Fenner anticipates growth in revenue and profit

The Hessle, East Yorkshire-based firm, said in an update to the stock exchange today that the results for the year ending August 31, 2012, will be in line with expectations.

The company said the Southern Hemisphere and European operations of the Engineered Conveyor Solutions division (ECS) performed strongly.

ECS experienced some slowing of order rates from the US coal market in the wake of “an exceptionally mild winter and uneconomic shale gas pricing”. The firm’s order book for the division remains satisfactory, it said.

Fenner said its Advanced Engineered Products division (AEP) performed well, generating “seasonally higher margins” in the second half.

The firm said: “The fundamentals of our core markets remain strong and we continue to deploy our strategy to exploit growth opportunities through investment in additional capacity in selected markets across both of our operating divisions.”

Since the year end, Fenner has completed three small bolt-on acquisitions; Mandals, Norwegian Seals and American Industrial Plastics, which support its growth strategy in AEP’s oil and gas and medical activities.

The firm added that year end net borrowings are less than £100m. It said: “Current trading remains as expected against a backdrop of continuing macro-economic uncertainty.”

The group expects to announce its results for the full year on November 7, 2012.