Manufacturer set for £1.2bn Michelin takeover doubles pre-tax profits in strong half year

Manufacturer Fenner, which is set to be acquired by Michelin in a £1.2bn deal, has almost doubled pre-tax profits and boosted revenue by £46m in a strong first half performance.

For the half year ended February 28, the Hessle-based firm reported revenue of £354.1m compared to £307.4m in the prior year period, meanwhile pre-tax profits soared to £28.5m from £13.8m.

Fenner, which trades worldwide and makes polymer products and conveyor belts for industrial customers including miners, said all business areas continue to perform well with “some notable market share gains” while it added that trading environments are showing more widespread signs of improvement, although there remains some caution amongst customers.

The board has declared an increased interim dividend of 2.1p per share, up from 1.4p.

Fenner, which announced the Michelin deal last month, said this morning it expects the transaction to complete on May 31.

Chief executive Mark Abrahams, who is retiring from the company following the Michelin takeover, said: “In line with the board’s expectations at the time of the annual general meeting in January, the results for the six months ended 28 February 2018 show significant progress on all principal measures against the same period last year.

“Since 11 January 2018, trading has continued the improving trend reflected in the AGM statement.”

 

Click here to sign up to receive our new South West business news...
Close