Silk Industries Plc, the designer, manufacturer and importer of silk fabrics for neckwear and fashion, returned to profit in the year to 30 April as the move away from casual dressing in the workplace resulted in a strong recovery in the shirt and tie markets. But the company cautioned its long-term outlook is dependent on the American market.

For the full year the firm reported a pre-tax profit of £1.06 million, compared with a pre-tax loss of 1.1 million last year. Turnover was £12.2 million, up from 11.2 million.

Demand for the group's luxury products is as strong as ever, said chairman David Tooth.

During the current year the weaving and the print divisions will be making significant investments in capital equipment to ensure technology is up to date, and to improve manufacturing efficiencies and increase capacity.