Fenner sees confident end to trading year

FENNER has said that it has seen signs of improvement in business over the summer and is predicting its year-end results will be “at least” in line with expectations.

The Hull–based conveyor belt manufacturer said that its last two months of trading in the year to August 31 had been positive.

It said in a pre-close statement today: “There have been increasing signs of activity pick-up in many of the industrial businesses. Although improvement is likely to be slow, it appears that the worst of the slow-down is now behind us.
 
“The coal businesses have been continuing strongly albeit with lower order books. In the US the cool summer conditions have contributed to suppression of coal demand, nevertheless, our targets for the performance and development of these businesses remain unchanged.”

Fenner is a world leader in the field of reinforced polymer engineering, producing conveyor belting for the mining, power generation and industrial markets and sealing products for the mining, hydraulics and energy industries; and technical textile structures for medical and industrial applications.

The group, which cut 290 jobs earlier this year as part of plans to save £11m in costs a year, said that the the operational gearing benefit from its reduced cost base will increasingly be felt as its volumes start to increase.

“This, combined with the returns from our investment programme, leaves the group very well positioned to benefit from improving market conditions,” it said.

The Hessle-based group said that a combination of “stringent” working capital control and improved operating performance reduced net borrowings to below £170m at the year end.

It will announce its year-end results on November 11.