The parent company of Skipton-based Dales Pharmaceuticals has seen turnover soar to £92.4 million in its interim results.

But Dechra Pharmaceuticals, which has seen turnover rise from £84.2m, has reported a drop in operating profits for the period ending December 2002.

The firm has seen profits drop to £3.9m from the £4.3m it made the year before.

The firm has blamed the performance on a rise in overheads and insurance premiums.

At the end of last year Dechra merged Anglian Pharma, which it acquired in May 2002, into its Skipton manufacturing facility.

A spokesman for the firm said: "Reduced productivity during the integration process resulted in lower margins than forecast.

"Having now consolidated in Skipton we have strengthened the management team, improved the support structure and have agreed challenging new performance targets with management and staff.

"We anticipate seeing the results of these actions by the beginning of the new financial year."

Ian Page, Dechra's chief executive, added: "The integration played a significant part in the fall in operating profits.

"But the potential capacity is still there and we know we can now increase output from the site."

Last year Dales said it was confident a £2.8m investment programme would quadruple its sales to £20m over the next few years.

Mr Page said: "Despite the issues faced by our businesses in the period, which have been reflected in our first half performance, the board elected to continue to invest strategically in product development, new facilities and key personnel.

"These investments will underpin future growth."

Dechra Pharmaceuticals plc floated on the Stock Exchange in September 2000.