Malvern-based manufacturer Tricorn is to recommend the payment of an increased dividend following a successful year of trading.
The pledge came as the tube manipulation specialist announced its pre-close trading update for the financial year to the end of March.
The engineering group said it had “made significant progress” over the last 12 months in “developing its capability as a global tube solutions provider”.
Developments include the establishment of a new wholly owned manufacturing facility in China and the acquisition of a tubular products manufacturing business in the USA; both of which have been funded by the group’s own cash resources.
It added that both developments were condusive to further growth globally.
In a statement the firm said: “These strategic advances create a very high quality global sourcing, manufacturing and supply business capable of considerable growth in its niche markets worldwide.”
Tricorn, which employs around 400 people and has five manufacturing facilities; in China, the USA and the UK, operates through five brands MTC, Redman Fittings, Maxpower, RMDG Aerospace and Franklin Tubular Products.
The firm has made its first product shipments from its Chinese facility less than a year after it announced its intention to expand in the region.
In March the group acquired the trade and certain assets of the former Whitley Products for £1.95m in the US. A new company was formed, Franklin Tubular Products, comprising the facility in North Carolina and plant and equipment from an Indiana facility.
The firm said full year year PBT, excluding China start up costs and the US acquisition costs, will be at similar levels to the previous year and in line with earlier indications.
It added: “In the aerospace division revenue will be ahead of the previous year. The business has a healthy pipeline of new business opportunities and has already been successful on a number of new packages of work. The division is awaiting feedback on a number of other quotations.
“Given the continued strong performance of the group, the board will be recommending the payment of a final dividend increased on 2012 as part of its progressive dividend policy. Further details on this and current trading will be given with our full year preliminary results which are scheduled to be released on June 4.”
