West Bromwich-based Tricorn Group has posted a record set of preliminary results with revenue up by 14 per cent over the year ended March 31 2012.
The strong performance has prompted the manufacturer and specialist manipulator of pipe and tubing assemblies in the energy & utilities, transportation, and aerospace sectors to recommend doubling its full year dividend to 0.2p.
With facilities in the UK and China, Tricorn employs more than 300 employees and operates through the brands MTC, Redman Fittings, Maxpower and RMDG Aerospace.
The group’s operating profit margin was up 31 per cent and adjusted earnings per share up 47 per cent to 3.78p.
The company turned over just under £25 million compared to just under £22 million in 2011.
Profit before tax totalled more than £1.6 million compared to just over £1 million in 2011 and the operating profit margin was 7.2 per cent up from 5.5 per cent.
Chief executive Mike Welburn said: “We have some big name customers like Caterpillar, JLR, Rolls Royce and JCB - niche markets that combine some strong margins.
“They are a record set of results.”
Mr Welburn said the company was very positive about its future prospects and added that its Chinese manufacturing facility was on track to be up and running later this year.
“We have made good progress in securing new business,” he said. “We are going to be setting up a new manufacturing facility in China to capitalise on the growing market out there. We have now got the facility, got the general manager and will be operational by the end of this year and earning money in 2013.
“We are aligned with major global OEMs and will continue to make good progress in China.
“I am optimistic about the mid-term growth opportunities and we are confident of making further progress over the current year.
“Aerospace is particularly well positioned. That business has returned to profitability this year.
“There is a fair level of momentum in the results already and an opportunity for further growth for us.”
Finance director Phil Lee said: “We have strengthened the balance sheet and doubled the dividend payout. Revenue was up by 14 per cent and we saw improvements across all our business segments.”