The Chieftain Group has reported profits of nearly £1m following losses of £450,000 last year.

The industrial insulation and fire-proofing group saw turnover rise to £11.8m and profits climb to £902,000.

Chieftain, which has branch offices in Newcastle and Teesside, said it had been concentrating on completing a number of major contracts and hoped to build new business and increase turnover and profits this year.

The company recently expanded across the UK from its North-East base and its subsidiary, R Blackett Charlton, has moved from fabricating industrial pipework to a complete mechanical services package.

The group said: "This is a very large market and is one which we see good opportunities for 2005 and beyond."

The group's established business of outfitting merchant vessels and warships, as well as offshore oil and gas platforms, continues to do well.

The marine business is supported by long-term contracts to outfit Astute class submarines.

The company said opportunities in the offshore market were limited, but it would remain in the market.

"Despite a slow start to 2005, we look forward with confidence to another successful year and the laying down of a solid foundation for significant growth in the next few years," it said.

The board has also made arrangements for the transfer of trading in the company's shares from the official list to the Alternative Investment Market.

"We believe this is better suited to Chieftain's size and ambitions," it said.