Listed manufacturer back in the black after strengthening performance
Hessle manufacturer Fenner has climbed from a pre-tax loss of £30m in 2016 to a pre-tax profit of £38.1m this year as the group moves from recovery towards sustainable growth.
Fenner’s underlying operating profits rose by 59% to £59.1m in the year to the end of August, while revenues were up 14% at £655.4m, with the group posting an operating profit of £53.4m compared with a loss of £14.7m last year. It also reduced its net debt from £150m to £101m.
On the back of its strong performance, Fenner, which trades worldwide and makes polymer products and conveyor belts for industrial customers including miners, has increased its final dividend of 2.8p, up 40%, making total dividend for the year of 4.2p.
Mark Abrahams, chief executive, said: “The group’s results for 2017 show significant improvements over the previous year on all measures. These improvements illustrate the strength of the group’s responses to the difficult trading conditions faced by the group in many of its principal markets over recent years and particularly reflect our continuing commitments to customer service, product development and operating efficiency.
“As we enter the new year, the outlook is strengthening. The group’s momentum is being maintained with each of our businesses seeing opportunities and encouraging developments.
“We believe the coming year will see further progress across the group, notwithstanding the significant macro-economic uncertainties around the world. Overall, given the structural growth opportunities that the group has created, the board anticipates that the outcome will be above its previous expectations.”
In 2017, the firm spent £2.2m on restructuring; the previous year saw Fenner spend £10.4m on restructuring. This year, Fenner spent £15m on acquisitions and received £5.8m through disposals. EBITDA rose from £61m in 2016 to £85m this year.
