SMITH & Nephew, one of East Lancashire's biggest employers, today reported profits of £176 million.

The firm, which employs more than 500 at its Pendle sites manufacturing bandages and cotton wool, also saw sales grow by eight per cent last year.

The increased turnover helped pre-tax profits storm to £176.8 million, after a loss of £5.5 million in 1994.

Chief executive John Robinson, said the outlook was particularly rosy given the drive by hospitals, the group's major customers, to buy products efficiently.

"The more hospitals around the world strive for efficient buying of effective products, the better it is for us.

"The more they become efficient, the more likely they are to buy our products, a trend which is likely to continue."

Mr Robinson stressed there was no foundation to long-standing rumours that the group might be subject to a takeover bid.

During the year, the group made three acquisitions - the largest, Acufex, for £90 million, makes hand-held surgical instruments.

Homecraft was bought for £29 million and is the UK's leading supplier of rehabilitation products, while ProCare, a US bracing and orthopaedic accessories business, was snapped up for £25 million.

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