Fenner gears up for acquisitions

The Hull-based firm, whose belts are predominantly used in the mining industry, said it would place 17.3 million shares, equivalent to 9.9 per cent of its share capital, with institutional investors.

If the shares were placed at Tuesday's closing share price of 225.8 pence, it would raise just over 39m ($60.32m).

It plans to use the funds to make acquisitions within the field of service activities in conveyor belting and the medical market.

"Fenner has continued to review potential acquisitions throughout the downturn and is actively pursuing three such acquisitions, which are currently at an advanced stage," it said.

Fenner also reported first-half results, showing pre-tax profit up 35 per cent to 16.3m and increased the interim dividend 9 per cent to 2.4 pence per share.

Analysts are currently expecting the group to report 2010 pretax profit of about 37m, up from 31m in 2009.

Its shares, which have gained 40 per cent so far this year on the back of positive trading updates, closed on Tuesday at 225.8 pence, valuing it at 395m.