Domestic and General said it expected further “steady growth” as it reported increasing profits.

The group reported that operating profits improved by 41.2% to £13.7m in its six months ending 30 September 2004, compared with £9.7m in the same period last year.

It said total profit of ordinary share activities had increased from £11.4m in the six months ending 30 September 2003 to £13.8m in the same period this year.

Rising profits, it said, had affected its interim dividend share, which increased from 7.46p in 2003 to 8.50p in 2004.

Group chairman Nicholas Rochez said the firm was “confident of further profitable development for the group”.