Specialist digital camera manufacturer Andor Technology is developing cameras that will be used by security firms and the military for the detection of hazardous chemicals, after winning two design contracts worth more than $1 million (€677,000), the Belfast-based firm said yesterday.

Andor, which produces cameras for use in scientific research, saw its turnover increase 10.5 per cent to £21.3 million (€29.7 million) and pretax profits rise 2.7 per cent to £1.35 million in the year to the end of September, its full-year results show.

Despite suffering as a result the weak dollar and a US government delay in awarding research budgets, a strong performance in Europe and the Asia-Pacific region meant Andor's operating profit, adjusted for share-based payments and amortisation, rose by 1.2 per cent to £1.42 million.

Sales to the scientific research community grew by 9 per cent and represent 70 per cent of Andor's business, but in the US sales grew by just 2 per cent after delays in the granting of federal research budgets to potential Andor customers. When they were awarded, the budgets were lower than anticipated.

Conor Walsh, who took over as Andor chief executive in June, said there would be a budget shortfall again in 2008. In order to reduce its dependence on the publicly funded sector, Andor will now concentrate on growing its industrial or original equipment manufacturer (OEM) sales.

This end of its operations, which includes the security business, involves making cameras that are incorporated by other manufacturers into their own applications. OEM sales grew by 17 per cent to £6 million last year.

Mr Walsh said Andor's hazardous material detection cameras could have both military applications and commercial ones, for example at airports.

Andor, which employs 150 people in Belfast and a total of 186 people, is listed on the Alternative Investment Market (AIM) in London and Dublin's IEX market.