Shares in consultancy AEA Technology rose by 5% yesterday after the company revealed it is on track to post turnover of £82m this year, up 9% on 2007.

The rise was less than many analysts' expectations and was blamed on delays in the awarding of some government contracts.

The company, which has 50 of its 750 staff located in Glengarnock in Ayrshire and is increasingly focusing on environmental projects, said yesterday that it is continuing with its strategy to expand its work in the private sector and international markets in addition to its work with the UK government.

"The growing burden of regulation is continuing to drive those new markets, particularly as governments seek to transfer the cost of regulation from the public to the private sector. This is creating real opportunity for AEA, particularly in the EU, US and China," it said in a statement to the stock exchange.

The company is on the look-out for bolt-on acquisitions in the UK to give it access to specialist technologies and is also keen to buy a company to give it a presence in the US market.

AEA said yesterday that it continues to improve its financial position and that its net debt is now £20.8m, compared to £29.4m a year ago.

The shares rose 3.75p to close at 82.75p.