Industrial fasteners and facilities management company Haden MacLellan is believed to be looking to buy a major foreign fasteners business to lessen its dependence on the UK.
The company this week recorded half-year pre-tax profits down from £6.7m to £200,000 on turnover up 17%, at £265.7m. However, operating profits, before an £8.3m write-back for goodwill, were up 14%, from £7.3m to £8.3m.
The fasteners business increased profits by 33%, including a contribution from Birmingham-based distributor MBS Distribution, acquired in March.
However, chairman Roger Leverton said growth in the fastener manufacturing business had been impacted by a reduction in domestic UK and export demand.
He said the company expects to compensate for this by rationalisation of some of its manufacturing facilities early next year and capital investment in new machinery. Further acquisitions are also likely.