Brammer (LSE: BRAM.L - news) , often called the "RAC of manufacturing", has posted a strong increase in profits as its customers attempt to save money in the downturn.
The company, which supplies equipment including ball bearings to factories as well maintaining specialist machinery, increased its turnover thanks to improving its market share.
Brammer reported revenues of £572m, up 22pc, with operating margins up from 4.9pc to a record high of 5.6pc for the year ending December 31. Pre-tax profits increased from £19.3m to £24.5m.
The Manchester-based company said its impressive performance had come from promising customers they could cut their operating costs during the economic squeeze. It said it was confident of gaining more share in what was a very fragmented market. Brammer has just 2pc of the European market.
New customers secured in 2011 included EDF Energy, Tata Steel and BAE Systems (LSE: BA.L - news) , as well as working more heavily with food companies such as Kraft in Eastern Europe (Chicago Options: ^REURUSD - news) .
It said its acquisition of Back & Hickman, a power tool company, last year had been a success and it had already generated £26.5m of turnover and £0.9m of operating profit.
Analysts at Investec (Frankfurt: A0J32R - news) said: "The company has delivered another year of good growth combined with a number of new contract wins and operational improvements, which we believe bodes well for future profitable growth despite the macroeconomic headwinds in Europe."
A final dividend of 5.7p, up from 4.5p last year, will be paid on July 3.
The shares rose 15½ to 304½p.
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