WOODCHESTER Investments is on a steady growth path. First-half profits had slipped from 91 to 1994 and recovered in 1995 but that profit level was still below the previous record level of £18 million level in 1991. The latest results have now surpassed that by more than £3 million.

Apart from growth in all its core businesses, and in all geographic areas, Woodchester has, and is, getting benefits from a reorganisation of its Irish operations. It is now going to try an emulate this in other areas. In Britain, a conversion of Anglo Group's systems into its own will improve Anglo's cost/income ratio. Woodchester acquired Anglo last year.

It is planning to relocate the processing of the Danish and Portuguese businesses in one location. These businesses, said Mr McKinney, Woodchester's chairman, had now reached a "critical mass" and would make a greater contribution in the future.

Denmark and Portugal now account for the 10 per cent of the group's profits. These areas are growing very strongly. Profits from Denmark, for example, rose by 200 per cent to £900,000 and new business advances grew by 79 per cent, while profits from Portugal - a high margin area - increased by 70 per cent to £1.7 million and new advances went up by 210 per cent. These businesses could account for 17 per cent of profit next year.

And growth could be accelerated further by plans to set up a business in a further European country. Woodchester is targeting Sweden and it will be an add-on to its existing business.

Overall, Woodchester is facing a period of sustained growth. The shares up 4p to 187p (12-month high 202p;low 158p) are on a prospective price/earnings ratio of 11.7, assuming earnings per share rise from 13p to 16p this year which is an undemanding rating.