Industrial engineering products distributor Brammer posted a 40% surge in full year pre-tax profit and said it plans to increase its dividend by 27.3%.
Profit before tax, pre amortisation and exceptional items, increased to £29m from £20.6m. The group plans to lift the full year dividend 27.3% to 8.4p, reflecting Brammer's confidence in the outlook for the business, it said.
The group, which supplies industrial belts, gearboxes and bearings, said total group revenue rose to £571.5m in the year ended 31 December 2011 from £468.4m in 2010. Around 17% of growth was driven by organic growth and 5.6% came from its acquisition of Buck & Hickman, which it bought last year.
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In a separate announcement the group confirmed that, after more than 10 years as chairman, David Dunn said he would not stand for re-election at the AGM in May. Non-executive director Bill Whiteley is expected to succeed David at the AGM.
Commenting on trading chairman David Dunn said, "We have continued to execute successfully our proven strategy to exploit Brammer's leadership position in the fragmented, pan-European, €40bn market that we address."
"2012 will be another economically challenging year but early trading has started well and we are deriving additional benefits from the acquisition of Buck & Hickman. The Board is confident that Brammer will make further significant progress during the course of the current year," he added.
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