Manufacturer positions itself for long-term growth
CONVEYOR belt and reinforced polymer manufacturer Fenner today said it is positioned for long-term growth, despite seeing revenues fall.
In its results for the half year ended February 28, the Hessle-based group reported revenue at £359.8m compared to £391.3m in the previous period and underlying pre-tax profit was £29.6m, down from £35.8m.
The group, which operates two divisions – Engineered Conveyor Solutions (ECS) and Advanced Engineered Products (AEP) – said these results are as anticipated and partly reflect currency movements.
Nicholas Hobson, chief executive officer, said: “During the period, the group continued to make important progress towards its strategic objectives, positioning the group for further long-term growth in each of its two divisions.”
Hobson said ECS is performing well in Australia, where it has entered the second half of the year with an improving order book. In the USA, sentiment within the coal mining industry has remained cautious, reflecting subdued coal prices and mining companies’ lower levels of profitability, which, together with corporate activity amongst mine owners, has led to increased deferral of maintenance work and de-stocking of belts by ECS’s customers, the group added. However, further progress is anticipated in ECS’s newer markets.
The group expects AEP to continue to make progress towards stated strategic objectives which underpin future growth and continues to be an area of primary focus for acquisitions. The seasonal weighting of revenues and operating profit towards the second half is expected to be slightly more accentuated than in recent years.
