Sector recovery provides revenue boost for Fenner

The engineering group, based in Hessle near Hull, said trading across its conveyor belting and advanced engineered products (AEP) divisions has been strong, with both continuing to grow.

The group said between March and May, “revenue has increased significantly over the comparable period”.

“With trading results comfortably meeting our expectations, we remain confident in the outlook for the remainder of the current year,” said Fenner.

Its conveyor belting division has seen “robust” demand from the coal sector, with end users ordering ahead to secure supplies.

Fenner added it saw a clear continued recovery in industrial markets, helping its factory volumes.

The group said it has been tackling rising costs by increasing selling prices. “Margins have been maintained ahead of those of the prior year,” added Fenner.

Its AEP businesses have made “excellent” progress, with demand for niche products “extremely strong”.

Fenner’s seals business continued to see high demand from the oil and gas and general hydraulic sectors.

Earlier this month, Fenner bought Statewide Belting Service, a privately-owned company supplying conveyor belts, accessories and installation to the mining and manufacturing industries in Tasmania.

In April Fenner also bought seals manufacturer Multiseals to expand its products and services to the oil and gas industry in the Asian market.

Fenner said the integration of Multiseals is progressing well, with “satisfactory” trading so far.

The group’s precision polymers business had a “solid” third quarter, and the group added its medical business continued to grow.

Fenner completed a $200m (£124m) US private placement in May, with institutional investors snapping up the senior guaranteed loan notes, with 10-12 year maturities.

It said while debt remains in line with its expectations, it expects to increase organic investment across its business.