Acquisitive oil and gas quality control specialist Velosi says interim results will not disappoint as it enters new markets.

Malaysia-based Velosi, which floated on AIM last August at 90p, more than doubled pre-tax profits to £4 million last year on turnover 117 per cent up at £35 million. The company, which provides services around the world to the likes of Shell and BP, says trading is in line with expectations, commenting that 'high profile' equipment failures in 2006 have increased 'international awareness of the importance of quality control and quality assurance' in the sector.

Velosi, headed by Dr. Nabil Abdul Jalil, has used acquisitions to expand its reach into the Australian mining market and South Africa. The same strategy has taken the company and into new business areas, such as 3-D laser scanning of oil and gas facilities to create 'virtual models' tp develop maintenance and modification design blueprints.

Analysts expect pre-tax profits to rise some 44 per cent this year to around £5.7 million, despite the weakness of the US dollar in which most of its business is done, with earnings rising 26 per cent to 4.8p a share. At 132p, down from May's 166p high, the shares should make further gains in the medium term.