Solihull manufacturer Hill & Smith Holdings has posted a five per cent rise in pre-tax profits despite falling sales.
The galvanizing-to-construction products form saw sales fir the first half of the year fall 1.7 per cent to £193.5 million, but managed to increased profits from £20.5 million in the same period last year to £21.5 million.
The company had to announce a raft of redundancies last year in the face of falling demand, but in a statement it said it was confident about the longer term.
Chief executive Derek Muir said, “The performance in the period continues to demonstrate the benefits of the niche market positioning and widening geographical spread of the group’s businesses.”
Net debt reduced by £11.2 million to £76.4 million across the year, and operating margins improved to 12.1 per cent.
Mr Muir said this work had opened the doors to a plan to seek takeovers.
He added: “The significant reduction in indebtedness over the past 18 months will facilitate development of the group’s strategy of targeting growth through acquisitions.”