THE company at the centre of a Euro-flag row in Maidstone has hiked profits by nearly 50 per cent.

Grosvenor Land, which recently re-launched The Industrial Centre in St Peter's Street as the Powerhub Business Centre, boosted pre-tax profits to £122,570.

Rental income went up by four per cent to £1.26 million.

The UK Independence Party recently accused the developer of "insulting" the people of Maidstone for flying three European Union flags over the building.

Grosvenor Land denied it was unpatriotic, insisting it had used the flags only because there were no Union Flags available at the time. However, the Powerhub is being promoted to French firms looking for a UK base.

Grosvenor Land chairman Phil Edmonds, the former Test cricketer, said: "We have made substantial progress with the re-launching of our business centre in Maidstone as The Powerhub.

"Our investment has been re-valued independently at £5,000,000, which shows a significant increase on our purchase costs. Lettings are up and we are seeing an increase in rental values together with a reduction in the non-recoverable costs.

"We have completed the first stage of a £500,000 major refurbishment programme and we will begin stage two in the next financial year which is expected to spread over two years or so."

Grosvenor Land wants to extend the Powerhub concept to other areas. But Mr Edmonds said it had been hampered by an inability to find suitable premises.

"We have been constantly looking for alternative sites and when we have identified the right opportunity that satisfies our investment criteria, we are in a position to act quickly," he said.

In spite of stock market instability, the company was "well-balanced to weather rough economic conditions."