Barlo Group is expected to sell three million radiators this year, a six-fold increase from the half million sold in 1990, the chief executive, Mr Tony Mullins told shareholders at yesterday's a.g.m. Group turnover is projected to increase by more than 40 per cent from £138.5 million to £200 million following an increase in manufacturing capacity in its other activity, plastics. The projected increase follows the acquisition of two plastics operations from BASF last November which, together, make annual sales of about £50 million.

Asked by one shareholder about the agreement with BASF to receive raw material from them and supply acrylic beads to them, Mr Mullins said that there were transitional arrangements in place with the chemical company which, after three years, would give Barlo complete independence with its acquisitions in Mainz, Germany, and Barcelona, Spain.

"It would be unrealistic to take over a very competitive and very organised BASF distribution network immediately," he added.

He said that there was a trend towards consolidation of radiator manufacturers in Europe but Barlo was in the top six companies. "We are in the vanguard of that trend... We would have every intention of remaining one of the leading radiator manufacturers and one of the most profitable radiator manufacturers," he said. In the financial year to the end of March, the group's radiator division, comprising the Barlo, Veha and Merriott operations, contributed over half group turnover, at £70.9 million. Group pre-tax profits were £8.5 million.

The plastics division was expected to contribute about 60 per cent of the turnover for the current year, Mr Mullins said.

He added after the meeting that the company was interested in developing new markets in central and eastern Europe, while there was currently a small export trade in radiators to Japan. "If you are developing markets, you have to take a 10-year view," he said.