Trifast, the Uckfield-based manufacturer of nuts, bolts and screws, has reported improved performance for the last six months.
The firm, which last year cut jobs and closed factories, reported a pre-tax profit of £2 million, up from £1.6 million for the same period last year.
Turnover was £52 million, down £400,000 on a year ago.
Chief executive Jim Barker said the figures were in line with expectations.
He said: "We have never been better focused to deal with the uncertainties in the market place and one of our key objectives has been to establish a more even balance of business.
"We were very heavily reliant on the telecoms and electronics industries and when they were hit by the economic slowdown, we suffered.
"Now we have reduced the percentage of our business in that sector from 50 to 30 per cent and have increased our business with the automotive and aerospace sectors."
The firm's overseas divisions had been able to pick up contracts lost when manufacturers, including Black and Decker, had moved their operations abroad.
Trifast's restructuring programme was almost complete and operational efficiencies had started to pay off.
Although the company's main exposure remained with the telecoms and electronics sectors, some stability had now returned to the marketplace and Mr Barker was cautiously optimistic about its future.
He said: "There are so many things happening in the world that could affect the economies of different regions but we have a strong business that does not rely too heavily on any single market or sector."
Over the last six months, Trifast has reviewed its low-margin business and where it was unable to negotiate better terms it has given notice it would not be extending contracts.
Mr Barker said: "We have concentrated our efforts on developing existing profitable customer relationships in our core business."
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