Andor Technology could be sitting on cash balances totalling more than £20 million thanks to a "period of strong cash generation" this year.

The west Belfast-based company, which manufactures high-performance scientific digital cameras, says its order book has strengthened and it is on the lookout for “strategic acquisition opportunities”.

In its latest trading statement released yesterday, Andor said it expected revenue for the six months to March 2013 to be ahead of the trailing six months’ performance. However, pre-tax profits are expected to be marginally behind the trailing figure because of “adjustments for the amortisation of acquired tangibles”.

Andor, one of only three listed companies in the North, reported record profit last year of £10 million for the 12 months to the end of September 2012.

It has warned that performance in the current financial year will be dependent on a number of factors, including the rate of order drawdowns by its OEM (original equipment manufacturer) customers.

Andor has also highlighted the potential impact that cuts in US government spending on research budgets could have on orders.

It said orders from existing OEM customers in the first six months of the year had played a key role in boosting Andor’s performance. It highlighted two significant orders during this period valued at $2.6 million and $2.1 million respectively as a signal of its customers’ commitment.

The company said it was also hopeful that draw-down against the OEM order book, which was less than expected in the first half, would improve during the second half of the year.

Andor said it remained focused on initiatives that it believed would “deliver growth over the longer term”.