Shares in industrial conveyor belt maker Fenner rose 10 per cent today, the second-top gainer on the mid-cap FTSE 250 index, after it said it expects first-half profit to be significantly ahead of last year.
The Hessle-based company said it is confident of further growth.
The company, whose belts are mainly used in the mining industry, said trading in the second quarter of its financial year continued to be strong on the back of growing demand from the mineral extraction and energy sectors.
“As the group enters the second half of its financial year, healthy order book levels support our expectation of continued positive trading,” the company added.
Fenner reports first-half results in April.
Analysts at Investec Securities said: “Having spoken to management, and based on our analysis, we can see incremental revenue and margin accretion for this year and next.”
As such, we think the stock has further to run over the next 12 months,” they added, raising their recommendation on the company’s stock to ‘buy’ from ‘hold’.