BURY-based Pennine Telecom has bucked the trend in a volatile sector and turned in another year of increased profits.

Pennine and its sister company Interquartz (UK) had a combined turnover of £9 million and expects to generate a profit of more than £500,000.

Managing Director Ian Macpherson said: "This could arguably be described as the most difficult year ever for the modern telecoms industry, with frozen capital expenditure budgets affecting new businesses, so to have put in such a performance is really tremendous."

Mr Macpherson said that when market conditions were "tight" he believed there should be a strong emphasis on marketing.

Pennine, which is based in Salford Street, Bury, has been established for 26 years and employs 90 staff.

It serves customers nationwide, covering telephone and radio systems, choice of networks, cellular mobiles and telephone products.

It has also forged partnerships with several major telecoms organisations such as BT, Motorola, Panasonic and Avaya.

Interquartz, an importer and distributor of business telephones, is also based at the Bury HQ.

Mr McPherson said: "At October 31, 2002, Pennine's trading profits were just short of £400,000 for the year.

"Interquartz, too, is going from strength to strength.

"New accounts have been opened in a number of Middle East states, throughout the European Union, and in Russia and Eastern Europe.

"Combined turnover will be £9m and group profits should top £0.5M," he added.