Defence firm Umeco has seen profits fall by more than 12 per cent despite benefiting from a cost-cutting programme.
The Leamington Spa company saw pre-tax profits drop to £24.9 million in the year to March 31, compared to £28.5 million last year.
That came after a tiny fall in sales, from £410.9 million in 2009 to £409.4 million last year.
However, the company managed to cut its net debt by more than a third, to £79.6 million, and said its cost reduction programme had kept its balance sheet strong despite uncertain conditions.
Chief executive Clive Snowdon said: “Umeco has continued to perform creditably despite the difficult and uncertain conditions prevailing in our markets and the macro economic environment.
“We are weathering the effects of the economic downturn well and have significantly reduced our net debt through active working capital management and the restrictions on capital expenditure imposed during the year.
“We have a good order book, underpinned by expanding relationships with our key supply chain customers, and there is a strong pipeline of new business opportunities available to us across all our operating segments.
“Although trading conditions in our markets remain uncertain, the actions we have taken to reduce our cost base, and reduce debt, leave us strongly positioned. We continue to face a number of shorter term challenges, however the markets we serve are expected to demonstrate significant growth over the medium and long term.”