Global growth keeps Fenner rolling

INDUSTRIAL group Fenner today hailed a strong second half performance as it announced a fall in revenue and profits.

The Hessle-based conveyor belt and reinforced polymer manufacturer said its businesses had “strength and resilience” as they weathered difficult trading conditions in key markets.

Despite the drop in revenue to £820.6m from £830.6m and pre-tax profits falling to £67.9m from £88.6m, Fenner said that the figures achieved for revenue, operating profit and earnings were the second highest ever achieved by the group after 2012’s record numbers.

First half trading this year dented the figures but chief executive Nicholas Hobson said that financial performance recovered strongly in the second half with global economic forecasts for 2014 showing stronger growth.

The company is increasing its dividend to 11.25p a share from 10.5p.
 
Mr Hobson commented: “Our performance throughout the year reflects the strength and resilience of the businesses we have built, with AEP [advanced engineering products] achieving record annual revenues and profit. The first half of the financial year saw a robust response by both ECS [engineered conveyor solutions] and AEP to difficult trading conditions in certain key markets. Our financial performance recovered strongly in the second half of the year as conditions showed some signs of improvement.
 
“Fenner is well positioned as we enter our 2014 financial year, with the benefit of the investments made in both divisions over recent years, a strong financial position and a mixed but generally improving global economic environment. Overall, we continue to expect that the current financial year will see a return to growth.”