THE growth of the telemarketing industry helped the Irish division of telecommunications company Cable & Wireless, to turn in a 10 per cent increase in profits to £570,000 last year.

Turnover during the period grew by 6 per cent to £18 million, according to chief executive, Mr Nick Koumarianos.

Cable & Wireless claims to be the largest private supplier of telecommunications equipment and services in Ireland and employs over 160 people.

The general buoyancy of the economy and the success of development agencies in attracting new tele marketing service companies to Ireland has fuelled demand for Cable & Wireless's services, he said.

During the year Cable & Wireless won orders from AIB Creative Laboratories, CRH Jefferson Smurfit Group, Pfizer Bank and Xylink.

The company was also chosen to provide technical support for the Cable Wireless European Voice Network with the establishment of a European Switch Technical Assistance Centre in Dublin.

The centre will monitor Cable & Wireless switches across Europe and diagnose and repair faults.

The Cable & Wireless group posted a sharp rise in pre tax profits yesterday. The group's pre tax profits rose to £1.34 billion sterling from £844 million last year.

However, the figure included a £199 million sterling contribution from the sale of its stake in the German mobile phone operator Mobilfunk.

Analysts said the previous year's figures were distorted by heavy restructuring charges. Excluding once off items, profits rose to £1.262 billion sterling from £1.144 billion.

However, Cable & Wireless shares slumped 27p to a low of 439p sterling yesterday after it ruled out a renewal of merger talks with British Telecom.

"It won't happen again," Cable & Wireless' chairman Mr Brian Smith told a news briefing, referring to the talks with British Telecom. "And the idea of doing a cross border merger would be mind bogglingly difficult," he said.

The two companies broke off merger talks recently, citing a range of regulatory obstacles around the world and the problem of integrating their existing industry partnerships.