Associated British Ports - owner of the Hams Hall distribution complex near Coleshill - yesterday said annual profits had inched higher after new long-term contracts helped it weather tough economic conditions.
AB Ports, which handles about a quarter of Britain's seaborne trade, tipped substantially higher growth this year.
"You could say 2005 was an average growth year, but this year that growth rate will increase and increase substantially," said chief executive Bo Lerenius.
AB Ports said underlying pretax profit before exceptional items for the year ended December 31 was £132.3 million, up from £130.2 million a year ago.
The result compared with consensus market forecasts of £131 million.
AB Ports shares have gained about 20 per cent since November after a takeover battle for P&O boosted most ports stocks.
Long-term contracts from blue-chip companies and two new port facilities at Immingham would drive growth this year, AB Ports said.
Mr Lerenius said a weak UK retail sector had hurt container growth in 2005. The group has sold £220 million of non-core properties since 2000 and has targeted a further £30 million in sales Mr Lerenius said there would be opportunities to sell more land in future, but it would not be a major part of the group's future strategy.
UK ports have been tipped as potential takeover targets since Dubai Ports World spent £3.86 billion buying UK ports and ferries firm P&O. AB Ports said it was not aware of any potential suitors.
"We have not had anyone approach us. What is happening in the sector is rather positive. There is an acceptance of the right valuation of port assets - they are pretty valuable assets," it stated.
Mr Lerenius added: "I can't spend my time speculating, my task is to run the company to increase the shareholders' value and make money for them. For me it's business as usual."
JP Morgan said the 2005 results represented a lull in profit growth, but predicted stronger growth in 2006 and into 2007.
Elsewhere, Dresdner Kleinwort Wasserstein said that 2006 should see an acceleration of ABP's core UK ports and transport profits. It pointed out the slower rate of growth in container terminal profits looked set to persist for a while, but saw further scope for new projects, the possible disposal of the US activities and share repurchases.
Two major investment projects will come on stream in the second quarter - a £27.5 million roll-on/roll-off facility at the Port of Immingham and a £59.5 million extension of the Humber International Terminal.
Overall UK cargo volumes rose 4.3 per cent to 134.8 million tonnes, with growth in coal, iron ore and other bulk imports, cruise-ship calls and agribulk and steel exports.
