Belting growth for Fenner

The group, based in Hessle near Hull, said a recovery in industrial markets had helped it to grow its conveyor belting and advanced engineered products divisions.

Earlier this month it announced that its subsidiary Enerka Apex Belting Pty had bought the gross assets of privately owned Statewide, based in Burnie, Tasmania, for Aus $3,945,000 (£2.63m).

Today Fenner said: “In the conveyor belting division, demand patterns from the coal sector have been robust with end users placing orders to secure forward supplies.

“A continued recovery was evident in industrial markets which added volume to plant throughput. We have experienced a period of rising input costs in an environment of escalating raw material prices which has necessitated selling price adjustments. Margins have been maintained ahead of those of the prior year.”

The advanced engineered products businesses made “excellent” progress and demand for its niche critical application products has been “strong”.

The seals business saw high demand from the oil and gas and general hydraulic sectors and the integration of Multiseals in Singapore, bought in April, is going well, it said.

The precision polymers business saw solid Q3 tradings, well ahead of the last year, driven by economic recovery and growth in new markets. The medical business is “flourishing” after investment and the development of revenue streams, it added.

Analysts at Liberum Capital, which has an office in Leeds, rated Fenner “buy”.

“Trading in Q3 has been strong and comfortably meeting expectations. Visibility is good and the outlook is confident... A robust balance sheet means more accretive acquisitions are likely.”