Fenner positive after strong growth

The industrial oconveyor built specialist said revenue and underlying operating profit - at constant exchange rates - in the third quarter of the financial year were well ahead of the comparable period last year.

East Yorkshire-based Fenner said trading in the Advanced Engineered Products division was better than expected. It also said it was on the lookout for acquisitions in its service business.

It saw growth from a recovery in industrial markets, particularly in the US, and backed by by a re-stocking of supply chains.

In an interim management statement it said: "Our seals business has benefitted from good levels of demand from the oil and gas sector and improved order intake in the general hydraulic sector.

"Despite the continuing wider economic uncertainty, our other businesses in the division, focused on niche areas of expertise, have made solid progress and we are seeing new opportunities in both established and new territories."

Fenner said its business development programme in its technical weaving business, which includes Secant Medical, has more opportunities for generating new revenue streams.

Its acquisition of MRI Manufacturing and Research earlier this month strengthened its position in supplying the medical device market.

It also said the conveyor belting division was largely unaffected by the economic downturn and has continued to perform well.

"The benefits from recent capital investments are increasingly generating operational efficiencies. We continue to pursue opportunities for acquisitive growth in our service businesses."