The group said orders were up 84% at £73.0m and revenues increased by 5% to £53.3m.

The group reports adjusted operating profits of £2.3m - up 10% on last time.

But it says the second half of the year will be hit by a reduced forecast revenue and adjusted operating profit outturn at PPC, its Washington-based operation.

Chairman Dr Paul Golby said: "After a first half in line with our expectations, it is disappointing that a reduced revenue and adjusted operating profit outturn will impact the second half of the current financial year.

"However, I am pleased to report that Lloyds Banking Group have now agreed financial covenants for 2012, giving the group access to its existing facility for the foreseeable future.

"The directors expect to successfully renegotiate covenants for 2013 during 2012."

At 8:36am: (LON:AAT) AEA Technology share price was +0.18p at 0.68p

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