Hand and power tool manufacturer Record is on course to continue its policy of snapping up more struggling but famous name companies by the end of the year.
Recent acquisitions of Bulldog and Startrite took its toll last year, but the company still achieved margins of 10%. This was despite the strong pound which put pressure on prices overseas – business which accounts for 47% of turnover.
Record stepped up sales by 10% to £44.9m, pre-tax profits were up by 19% to £3.5m, and earnings by 20% to 6.4p. This performance merited a dividend increase of 0.15p to 3.75p, for the first time since 1990.
House stockbroker Panmure Gordon forecasts £4m pre-tax this year.
The toll of the newcomers will be much less in 1997. Agricultural and construction tools maker Bulldog is now back to profits, and bandsaw machines maker Startrite should be out of the red by the year end.
By then there could be further additions to the company, again probably of well-known but troubled names.