Oilfield chemicals and de-icing specialist Zirax is scouting acquisitions after trebling interim pre-tax profits to £950,000.

The AIM-quoted company, which operates from plants at Volgagrad in Russia and Rosignano in Italy, increased turnover 65 per cent to £6.6 million in the six months to June. Operating profits in both oilfield process chemicals and de-icing more than doubled at a time when demand has been outstripping supply.

Chief financial officer Fenlon Dunphy says Zirax is keen to widen its product range and extend its geographical reach, with targets in the Middle East and Africa. To achieve this, he says the company is ‘actively looking’ at both new organic developments and potential acquisitions.

Zirax has £4.25 million cash. But, says Dunphy, the company would consider coming back to the stock market if the right acquisition opportunity came along.

With capacity being increased significantly, house broker Hanson Westhouse sees pre-tax profits rising by £350,000 to £2.3 million this year, with an acceleration to £4.3 million on the cards for 2008. At 14.75p, the shares have speculative appeal.

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Zirax	AIM	£6.89m	4.00p	0.00p
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