HIGH-end music system specialist Linn achieved a 21% hike in pre-tax profits to £2.19 million in its last financial year to June 30, as it enjoyed strong demand for its cutting-edge digital streaming (DS) players in tough economic conditions.

Gilad Tiefenbrun, managing director of East Renfrewshire-based Linn, revealed that Hollywood actor Michael Fassbender had purchased one of the company's DS music systems recently.

Linn, which is based at Waterfoot, enjoyed a 5% rise in turnover to £17.3m in the year to June. It employed 173 people at its June 30 year-end, Mr Tiefenbrun said, with the company having recruited "cautiously" in the last two or three years.

Linn said yesterday that its decision to exit the compact-disc player market nearly three years ago had "raised eyebrows in the industry". It added that its focus on high-resolution music downloads played back on Linn DS network music players had been "vindicated by these financial results".

Mr Tiefenbrun noted the value of Linn's sales of DS music players was now close to past peak annual sales of CD players.

He said: "Where we are with the streaming is up to where we were at the very peak of CD, and it is early days in streaming. We see tremendous potential with streaming. It is an area where there is actually growth. People moving from CD to streaming is still at the early stages."

He emphasised Linn's heavy investment in continuing development of its DS players. He said the company had invested £2.15m in research and development in the year to June 30.

Noting that Linn had started making DS music players in 2007, he added: "Because it is all our own technology, we are able to add into that with R&D."

He cited a new range launched in the last year which could play "sound from just about everything you can think of in the living room", including television, movies, and games as well as music, through HDMI (high-definition multimedia interface) connections.

Mr Tiefenbrun cited these DS players' compatibility with personal computers, iPods, iPads, and Android devices.

He said the typical price of a Linn system was between £5000 and £6000, with the starting price of a pure music-playing system about £1500.

Linn continues to make vinyl record players. Mr Tiefenbrun said this part of the firm's operations was "pretty stable" at 10% to 15% of the overall business.

Asked if he was pleased with Linn's performance given the economic backdrop, Mr Tiefenbrun replied: "I am absolutely delighted with these results.

"I think we are doing way better than anyone would have predicted. We are not immune to the conditions out there. It is driven by innovation.

"We have to stay at the absolute forefront. We have to be out there competing."

He added: "I think, overall, there isn't a huge amount of growth in the markets. We have to win market share. We just have to get used to having to fight like everyone else.

" You can't rely on there being some kind of miraculous upturn in the economy."

Mr Tiefenbrun highlighted the troubles in the eurozone, which he described as a "very significant market" for Linn.

He added: "We are just assuming things will stay the same. These are the market conditions, and we need to compete in the market we are in."

Linn also records music. Linn Records is home to artists including Carol Kidd, Claire Martin, and the Scottish Chamber Orchestra. Mr Tiefenbrun said Linn Records accounted for 5% to 6% of group turnover.

Gilad's father, Ivor, owns more than 60% of Linn. Ivor's brother, Marcus, has a minority stake. Ivor and Marcus's sister, Bessie, owns about 1.5% of the firm.