Despite a slow start in 2010 for bio-decontamination technology group Bioquell, revenues grew 1%, but higher overheads resulted in a 44% fall in profits.

Revenue for the year ended 31 December grew to £39.4m, from £39.2m, while total orders increased 24% from £36.2m to £44.8m.

The first half saw a significant slowdown in activity from the life sciences sector, due to large pharmaceutical groups cutting their cost bases in Western Europe and North America, the group said. However, the second half saw a strong recovery in both the life sciences and defence sectors.

Pre-tax profit fell from £5.9m in 2009 to £3.3m, as a result of a poor first half and a 21% increase in operating expenses, due to the expansion of operations in the US and the Asia Pacific region and higher investment in sales and marketing. Pre-tax profit in the first six months of the year totalled just £0.5m.

Basic earnings per share almost halved from 10.3p to 5.8p.

"After a challenging first half of the year, it was extremely encouraging to see activity picking up across all of the group's activities in the second half - and we have gone into 2011 with good momentum," said chairman Nigel Keen.

The final dividend grew 8% to 2.62p, from 2.42p.

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