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(Sharecast News) - MS International reported another record year on Monday, with pre-tax profit rising to 20.05m from 15.71m and revenue increasing to 117.5m from 109.58m for the year ended April.
Basic earnings per share climbed to 90p, up from 71p.
The AIM-traded group's balance sheet remained strong, ending the year with 27.78m in cash, although that was lower than the 42.68m it recorded a year earlier.
It said its defence and security division now accounted for 70% of group turnover, driven by record export sales of naval weapon systems, including continued deliveries to the US Navy and first deliveries to the German Navy.
The division also saw strong demand from the Middle East for its land-based counter-drone systems.
It said the order book was marginally lower due to delays in government defence procurement, but the group said medium- and long-term prospects were stronger than ever.
The forgings division meanwhile recovered strongly in the second half after a weak start caused by oversupply in the forklift market.
Overseas operations in the US and Brazil both performed well and are benefiting from tariff dynamics and local demand.
The petrol station superstructures division maintained its dominant position in the UK, completing several major fuel and convenience hubs, including EV infrastructure.
However, demand remained depressed in Eastern Europe due to the war in Ukraine.
The corporate branding division delivered a strong performance in the UK, while the Netherlands business, having been restructured, was expected to return to profitability.
"Given the growth of our defence and security division, and its medium and long term prospects, we have decided that this should become the group's primary focus," said chairman Michael Bell.
He added that John Meldrum, who had led the UK defence and security division for six years, would be appointed to the board subject to regulatory approval.
Bell confirmed that the company had explored potential sales of the forgings, petrol station superstructures and corporate branding businesses earlier in the year, but did not receive offers at valuations attractive to shareholders.
"We are not in a rush to sell these successful businesses as they continue to have considerable potential and make a significant contribution to the group," he said.
MSI declared a final dividend of 18p per share, up from 16.5p, bringing the total dividend for the year to 23p, compared to 19.5p a year earlier.
At 1219 BST, shares in MS International were down 10.44% at 1,218p.
Reporting by Josh White for Sharecast.com.