The boss of Trifast said the fastener maker had never been better positioned for growth as he described the company's full year results.
Despite pretax profits dipping from £6.14 million to £2.55 million in the year to March 31, chief executive Jim Barker was in an upbeat mood.
He described the fall as a result of synergies arising from the £17 million acquisition of Serco Ryan, which were one offs and would not be repeated.
Operating profit before good will, amortisation, restructuring costs and one off profits from property sales rose from £6.05 million to £6.26 million during the period.
Turnover rose from £103.82 million to £117.28 million at the company which employs 110 people at its Midlands distribution hub at Wednesbury and 90 at another site at Hartle-bury near Kidderminster.
Mr Barker said: "This has been a year of significant change and development with new structures, new markets and overall a positive outlook.
"We are really pleased with how the year has developed and encouraged at how the takeover of Serco has gone.
"The takeover is nearly complete. We only have the IT system outstanding and that will be done by September."
Mr Barker said the company was enjoying a lot of success in Asia, where sales had increased by 22 per cent to £21.5 million.
China saw an even bigger leap, with sales up by 70 per cent, helped by setting up a factory in Suzhou, which employs 200 people.
He said: "Most of the fasteners produced there are for the Chinese market, which is growing rapidly, but some is exported back to the Europe."
The company also has a sites in Taiwan, Malaysia and Singapore, where is specialises in high tech fasteners which are used in the IT industry.
Just before the end of the year Trifast also completed the acquisition of Keba Fastening, based in Turkey, for £1.2 million.
Mr Barker said there was the possibility of new factories being opened in Turkey to service the Middle East and Eastern Europe markets although Keba is not anticipated to make a contribution to the group until 2007.
He added the Serco acquisition broadened the base of the company by giving it a presence in new markets like construction, boat building and railways.
All of these were unlikely to be offshored to overseas locations from the UK, Mr Barker added.
Product development was also constant in the UK, with Trifast's products being used in cash machines, computers and surgery.
Mr Barker added great emphasis was being placed on training and development, with a sales academy developing the skills of former warehousing and manufacturing staff in the UK.
"We now employ more people than ever in the UK - around 600 - and we see the Midland operations as really important parts of our business.
"We have never been better positioned for future growth. We have got the best people and the best ideas. We have got global coverage and most of our competitors are fairly weak."
Analyst forecasts for full year pretax profits in 2007 are in the range of £8.8 million to £8.6 million.
Mr Barker said: "Although it is still early, the year has started well.
"In the first ten weeks of the new financial year I am pleased to report that whereas markets remain competitive and raw material price pressures continue, the group is in line with expectations."