Jobs could be lost at the Keighley-based Magnet kitchen and bathroom group - despite it making a hefty profit.

A review is taking place of the Magnet business, owned by London firm Berisford, which could bring about redundancies among its 530 staff.

Magnet yesterday announced a 49 per cent rise in its operating profit from £11.2 million last time to £16.7 million. This was on an eight per cent rise in turnover to £250.5 million from £231.1 million last time.

The company said today that its overall plan was increase efficiency at the Royds Ings Avenue site and invest in the factory with new plant and machinery which did not need as many people to operate it.

Magnet chief executive David Williams said: "This has been a good year for Magnet in spite of a more challenging market. Our strategy of new product development, improved service and enhanced operating efficiencies is bearing fruit and will continue to provide the momentum for future progress."

In April the firm resolved its long-running industrial dispute at its Darlington factory which started in August, 1996 and transferred the work carried out at its Rotherham factory, which it shut, to the plant.

In July, Magnet acquired the bathroom distributor, C P Hart, whose brand name it will use increasingly in its showrooms next year. Magnet also successfully launched a new range of PVCu windows and doors for new house builders from its factory in Flint.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.