Omega, backed by Growth Company Investor as a strong buy at 159p in 2005, is well ahead of its strategic growth plan set out at float and should smash forecasts for the full year.

Bullish comments from chairman Bob Murray followed storming interims to June that sent the shares 30p higher to 277.5p. Highlights ranged from a 54% pre-tax profits growth to £3.1m, turnover up 20% to £13.5m and net assets increased 50% to 72p a share. The maker of branded kitchen furniture also continues to throw off large amounts of cash and was left with net cash of £4.5m at half time. Subsequently, along with the 0.7p interim payout, investors are to be furnished with a special 8p dividend.

Omega managed to lift operating margins from 18% to 22% during the half despite soaring energy costs. Earlier fears that the flat-pack kitchen market might be hit by the World Cup tournament proved unfounded, with a special four week promotion helping Omega sail through June. 'The promotion excited more than England did', remarked chief executive Francis Galvin, 'and helped us maintain volumes through the month'.

Now, the strategy is to double the size of the business by 2010, which looks achievable, with Omega still having less than 3% of a £1bn market and growing market share through superior kitchen ranges and high service levels to its expanding dealer network.

For 2006, well-known Evolution analyst Nick Bubb has upgraded his profit forecast by 12% to £6.25m, for earnings of 15.8p a share. 2007 numbers were also ratcheted northwards, and investors can now expect £8m of pre-tax profit and earnings of 20.2p, placing the shares on forward multiples of 17.6 and 13.7. Those ratings look cheap for a superior growth stock with a healthy balance sheet.