Clinical products group Trinity Biotech has reported a sharp rise in pre-tax profit in 2003. Sales rose 26 per cent to $65.7 million (€51 million) in the year, as pre-tax profits rose 40 per cent to $7.98 million.

The strong results came despite a $1.12 million write-off in respect of human genome research company HiberGen, in which Trinity Biotech had a 43 per cent shareholding. HiberGen closed in November after a failed fundraising and a decision by Trinity not to invest further in it.

In a conference call, the company said fourth-quarter sales had been affected by a dispute between the company and Inverness Medical Innovations, which acts as exclusive distributor for certain of its products in the US.

Trinity has sued Inverness, claiming it is trying to channel customers towards its own products at the expense of Trinity Biotech.

Trinity Biotech's chief financial officer, Mr Rory Nealon, said the sales growth reflected a combination of organic growth and acquisitions.

"Revenues have grown for the sixth year in succession at an average growth rate of 25 per cent per annum," he said. "Our operating profit at 14.8 per cent of revenues is well ahead of industry standards."

Operating margins were squeezed slightly during the year.

He said the company was in a strong financial position, with cash in hand of $43 million following a recent $22.5 million private placement.

Chief executive Mr Ronan O'Caoimh said the results "met expectations". He said both of the group's business units were performing strongly.

Trinity sells more than 500 diagnostic products and has recently won approval to sell a 10-minute HIV test in the US.

He said the company's cash hoard and strong operating profits "will enable increased acquisition activity".

The company recently stated that it hopes to find suitable acquisition opportunities soon.