Fleetwood chairman Michael Hardy has told shareholders the company will look at acquisition opportunities that are consistent with its core business.

Addressing investors at the company's annual general meeting, Mr Hardy said improved demand in the recreational vehicles and caravan market continued to bolster orders from caravan dealerships.

He said tender activity in the resource sector was busy but competition was intense and the company would pursue orders but also continue to protect its margins as much as possible.

Demand for park homes and transportable accommodation was improving.

"While it would appear that the economic environment in which we operate is improving we have no doubt that there are many challenges remaining," he said.

"Our business model has stood the test during an extremely difficult period and there is every reason for us to be cautiously optimistic that it will continue to do so."

In 2008/09, Fleetwood reported an operating profit after tax of $35.6 million, a 4 per cent increase on the previous year on revenue of $355 million, up 3 per cent.

Revenue in the recreational vehicles division declined 20 per cent, while earnings before interest and tax was down by 57 per cent to $8.3 million.

In the manufactured accommodation division, earnings before interest and tax increased by 38 per cent to $45.4 million.