Companies: MTT   

Israeli speciality metals and chemicals group Metal-Tech has trebled profits to £16 million pre-tax.

Floated by entrepreneur Aik Rosenberg last August with a £10.5 million placing at 130p, Beer-Sheva-based Metal-Tech uses proprietary technology to convert low-grade metals, mining tailings and waste into high-value oxides and metal powders, with an emphasis on molybdenum and tungsten for use in stainless steel, petrochemicals and cutting tools. The company raised pre-tax profits 283 per cent to £15.7 million in 2005 on revenues up 113 per cent to £74 million, with profitability helped by rising raw material prices.

Molybdenum prices retreated from peak levels at the beginning of this year, but chief executive Ben Raimon still sees a 10 per cent year-on-year increase in revenues for the first half of 2006. Metal-Tech plans to stimulate growth by establishing international joint ventures and commissioning new recycling plants using the company's cost-cutting hydrometallurgy process.

A 2.25p dividend is proposed on the shares, which have performed well so far, rising another 27.5p today to 233.5p, where they value Metal-Tech at £90 million. Hold on.

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