Growth will be dependent on trading conditions, the company said, so don't expect these kind of results in perpetuity.. Sales were up 16 per cent at pounds 195m.The growth has been achieved by the disposal of peripheral business to concentrate on the manufacture of industrial process equipment such as temperature controllers.Mr Hultman has been rationalising manufacturing processes and has invested pounds 10m in new machinery during the year. Stocks have fallen 5 per cent and a steady stream of new products has been launched, which should yield more benefits in the current year than the one just finished.Eurotherm has successfully integrated the American drive manufacturer it acquired this year. Yesterday's results continued the trend, although there was a warning that the market would be wrong to expect such spectacular growth every year.

This was the first time in years that Eurotherm had not sailed through its profit forecasts. Pre-tax profits grew by a thumping 30 per cent to pounds 34m in the year to October, although this was slightly below some expectations. The dividend is unlikely to be raised from 3.85p, but a gross yield of 7.5 per cent on the shares, which trade at 64p, has attractions.. Since Claes Hultman joined as chief executive of Eurotherm five years ago, the electrical components group has gone from strength to strength. It has managed to raise prices by around 9 per cent - which is more than the market-leading Thomson.This ability to push prices above those being charged in 1993 has mainly been possible by improving brand awareness through ditching the tired Owners Abroad name and a cupboard-full of brand names, and by cultivating a perception of value for money through smart and cost-effective marketing moves such as sponsoring weather forecasts on television.Moreover, First Choice, like Airtours, is gradually erasing the traditional winter loss made by holiday companies by the acquisition of counter-seasonal businesses in Canada, where the populace flies south when the snow starts falling and stays at home in the summer.If First Choice continues as is, there is every chance it will show taxable profits of pounds 25m this year and earnings per share of 5.5p.

Moreover, it would spell disaster for travel agencies and raise questions about the logic of vertical integration in the industry.First Choice can breathe a little more easily than other, smaller rivals if capacity has to be cut again. Bookings for next summer are down by 14 per cent, but the whole industry is sporting a much bigger 25 per cent drop.The overall industry fall of 25 per cent in bookings holds two worrying prospects if the crucial January-to-March selling season goes badly. If that happens, the tour operators will have cut capacity over and above the 16 per cent of holidays that have been taken out of the system. Profits before tax for the year to 31 October collapsed from pounds 16.3m to pounds 1.3m.However, to judge the rapidly changing First Choice by one set of numbers would be unjust.

Closer analysis of the figures, which are remarkably transparent for a holiday company, shows a much healthier picture.According to industry statistics, First Choice increased its share of the key summer holiday market from 11.8 to 13.1 per cent. The end result is that the industry will face a severe test of nerves, and will have to resist the temptation to panic and slash prices immediately the schools break up for next summer. If the main goal is to achieve a reasonable balance between supply and demand, then the quoted holiday companies have no choice but to hold firm on prices or suffer a damaging loss of credibility with investors.First Choice's annual results, well flagged during the recent rights issue, are a further testament to one of the poorest summers the industry has experienced in a long time. The reality is, however, that 20 per cent of holidaymakers will again leave it until the last moment before handing over a cheque at the travel agency. Airbus Yesterday's story based on German news report of a bribes inquiry into plane orders did not mean to suggest that the company itself was raided. An spokesman said: "We are aware of the allegations, but our executives were not involved.".