CAITHNESS Glass has increased its North of Scotland workforce by 20% since its takeover five months ago by Royal Doulton. The 20 new jobs at Wick, together with an investment programme at the company's headquarters in Perth, mark the latest phase of expansion, managing director Alistair Mair said yesterday.

The #5.5m acquisition by Royal Doulton at the end of October 1996 was expected to enhance distribution of the Scottish company's holloware, made in Wick, and paperweights, made in Perth. It employs 100 people at each site while less than 10% of turnover is sold internationally.

Mr Mair, who has led the company through two management buy-outs and two sales since 1984, said: ''We are already shipping into about 50 additional Royal Doulton rooms in department stores.

''This is the start and we are looking forward to developing the connection.''

In due course, more glassware would reach Canada, the US, Japan and Australia through the Doulton companies: ''We will be expanding our business in England, which has been and will be our main market.''

The group declared its confidence ''that Royal Doulton can help Caithness grow profitably both in the UK and overseas.''

The acquisition of Caithness Glass, which made #555,000 on sales of #8m in its last stand-alone year, helped boost Royal Doulton's pre-tax profits by #2.4m to #17.6m, a rise of 15.7%. The group reported strong sales growth in Japan and Australia, helped by the acquisition of the other 50% of its Japanese distribution company and investment in concession outlets in a major department store chain.

Royal Doulton has made a string of investments since floating on the Stock Exchange three years ago, including buying a manufacturing facility in Indonesia and expanding the international network of in-store concession departments.

It also bought Holland Studio Craft, a manufacturer of hand-painted sculptured pieces, for #1m, which after 11 months has ''shown the expected improvement''.

Continuing operations in the UK and US had faced a ''lack of buoyancy in consumer spending'', the group said. It reported growth in the supply of own-label tableware to the UK multiple chainstore sector, but reduced profits from the Lawleys-by-Post direct marketing business. Sales have begun to pick up at home in 1997, though overseas is less buoyant.

Licensing is growing in importance. Bunnykins, a Royal Doulton intellectual property, led a successful year in generating licensing income, which is expected to make a growing contribution to profits.

Earnings per share (adjusted) were up by 21.9% and the dividend up by 13.5% to 9.65p.