UK biotechnology and healthcare group Amersham has reported a 27% fall in full-year pre-tax profits, but nevertheless pleased investors who had prepared themselves for worse news.

The company, which will shortly be acquired by US multinational GE for $5.7 billion, saw pre-tax profits fall from $264 million in 2002 to $192 million for 2003.

Amersham sales were marginally up 6% to £1.65 billion while operating profits were also up 12% to £299 million, but the effect of the weak US dollar and a £58 million restructuring programme took its toll on the company's margins.

Chief executive Sir William Castell indicated that the company had not panicked in the face of a difficult period, commenting: "Our strong results in the second half of 2003 reflect unwavering focus on our business fundamentals."

Discounting the exchange rate fluctuations which cut £39 million off pre-tax profits, Amersham businesses performed well, with its medical diagnostics sales leading the way with an 11% sales increase to £788 million.

"We continued to expand sales of our patented medical diagnostics at an excellent rate; delivered stronger second half growth in protein separations, moved discovery systems into profit in the second half and delivered improved underlying margins for Amersham," Mr Castell added.

Mr Castell and his new boss, GE chief executive Jeffrey Immelt say they share a vision of the new "GE Healthcare"combining expertise in diagnostics, biology, engineering and informatics to provide medical diagnosis and treatment more tailored to the needs of individual patients.

"By focusing the scale, brand and competencies of the combined businesses on improved diagnosis, we will have an excellent opportunity to transform global healthcare ensuring a better quality of life for the individual and a more cost effective delivery for payers and providers," Mr Castell said.

Completion of the acquisition remains subject to shareholder and High Court approval but is expected to go ahead in April.