HUNDREDS of workers who made a paper fortune when their company floated on the stock market have seen it shoot up by more than half as much again in a matter of weeks.

Employees who hung on to their average shareholding of £20,000 when Ultraframe went public have had their windfall increase in value by 53 per cent - more than £10,000.

Since Clitheroe-based Ultraframe floated in October its stock market value has increased by tens of millions.

Shares have risen steadily and since the New Year alone they have pushed 25 per cent higher as the city awaits the conservatory roofing firm's first financial results next week. Even investors who bought the shares on the open market just after they began trading have seen them increase by 40 per cent.

The increase compares with an average rise in shares on the UK stock market over the same period of around just one per cent.

Tony Hedley, of Blackburn-based stockbrokers Hedley & Co said: "Compared with most stock market flotations a large chunk of the shares are owned by employees and directors of the firm.

"Because they have hung on to most of their shares there been fewer available for sale to other investors which has pushed the price higher."

The employees' combined holding of around 10 per cent of the company is now worth around £20 million.

Under the terms of the share offer to employees they were allowed to sell half of their holding immediately when it floated but they only opted to sell about 25 per cent.

For every £1 they invested in Ultraframe less than a year ago they now have a stake worth more than £120.

Shares in the company were offered to employees before the flotation by founder John Lancaster last year and more than 95 per cent of the 500-strong workforce took up the offer of an allotment based on length of service.

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