TWO innovative York firms received prestigious Royal honours today.

The Salamander Organization Ltd and the Yorktest Group have both received Queen's Awards for Enterprise 2004.

It was the first time in at least five years that the Queen had honoured the city's businesses for innovation. The two companies were among just seven in the region which were recognised by the award scheme.

Based at York Science Park, The Salamander Organization was given the award for the continuous innovation, development and application of its Transformational Lifecycle and Technologies.

The software development company, which employs 32 staff, uses software to develop and transform businesses, making them more efficient.

One of its key products is the Knowledge Map, to help organisations visualise their knowledge assets and connect them to people, processes and systems.

The business supplied a computer software package, known as MooD, to the British military and United Nations Partnership to help them carry out their work in the war-torn Balkans.

The package is a PC-based modelling tool, which allows business people to describe their organisation with the use of computer print outs and graphics.

Dick Whittington, managing partner of Salamander, said: "We are delighted at this recognition of our role helping organisations to address the big challenges in modern business around performance, process and knowledge."

This is the firm's third award in as many years. Last year they received the DTI Smart Award for innovation and the year before they received the IEE (Institution of Electrical Engineers) Innovation Award.

Yorktest Group employs 42 people at its laboratory in Murton Way, Osbaldwick, and at its offices in Bishopthorpe, York.

It was given the award for its development of innovative testing services for personal health.

Under its former name, York Nutritional Laboratories, the venture won the 1999 Evening Press Business of the Year.

The firm's products, which have been undergoing encouraging clinical trials, allow people to test themselves for food allergies and intolerances and coeliac disease by taking a finger-prick blood sample. The sample is then tested using advanced technology at Yorktest's laboratory.

Among its thousands of users is Sir Bernard Ingham, former press secretary to ex-premier Margaret Thatcher, who regularly publicises the company.

The firm also recently developed the world's first homocysteine home test equipment for heart risk through arterial damage.

Known as "Heart in the Box" tests, the equipment was this month accepted for sale at all 1,420 Lloyds pharmacies in the UK.

John Graham, chief executive of Yorktest, which was named in the Sunday Times Top 100 fast track firms in the UK three months ago, said: "I've been looking through the records and not one York firm has been honoured for innovation in the Queens Awards in the last five years.

"Now there are two. That says something for the new entrepreneurial spirit in the city.

"It's a tremendous honour for our staff and a real stamp of approval for our efforts to ensure that health begins at home."

Only 39 firms in the country received Queens Awards for innovation. In total, 112 Queens Awards were given.

Updated: 10:57 Wednesday, April 21, 2004