Black Country engineering group Castings said high demand boosted turnover and pushed profits up by 27 per cent in the first half of the year.
Pre-tax profits in the six months to September 30 rose to £6.27 million compared to £4.93 million last time.
Turnover increased to £45.8 million, up from £38.9 million at the same point last year, partly due to it recovering the increased cost of raw materials and energy from customers.
But chairman Brian Cooke said the group was still enjoying high demand for both its casting and machined products.
As a result, underlying turnover was up 13.9 per cent.All three companies in the group - Castings at Brownhills, William Lee in Derbyshire and CNC Speedwell at Lichfield - had enjoyed good trading over the last six months.
Mr Cooke said: “There are signs this high demand will continue into the foreseeable future.”
The company is currently spending £11 million on increasing foundry capacity at William Lee by 20 per cent.
The new moulding line is expected to be ready for production in early 2009, creating up to 80 new jobs.
Castings said it was increasing the interim dividend payout to 2.71p per share from 2.58p a year ago.
The success at the foundry and machining group builds on its successful turnaround earlier this year, reversing poor half time performance in 2006
In November shares in Castings fell sharply to around 240p after it revealed a drop in half-year profits and issued a warning about its full year performance.
At the time Brian Cooke blamed spiralling energy and material costs.
Following yesterday’s announcement, shares were up eight per cent to 290p.
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