The old phrase "where there's muck there's brass" rings true for a pioneering Bradford firm after profits increased by more than a third.

The Canal Road-based PM Group, which makes waste disposal equipment, reported pre-tax profits up 34 per cent to £1.58 million in the six months to the end of June, compared to £1.18 million last year. The results, which far exceeded market expectations, show turnover grew by 54 per cent to £15.5 million.

PM chief executive Geoff Mountain, who founded the firm in 1985, attributed "significant growth" to the waste re-cycling market.

"The Irish Government is making it compulsory for all householders to pay by weight for waste," said Mr Mountain.

"Ninety per cent of the systems are supplied by us along with the software. I think it's widely recognised that it's not a question of why or if it will happen in the UK but when. We suspect, following various government leaks, it could be within 18 months."

Mr Mountain said PM was well positioned to take advantage of changes in the law to promote recycling of waste.

"Most of the systems have been developed by us. We are now genuinely creating the fifth utility after gas, water, electricity and telecoms."

The PM group employs 120 people in Bradford and 150-plus in France, Ireland, Holland, Belgium and Germany. Among new initiatives is a manufacturing plant for wheelie bins in Bowling Back Lane which went into production three months ago.

Mr Mountain said the new activity could significantly boost the bottom line in the next financial period.

"We're investing serious money in the new systems," he said. "It certainly will affect the balance sheet next year.

"Obviously growing turnover by 54 per cent this time has been driven by legislation. We're fortunate that the law is forcing customers to use our equipment."