Anti-fraud firm's joy at turn around.

Byline: By Graeme King

Hi-tech anti-counterfeiting company Opsec has bounced back and was yesterday celebrating a tripling of its profits.

The Wearside company, which only two years ago posted a pounds 1.2m loss for the same six-month period to September 30, said its markets were buoyant and its strategy was paying off.

Sales reached pounds 14.4m, up from pounds 13m last time, while pre-tax profits reaching pounds 2.76m represented a great turn around from pounds 0.93m in 2005.

The business, previously known as Applied Optical Technologies, is split into three divisions. These are banknotes and high security documents, brand protection ( such as security tags, and ID technologies like those used to protect photographs in driving licences and passports.

Clients include such blue chip names as General Motors and American Express, among many others.

Finance director Mike Angus said: "Our markets are clearly growing. We are in very good markets and we are getting our strategy right." Mr Angus said Opsec's 3dcd joint venture, working on DVD security, had performed particularly well during the period due to a large software client launching a new product which included 3dcd technology.

He said: "We've had an extraordinary year with profits boosted there. The joint venture will continue to be profitable, but not at the level it currently is."

Mr Angus said it was important for Opsec to keep innovating to keep its products up to date, and outwit two different kinds of competition.

He said: "We have competitor companies and we have competitors in terms of the criminals that we have to stay one step ahead of. So we have a constant R&D programme, upgrading and improving our products ( some of those staff are in the North-East, some at our base in Leicestershire, some in the US."

Less than two years ago, the company was obliged to axe half its 163 staff as it pulled out of loss-making euro banknote foils and the packaging and metallising markets. But now numbers are recovering ( up to 94 in the UK.

Mr Angus said: "Overall UK staff numbers were down to the high 70s at one point, but they have recovered and we have been recruiting this year."

David Mahony (correct), chairman of Opsec, said: "We view the prospects for the balance of the year very positively. Current trading is at record levels and the group is actively pursuing a number of significant business opportunities. We are also in the early stages of a number of discussions with possible acquisitions which we believe would further strengthen the group."