Morgan Crucible has held out the prospect of returning more cash to shareholders after reporting its highest profit in six years.

The company, which makes carbon and ceramic components for products ranging from military body armour to medical instruments, reported a rise of 48 per cent in pre-tax profits to £71.7m ($139.6m) on Tuesday on a constant currency basis for the year to January 4. It also lifted its total dividend 50 per cent to 6.75p per share.