Insider Media Limited

Industrial equipment supplier Cromwell Group Holdings is planning to grow its overseas operations and is considering further acquisitions after securing an operating profit of £17.7m at its latest year-end. The Leicester-based company said that "record" sales were achieved in the month of November.

Cromwell, which supplies tools, safety equipment and furniture, grew its operating profit by more than £8m in the year to 31 August from £9.5m.

Turnover also increased by 16 per cent to £223.8m over the 12 months.

The company bought Cambridge Tools and Australian tool maker Comag PTY during the year, the latter providing "a further investment" into Australasia.

Cromwell added that it planned to grow further overseas by acquisition and establishing operations in new territories.

The company's five directors said that the "extensive and competitively priced product offering and complete supply solutions" has allowed the group to capture a greater share of the market.

Cromwell provides products for the food, fabrication, engineering and manufacturing sectors. It also supplies brand name tools such as Bosch and Kobe.

As well as being boosted by the two acquisitions, Cromwell also opened a new warehouse during the last financial year.

Trading into 2011/12 has also continued to grow, said the company, with "record" sales achieved in November.

On the back of the positive set of results, Cromwell said it would continue to grow both overseas and in the UK.

Directors paid out a dividend of £200,000 at the year-end; a marked drop on its 2010 payout of £500,000.

Cromwell employs about 1,730 people across its companies. It operates from 56 distribution centres.

Derivation of turnover remained broadly the same as the previous year; the majority (£195.6m) was brought in from the UK, with Asia Pacific the second most dominant market (£10.5m).

Europe and Africa brought in £8.8m and £5.8m respectively, while the remainder of the company's turnover came from Australia, the Middle East and America.