Chip maker Imagination more than triples profits

Graphics chip designer Imagination Technologies more than tripled its full-year pretax profit to £10.2m after it shipped 126m chips in smartphones, netbooks and set-top boxes.

The company, whose designs are used by Apple and Intel – both shareholders – said yesterday its pipeline of licensing prospects, growth in design wins and momentum in chip volumes gave it confidence about the year ahead.

It also predicted the number of devices sold using its chips would quadruple over the next five years.

Imagination, which also deploys its own technology in its loss-making PURE-branded digital radio business, reported a 26 per cent rise in group revenue to £80.9m in the year to the end of April and a 55 per cent rise in adjusted earnings per share to 7.3p.