Engineering group Unidare is to resume the payment of dividends following a 73 per cent increase in its pre-tax profits.

Pre-tax profits for the year to end September 2004 were €9 million, according to preliminary results released yesterday. The corresponding figure in 2003 was €5.2 million.

Operating profits were up 52 per cent to €10 million, aided by substantially lower central costs. Sales were up marginally, to €208 million from €204 million.

The board are recommending the payment of a dividend on February 25th, 2005, of 5 cents per share. It will be the first dividend payment since 2001.

There was a significant increase in the amount of operating profit deriving from the group's North American distribution arm, ORS Nasco. Operating profit grew to €5.56 million from €3.3 million in 2003.

The company said the operational leverage achieved from the increased sales and tight control of expenses in North America, assisted by an increase in the size of customers' average purchase order and the level of vendor rebates earned, resulted in an improvement in the operating margin there.

Sales increased due to the success of a number of sales and marketing initiatives combined with an improved US economy. Sales were up to €140.4 million, from €127 million.

Operating profit from manufacturing in Europe was down to €5.7 million from €6.1 million.

Chairman Mr Jack Hayes said that while the group is faced with a weakening dollar and very high copper prices, management is fully committed to building on the group's performance.