Pre-tax profits at radiator and plastics group Barlo rose by 24 per cent to a record £8.5 million for the year to end March. Turnover was 23 per cent higher at £138 million. Group chief executive, Mr Tony Mullins, described the outlook as favourable, due to improving economic activity in most mainland European markets, strong domestic markets and stable UK markets.

We are "looking forward with confidence to another satisfactory year", he said. The past year marked the end of a period of consolidation because of difficult trading conditions in continental Europe and adverse currency movements, he said. After two plastics acquisitions in 1997, Barlo plans to expand its sheet plastics and radiator activities in mainland Europe. In the current year, over 50 per cent of revenue (up from 42 per cent) is expected to come from mainland Europe, about 30 per cent from the UK, with the balance from the domestic market.

Profits after tax and earnings per share rose 27 per cent to £8.2 million and 4.77p, helped by a lower interest charge. Shareholders are to get a final dividend of 0.8p per share, bringing the total dividend for the year to 1.25p per share, from 1.15p.

By year end the group's gearing - debt as a percentage of shareholders funds - was down to 17.5 per cent from 21 per cent, despite two acquisitions during the year, namely Resart and Critesa, at a total cost of £6.4 million. Made in November 1997, the acquisitions are now integrated into the plastics sheet division.

During the year Barlo was restructured into two main operating divisions with integrated management teams - the panel radiator activities divisions and the sheet plastics division.

The results show that turnover from continuing operations increased by 6.7 per cent to £120 million, while new acquisitions added £18.5 million to bring group turnover to £138.4 million. The radiator division, comprising the Barlo and Veha operations in Ireland, the UK and Belgium, contributed just over half of group turnover at £70.9 million, up from £62 million. Turnover at the sheet plastics division, which manufactures in four locations in mainland Europe, rose to £39 million from £23.3 million. Turnover of £80 million is forecast for the current year. Irish Ropes had a satisfactory year, according to Mr Mullins, with future profit growth expected this year. Barlo packaging achieved "its planned profit", despite being hit by the strength of sterling, he said.

Group operating profits were 15 per cent ahead at £9.7 million, with a contribution of £33,000 from the acquisitions for a four month period. Operating margins in existing businesses improved from 7.5 per cent to 8.1 per cent but the contribution from acquisitions was marginal on their £18.5 million turnover.

The results show strong generation of cash from operations, with net cash flow up 56 per cent to £16.8 million.