Fenner delivers rise in half year profits as it makes steady market share gains

In the half year ended February 28, the company’s revenue was £307.4m, which is an increase of 11 per cent on the same period the year before. Underlying profit before taxation was £16.5m, an increase of 104 per cent.

The Hessle-based firm said its expected outcome for the year was above previous expectations at the operating profit level, “with a further benefit to earnings from a lower tax rate in the current financial year”.

Mark Abrahams, the chief executive, said: “It is pleasing that the restructuring of the group has created a platform from which we are now growing and making steady market share gains.

“We look forward to maintaining this momentum.”

Commenting on outlook, Fenner said: “The market drivers in many of the group’s businesses are starting to look more favourable, although in many cases this is translating only slowly into growing markets for our products.

“In the case of oil and gas however, there is a clearly improving trend.

“In addition, across our businesses, progress made in new product development and market share gains remains a driver of revenue which, combined with a well-controlled cost base, is improving profitability.”

Analysts from N+1 Singer described it as “another strong update from Fenner”.

The note added: “It should be noted that the outperformance is still being driven largely by internal benefits arriving earlier than expected, rather than from end market improvements at this stage.”

Fenner operates through two divisions: Advanced Engineered Products (AEP) and Engineered Conveyor Solutions (ECS).

The AEP division is a group of nine businesses that use advanced polymeric materials and technical expertise to provide high value-added solutions to customers’ engineering problems across a variety of markets.

The ECS division supplies heavyweight conveyor belting and related services to the mining, industrial and bulk materials markets.