Fenner 'confident' of return to growth in 2013/14 financial year

Fenner, the maker of reinforced polymer technology, has said it is 'confident' of a return to growth in its 2013/14 financial year, having delivered half year results below the comparable performance last year.

Fenner, the maker of reinforced polymer technology, has said it is 'confident' of a return to growth in its 2013/14 financial year, having delivered half year results below the comparable performance last year.

For the six months ended February 28th 2013, revenue totalled £391.3m, down five per cent from the £412m delivered the same period the previous year after being hit by 'challenges' in both the Engineered Conveyor Solutions ("CS) and Advanced Engineered Products (AEP) divisions.

Operating profit plunged 29% from £50.2m to £35.5m year-on-year, while profit before tax sank 35% from £41.7m to £26.9m.

Basic earnings per share fell from 14.8p to 8.8p.

Despite the figures, the dividend for the period was increased by seven per cent from 3.5p to 3.75p, which it said was a reflection of its confidence in the group's earning prospects.

The group said it has seen improved order levels in North America, which will be converted into growing revenues in the second half and beyond, which in Australia the business experienced a challenging environmentin the second quarter as a result of lower iron ore and coal prices.

Fenner's acquired businesses have been performing well, it said, adding that their contribution in the initial months of ownership has been ahead of its expectations.

In a statement Chairman Mark Abrahams commented: "Fenner has delivered robust half year results in a challenging operating environment. While, as anticipated, results are below the comparable record performance last year, the first half saw further progress towards our strategic objectives and encouraging evidence of improvement in most of our markets.

"We remain mindful of the continuing global economic uncertainty and ongoing pressures in our Australian business. We expect that our accelerating trading momentum elsewhere in the business will result in a heavier than normal performance weighting this year towards the second half and we are confident of a return to growth in our 2013/2014 financial year."

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021