Pace Micro's interim results were better than analysts had forecast, with profits before tax and an exceptional item rising 53 per cent from £8.3m to £12.7m. The competition between BskyB and ONDigital to develop the digital TV market has resulted in a strong demand for Pace's set top boxes.

Indeed the company's integration technology, allied to the marketing strengths of the major TV players, has put Pace at the front of the next-generation use of TV sets. Soon home banking, home shopping, entertainment and e-mail will be available via a digital TV set, without the need for a personal computer.

While sales in the UK surged, business overseas was depressed. One silver lining was the contract with Time Warner Cable for a minimum of 750,000 boxes over the next three years. This exposure to the vast AOL Time Warner merger gave added impetus to Pace Micro's shares, which surged to over £7 each. Not bad for a share that was less than £2 last August - but Pace is now moving in the global 'Premier League' in its sector, and the telephone/IT/media sectors are expected to see considerable future growth.

Ellis & Everard also pleased the market with profits up 8 per cent in a business sector - the distribution of polymers and chemicals - which is far from glamorous. However, the US business has improved thanks to tight cost control and an increase in volumes, which more than offset the weak demand in the UK and lower average selling prices in Europe. Looking ahead, the company is developing its e-commerce capabilities. Its ability to deliver chemicals in a safe and environmentally sound manner will complement likely future trends to order goods via the Internet.

Further good news came from Wm Morrison in a trading statement which gave details of sales growth over the last 49 weeks and more especially over the seven week Christmas and New Year period. Sales in the week ending December 26 broke all previous records, in spite of the stores being closed for two days.

The important like-for-like sales figures showed a gain in food sales of 5 per cent over the year which doubled to 10 per cent over the Christmas period.

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