Automotive components maker Wagon has warned of "challenging" times ahead with reduced production among many of its automotive customers.
The company saw sales drop last year as the consequences of lower orders two years ago filtered through.
But the firm, which has its head office at the Birmingham Business Park in Solihull, said the current industrial dispute over the closure of Peugeot's UK manufacturing facility at Ryton, in Coventry, would not have any major impact on future revenues or profitability of the group.
Peugeot accounts for around 25 per cent of Wagon's OEM revenues.
Wagon's group finance director Richard Cotton said the closure of the Ryton plant which had been "widely antic-ipated" by the automotive industry, was "unlikely" to have any significant impact on the group.
The shift reduction by Vauxhall at Ellesmere Port would have no effect on Wagon, he added.
He said: "We knew the Peugeot 206 was going to be phased out, but we'll be supplying parts for the 207 model."
Wagon, which earlier this year completed the reverse takeover of French auto-parts maker Oxford Automotive, has recently been feeling the pinch as the major OEM's have been cutting back on their production volumes.
Mr Cotton said order intake last year had remained strong in the first two months of 2006-07.
He said: "We'll be looking to maintain our order momentum and protect margins through further efficiencies and a quick integration of the Oxford Automotive business.
"Last year we achieved a margin of 5.2 per cent which is testament to the processes we brought in."
Wagon is also pushing ahead with a restructuring of its original business and is in negotiations with unions over duplication and overlaps in its existing plants.
"We're moving very fast on our reorganisation programme. While the current year will be challenging, the strategic benefits of the Oxford acquisition, coupled with the benefits of a higher order intake, mean we're still confident about our longer-term prospects," said Mr Cotton, speaking after the company reported its full year results.
In the year to March 2006, the company which now employs 7,600 people, saw pretax profits increased from £1.1 million to £14.3 million despite a fall in sales from £455.5 million to £417.2 million.
But on an underlying basis, before MG Rover costs, restructuring costs, loss on disposal of operations, goodwill impairment and amounts written off investments, profits dipped from £19.7 million to £17 million.
Wagon also said it was pursuing the sale of five low-tonnage stamping plants, which include three in France and the sites in Tyseley, Birmingham, and Wantage, Oxford.
The Tyseley plant, which employs 140 people and makes stamped parts for the Mini, had enjoyed a dramatic performance turnaround following the impact of the MG Rover closure in April 2005 and was making "solid" progress, Wagon said.
