Another "satisfactory" year's trading is in prospect at the restructured Barlo radiator and plastics group following a year in which the group lifted pre-tax profits 24 per cent to a record £8.5 million on a 23 per cent improvement in turnover to £138 million. Group chief executive Tony Mullins, commenting on group results for the year to end March, says that Barlo is planning to expand its sheet plastics and radiator activities in mainland Europe.

During the year Barlo was restructured into two principal operating divisions, panel radiators and sheet plastics, with integrated management teams. This year over 50 per cent of revenue is expected to flow from operations in Europe, some 30 per cent from the UK, with the domestic market generating the remainder.

Barlo is a strong cash generator - last year cash flow surged 56 per cent to £16.8 million. Margins also improved and the surge in profitability lifted earnings per share to 4.77p. Shareholders will receive improved total dividends of 1.25p a share.