The results of the first quarter of 2007 show the Italian company closed with higher consolidated revenues of €94.6m, which was 22.4 per cent up on the same period last year.

Operating profit tripled to €9.5m as had profit before tax to €7.3m.

IMA, a leader in the design and manufacture of automatic machines for the packaging of pharmaceutical products, attributed the positive results to the favourable trend in sales to the pharmaceutical industry, which accounts for around 83 per cent of IMA's turnover.

After a disappointing financial result in 2005, where the company posted a pre tax loss of €5.9 in the first quarter, the company has swung back into profit buoyed by an upswing in orders from the pharmaceutical industry.

A deal worth €5.9m in March last year saw IMA acquiring VIMA Impianti, signifying IMA's first move in the direction of pharmaceutical processing machinery. That sale has contributed approximately €2m towards the €17.3m increase in IMA revenue in the past year.

The company is expected to further strengthen its position in the pharmaceutical sector after the firm successfully bought Zanchetta, a rival in the production of machines for the handling and granulation of pharmaceutical powders, in a deal worth €1.4m in April.

The company expects forecasts for 2007 to show a revenue increase to about €450m with a gross operating profit of about €17.

IMA managing director Alberto Vacchi was pleased with the first quarter results.

"The results for the first three months, which show strong growth, are the continuation of a very favourable trend that began at the end of 2005. This led to an excellent set of financial statements for 2006 and will continue during the current year.

"For 2007, we are looking for a strong rise in both sales and profitability in line with what we have already announced," he said.

IMA also announced it would be calling for a cancellation of 2 million treasury shares in an effort to improve earnings per share and distribute a higher dividend per share compared with the shares currently in circulation.

The proposal would be discussed at a shareholders' meeting in June.

IMA has 15 production plants in Italy, Germany, the UK, the US, India and China.

The company will feature its product innovation at the second edition of the Pharmintech trade fair in Bologna between June 12 and 14.