PROSPECTS at engineering group L Gardner, parent firm of Cleveland Guest, are "encouraging" after the firm announced a leap in profits.

For the year to year to August 31 pre-tax profits rose to £9.6million compared with £6.34 million in the previous year. Turnover increased to £64.86million from £43.94million.

The firm said order prospects generally were encouraging, particularly for new ranges of components following the increase in the group's production capability. The group is also benefiting from the significant investment being made in new buses and rolling stock.

The firm is proposing that Roger Newton, currently group chief executive, be appointed executive chairman with David Blair becoming group chief executive.

Cleveland-Guest, which employs more than 135 people at its Colne site, supplies precision machined components to major aerospace firms.

It was bought by L Gardner last year and is part of the group's aerospace division. The firm recently won a share of a £12million contract for work on the Eurofighter Typhoon.

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