Andrews Sykes Group has reported a fall in full-year pretax profit having recorded a £142,000 loss on business disposals.
But the Wolverhampton group, which specialises in the hiring of portable heating and air conditioning equipment, said overall trading in the first quarter has been in line with expectations.
The company recorded a fall in pre-tax profit for the 52 weeks to December 31, 2006 of £13.80 million from £17.07 million earlier.
But turnover rose to £59.77 million from £55.19 million.
It said its principal UK trading subsidiary, Andrews Sykes Hire, performed well showing a 20 per cent growth at £43 million due to favourable weather conditions and business initiatives.
The company added is not recommending a final dividend this year.
Chairman Jacques Murray said: "I am very pleased to be able to report a record group operating profit from continuing operations of £14.9 million for 2006, which compares with £11.1 million last year.
"This improvement in trading is largely due to our dual strategies of aligning costs with sustainable revenues and focusing on the development of high margin niche markets.
"I remain confident that the current strategies being followed by management will continue to deliver satisfactory profit levels in the future.
"We will continue to contain our costs, to invest in both traditional and new products and to develop new market places when the opportunities arise in order to maximise the return on capital employed."
Mr Murray said the group would continue its strategy of containing costs and investing in its core products as well as environmentally friendly products.
He added: "Overall trading in the first quarter of 2007 was in line with expectations."