A FAMILY-OWNED chemical firm says it remains committed to growth despite a fall in profit.

Thomas Swan and Co Limited has vowed to overcome competitive markets after earnings thinned following a patent settlement.

The business, based in Consett, County Durham, is known for working on graphene, which experts say is an ultra-light carbon material capable of adding toughness to plastics and cutting friction in lubricants.

According to its latest annual results, turnover was up nearly five per cent at £25.4m, with gross profit up from £5.3m to £5.9m.

However, operating profit fell from £2.3m to £1.4m as the effects of a previous patent payment weakened from a year ago.

Profit for the financial year stood at £1.085m, down from £2.039m.

But bosses at the company, founded in the 1920s when Tommy Swan set up mixing plants at Consett’s Crookhall works, say it is well placed for growth, highlighting its net assets, worth £16.5m, and its strong position in a growing industry.

David Cavet, director, said the results offer a sound platform upon which to build, adding it is committed to expanding in the science and technology sector through further development of its products.

He said: “The group continues to strive to expand, both by internal growth and acquisition.

“The external commercial environment is expected to remain competitive and the group operates in a changing market place where growth is dependent on maintaining relationships and developing new business.

“We believe this can be achieved by continuing to provide a range of high-quality products and services at competitive prices.

“The directors remain confident the profitable performance will continue in the future - the group continues to invest to improve capacity and profitability (and is) committed to research and development.”

The company last year revealed it was supporting the National Graphene Institute to create a thermal paste using the chemical compound boron nitride.

Officials said the paste would allow electronics to run at much lower temperatures, meaning high-performance products can last longer.

The business also previously scaled up its Elicarb graphene plant to make more of the material, and unveiled new grades of the substance for inks and plastics.

At the time, Andy Goodwin, advanced materials commercial director, told The Northern Echo it was all about finding a perfect balance.

He said: “The graphene industry is very significant for the UK and the challenge is getting the right graphene for the right application.

“Graphene could be used in things like batteries, touch panels and printable electronics, and we expect to find it is a good fit in some areas, but not so in others.

“There is a significant will in our leadership to grow through product innovation.”

In its infancy, the firm was known for converting steel industry slag waste into road surfacing material.

However, when road builders changed from using tar as a binder to bitumen on roads, it created a surfactant, which became its first chemical product.

Its expertise now includes tyre and rubber additives in a performance chemicals division, while it also supplies an active ingredient that goes into cleaning agent Dettol.