Horizon Technology made a profit of €2.73 million in the first six months of 2004 and signalled a "measured recovery" in the technology industry yesterday.

The Dublin-based firm, which operates in the British and Irish markets, said it expected this measured recovery to continue into the second half of the year.

Pre-tax profits for the first six months of the year increased to €2.73 million, up from €317,000 in the same period a year earlier.

Horizon Technology also reported growth in earnings per share, which increased to 3 cents per share, up from 0.23 cents per share a year earlier, according to results which met expectations.

Buoyed by a measured recovery in the technology industry, Horizon Technology's turnover rose to €150.8 million in the six months to June 30th, 2004, up from €128.5 million in the first half of 2003.

The company's two main operating divisions, Enterprise Solutions and Computer Distribution, saw turnover growth of 16.4 per cent and 18.5 per cent respectively.

In an outlook statement, Mr Samir Naji, Horizon Technology's founder and chairman, said the firm's objective was to sustain the recent pace of earnings growth. The company was well positioned to convert market share gains and any further upturn in the market, he added.

Founded in 1988, Horizon Technology implements, integrates and distributes technology and computer equipment. It is now one of Sun Microsystems' largest partners in Britain and Ireland.

Shares in Horizon Technology closed up 1 cent at €1.04 in Dublin following comments by its broker that it intends to upgrade its 2004 and 2005 earnings forecast. Davy's said it expected to upgrade its diluted earnings per share forecast of 7.7 cents by 10 per cent due to the strong results.