end orders up 71 per cent.

AIM-quoted Hamworthy, a leader in gas re-liquefaction systems, gas systems, offshore pumps and wastewater systems for tankers and cruise ships, increased pre-tax profits from £6.6 million to £8.5 million in 2005 on turnover 20 per cent ahead at £137 million, helped by the worldwide energy exploration drive. Year-end orders at the Dorset-based company were 71 per cent up at £207 million and chief executive Kelvyn Derrick says orders for delivery this year, including spares and services, now stand at £140 million, with another £90 million on order for 2007.

Pumps contributed 36 per cent of last year's profits. But Derrick sees greatest growth potential in gas, where 're-gasification' from liquefied natural gas tankers may increasingly have to be conducted offshore, because of environmental constraints in the US and elsewhere.

Hamworthy is working with Norwegian ship-owner Leif Hoeg on a project to do this. The company is also working with 'major players' on 'associated gas liquefaction', dealing with gas present in oil wells, which nowadays can no longer be flared off.

According to Derrick, Hamworthy, which has £20 million cash 'at hand', is studying other new products and is also actively seeking acquisitions in a 'consolidating market'. He says world shipyards are full and most oil companies will persist with projects until they see oil about to settle below $35 a barrel – against more than $70 today.

Some analysts see Hamworthy raising profits 45 per cent to some £12.5 million pre-tax this year. At 340p, up from Growth Company Investor's recommendation at 233p a year ago, the shares value the company at £147 million and look more resilient than many in the sector.