FENNER is bracing itself for the effects of a “further deterioration” in the US coal industry after it warned it would not meet expectations in the current financial year.
The cautionary note came as the listed business announced pre-tax losses of £5.3m after a 9% drop in revenues to £666.7m in the year to August.
Its share price, which had been 235p in June, fell 5% on opening to 146p. The Hessle-based manufacturer had a market value of £455m at its summer peak, but that is now 40% lower at £280m.
Nicholas Hobson, chief executive officer, said: “The group has faced difficult trading conditions in some of its key markets. We have responded by rigorous control of costs and the close management of cash and working capital, whilst still maintaining our ability to resume growth when market conditions allow.
“Trading in the majority of the group remains in line with management expectations. However, in the light of the recent further deterioration in the US coal industry, the board envisages that the group is likely to achieve an outcome for the current financial year which is moderately below its previous expectations.”
