TECHNOLOGY company Zytronic has announced increased half-year profits after benefiting from the growth of the overseas gaming industry and an investment at its site in Blaydon.

The firm has become a leading specialist manufacturer of touch sensors and optical filters for electronic displays, with its Zypos touch screens used in everything from digital betting terminals to cash machines.

The firm, which employs around 200 staff, saw its sales increase by 11% to £9.1m in the six months ended March 31 2011, with its pre-tax profits also up by 19% to £1.3m during the period.

The company, which also provides microchip sets for other manufacturers, said that the touch screens now represented 66% of its sales, up from 56% at this point last year, with a large proportion of the products shipped to Las Vegas casinos.

It now expects further growth with the help of a contract with soft drinks firm Coca-Cola, to supply screens for its Freestyle drinks dispensers in the US, and is currently working with homeware firm Bosch to develop a new range of induction cooker tops.

The firm also invested £500,000 in its factory during the six month period, which included adding two industrial laminating machines to the site, which will allow it to become more efficient.

The new laminators have also allowed the firm to increase its production of larger 32ins to 65ins touch sensors required to service the digital signage and vending markets.

Chief executive Mark Cambridge said: “Although we have been making touch screens for the gaming industry for a number of years now, the market is now beginning to show some real growth, particularly in Las Vegas, where the adoption of digital technology has replaced the need for chips in many cases.

“As well as continuing to grow our market share in the gaming arena, we are also seeing promising growth in other markets.”

The firm’s products have been designed to be more robust than many of the touch screens currently available, making them more suitable for use in areas such as ATMs, self-service and vending machines, ticketing and parking and industrial automation.

Tudor Davies, who replaced David Banks as chairman of the firm in March this year, said: “The increasing acceptance of our touch sensors across an expanding number of geographic regions and applications, and the current healthy inflow of orders, provides a good platform for continuing growth and shareholder value.”