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Tech company is reaping the benefits of research.

TECHNOLOGY company Invensys has said its commitment to research and development spending in the recession had been rewarded after its order book grew by 11% and it lifted annual operating profits by 2%.

The company, which provides railway signalling systems and controls for a wide range of domestic appliances, said it was particularly encouraged by its workload in emerging markets, accounting for 40% of orders.

Its order book stood at just over pounds 2.3bn at the end of March, an increase of 78% over two years. Revenues were 2% lower at pounds 2.2 billion in the year to March 31, but operating profits increased by pounds 4m to pounds 248m and pre-tax profits by pounds 14m to pounds 179m.

London-based Invensys, which employs 3,000 people in the UK out of a total workforce of 20,000, returned to the FTSE 100 Index in the summer of 2008 after a debt restructuring and disposal process earlier in the decade.

Chief executive Ulf Henriksson said the strategy during the recession meant it was now well-placed to benefit from the expected recovery in its markets. Invensys' order book has grown on the back of some large orders, including a recent contract for control and safety solutions at two nuclear reactors in China and the resignalling of three metro lines in Sao Paulo, Brazil.

Mr Henriksson added: "Looking forward, we are positive about the outlook based upon our large order book and our current view of economic conditions. We expect the group to continue to deliver improved performance in the current year."
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Publication:The Journal (Newcastle, England)
Date:May 25, 2010
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