However, this was short-lived as the markets remained fearful of the economic situation. In a dramatic bid to stimulate the economy, the Bank of England slashed interest rates to 3 per cent, its lowest level since 1955.

In addition, the European Central Bank lowered its rates to 3.25 per cent. These cuts came after a raft of weak economic data provided further evidence that UK and eurozone economies are sliding towards a recession.

Croda International, a world leader in natural-based speciality chemicals, released excellent figures for the third quarter ending September 30. The company stated that revenue had increased 25 per cent, to £246.7m, compared to the £197.1m achieved over the corresponding period last year. The Goole based company's pre-tax profits jump 73 per cent, to £24.6m.

AIM-listed Avacta Group, which engages in research, development and production of rapid response detection devises for the biopharmaceutical, healthcare and security sectors, reported that despite an increase in revenue, it has suffered a pre-tax loss of £1.6m for the year ending July 31, compared to a loss of £1.2m a year earlier. The group confirmed that its lead product, Optim, is expected to be launched in early 2009.

Pace, the designer and distributor of digital receivers and receiver decodes reported that the group had benefited from the emergence of high-definition television and the switch from analogue to digital broadcasting and as a result was on target to meet expectations for 2008.

The Saltaire-based company confirmed that demand for its products remained robust and anticipated that revenue growth would continue into 2009.

However, chief executive Neil Gaydon warned that despite the expected revenue growth, the recent strength of the US dollar would have a negative impact on next year's profitability as 95 per cent of the components used in the group's boxes were priced in dollars.

Spice, the Leeds-based provider of outsourced infrastructure support services to the utilities sector, announced that after receiving favourable performances within the group's electricity and energy markets, trading remained buoyant and in-line with management expectations for the period ending October 31.

It was also confirmed that following a £50m institutional placing, in September, the FTSE250-listed company's debt had been reduced substantially.

Findel, the UK home-shopping and educational supplies business, said in its trading update for the six-month period to September 30, that a particularly strong performance from its healthcare division had enabled the group to deliver a 1 per cent rise in sales over the same period last year.