GASKELL plc which employs more than 500 at its East Lancashire textile plants has seen profits rise by 13 per cent.

The carpets and textiles firm increased pre-tax profits last year to £807,000 on turnover of £39.1 million despite difficult trading conditions.

Gaskell Textiles, based at Lee MIll, Bacup, saw turnover increase by 10 per cent to almost £18 million. New products, including ranges of carpet tiles, performed well and underlay sales also increased.

The carpets divison, based in Rishton, saw turnover held at £14 million despite depressed market conditions. But a shortage of large commercial contracts meant the division failed to repeat the rapid growth seen in 1994.

A reorganisation of looms at the mill during the year increased Axminster production capacity.

retail sales increased by seven per cent and exports added more than £2 million.

Company chairman Edward Andrew said the firm had invested heavily in 1995 and would continue to do so this year.

"I believe that we have established a solid base for the future growth of the business and the group's prospects are better than they have been for a number of years.

"Gaskell has now firmly established itself as a major force in both the contract and retail markets."

Shareholders will receive a final dividend of 3p per share.

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