Umeco - the West Midlands-based aerospace group which lists both Airbus and arch-rival Boeing among its customers - is weighing up a number of acquisition opportunities and is thought to be close to completing a deal in the US valued at about $55 million for a composites company.
Another, potentially even larger deal, for a US components firm is also on the cards.
And the Leamington Spa-based group, which raised £48.4 million via a rights issue last December, is also eyeing another potential acquisition in the Far East.
"We are looking at a number of opportunities and I would expect to be in a position to announce something within the next two to three months," group chief executive Clive Snowdon said yesterday.
"The civil aerospace market, our principal sector, has continued its recovery during 2005, with build rates for new aircraft expected to continue to rise over the medium term.
"In addition, global demand for our advanced composite materials has continued to increase at a rapid rate during the year, especially in the aerospace, wind energy and upper-end automotive markets."
Umeco, which makes precision components for use in the aerospace and automotive industries, has already snapped up three complementary bolt-on deals - Provest, a Milan-based components firm, Aviation Windings and Aeromedic Innovations - and together with investment in China and new production facilities in the Derby area the group has spent around a third of the rights proceeds.
"We're extending our presence into China and the Far East," said Mr Snowdon.
The group also said its forward order book at the end of March stood at a record £143.8 million. Orders are being driven by the civil aviation market where Boeing and Airbus have announced substantial increases in build rates. Umeco also announced a sharp rise in profitability with pretax profits for the year to March up by 34 per cent to £18.1 million, around £1 million higher than analysts were looking for.
Total turnover was up by 21 per cent at £293.2 million.
Earnings per share were 30.9 pence compared to 25.2 pence, an increase of 23 per cent after adjusting for the rights issue.
The group is raising the total dividend from 13.25 pence to 14.50 pence a share. Last week, Umeco announced a three-year extension to its contract with British Airways to supply inflight first-aid kits.
On Monday Umeco unveiled a strengthening of its relationship with Formula 1 racing group McLaren with the acquisition of a small components supplier in South Africa for £1.5 million.
Shares in the group closed up 3p at 477.5.