Horizon Technology Group has announced interim pretax earnings of €4.68 million for the six months to the end of June last, an increase of 27 per cent from the position a year ago.

The technology services and distribution group, which operates in Ireland and the UK, had revenues of €146.3 million, up 11 per cent on the same period last year. Gross profit grew 44 per cent to €27.1 million.

Chief executive Gary Coburn said the increase in profits was due to a focus on technology consulting which offers higher margins.

Last year Horizon acquired Irish firms EPC and WBT Systems, which are services-focused. Earnings from application consulting and services earnings grew 78 per cent and now account for one-third of group earnings.

Despite the acquisitions, revenues from Ireland were down, both sequentially and year-on-year to €27.8 million. In contrast, revenues in the UK grew sharply to €119.1 million, up from €100.8 million a year ago.

Mr Coburn said he was happy that the group's move to services from its original base of hardware distribution was resulting in increased margins.

"We do sell a lot of hardware but we wrap a lot of services around it," said Mr Coburn.

He said the company was still active in the acquisition market, but that no deals were imminent.

"People are valuing businesses very highly at the moment, but that will come down in time, allowing more deals to happen," said Mr Coburn.

Horizons results were well received by investment analysts.

NCB said the results were "solid" and that Horizon remains "cheap relative to its peers in the enterprise solutions space".

UK-based Shore Capital said the interim results were significantly ahead of its expectations and Horizon now presents an "attractive investment opportunity".