Pretax profits at engineering firm Titan Europe went up by nearly a quarter last year with more expected from acquisitions and overseas ventures.
The Kidderminster company, which makes off-highway wheels and undercarriages for the construction and agricultural markets, added its trading so far in 2006 was in line with expectations.
In the 12 months to December 31 Titan increased pretax profits by 23.1 per cent to £8.9 million, on sales 19.4 per cent ahead at £127.9 million.
This included £500,000 from Titan Wheel and Rims Engineering, which was acquired in October, and the first full year of turnover for Titan Andy's Australia at £6.5 million, up from £2.1 million in 2004.
But there was no contribution from its Turkish joint venture set up in September or ITM, the Italian firm it acquired in a £70 million takeover at the end of December.
However, the increase in turnover has been significantly impacted by price increases necessitated by rising material prices, Titan said.
Company secretary Vince Wicks said: "Last year went very well. We did everything we said we would and you cannot ask for more than that.
"There was an increase in steel prices, but we were able to pass that on because everyone understood. There is a slight reduction in steel prices at the moment, but we do expect them to go up in the second half of this year. None of these figures included our Turkish joint venture, only a little of Wheel and Rims in Australia and nothing from our big acquisition ITM.
"Wheel and Rims only contributed £500,000 last year which is nothing really. We will see the full benefits of these acquisitions next year."
Mr Wicks said Titan was still looking at further acquisition opportunities, adding: "There are other irons in the fire for this year.
"We are looking at other companies, probably overseas. Constant expansion is the aim to build the bottom line."
Titan, which employs 370 people in Kidderminster, already has facilities in Italy, where more than 600 of its 1,300 employees are based, with the balance split between the
UK, France, Australia and Germany. It is also building a presence in markets such as India and Turkey.
Chief executive Mike Akers said: "The combination of Titan Europe and ITM Group has created a global specialist manufacturer of both track and wheels vehicle movement systems which will provide significant benefits in serving our global international customer base as well as providing additional sales expansion opportunities and after-market distribution in both new and exiting markets.
"The mining and construction markets continue to look strong and our order books for these sectors are at levels which suggest trends seen in 2005 continuing."