P rice hikes from two suppliers of heat exchanger cores dented Expamet’s profits by £500,000 last year, but the building and industrial components group still managed a 21% increase in pre-tax profits to £11.8m.
Sales grew 8% to £119.5m.
Phil Reeder, chief executive, said margins at its Olaer operation were hit when both of its suppliers of heat exchanger cores, one in the US and one in Denmark, raised prices by about 18%.
Olaer has now found new suppliers, in Germany and China, which should bring costs back down to early 1998 levels.
Expamet has up to £30m to spend on acquisitions which could come within either its building or industrial divisions. The latter specialises in hydraulic bladder accumulators.