Fenner lifts dividend by nearly a third

Industrial conveyor belt maker Fenner reported a stellar increase in profit and revenue for the year and lifted its dividend payment by 31 per cent.

Industrial conveyor belt maker Fenner reported a stellar increase in profit and revenue for the year and lifted its dividend payment by 31 per cent.

Profit before taxation rose 27% in the 12 months ended August 31th to £88.6m while underlying pre-tax jumped 30% to £103.9m. Revenue for the year was up 16% to £830.6m. Underlying earnings per share rose 28% to 36.1p.

Fenner said the positive trading conditions for most of the year driven by record levels of coal and iron ore extraction. Some slowing of order intake from the US coal sector was seen towards the end of the year but coal stockpiles have been reducing for several months, it said.

Chairman of the reinforced polymer technology firm Mark Abrahams commented: "We remain mindful of the current global economic uncertainty. Given both anticipated end market trends and the very strong first half last year, we expect our performance to be more heavily weighted to the second half of the current year."

He added: "As a result of our investment programme over recent years, Fenner is a much stronger and more resilient business serving a more diverse customer base. The fundamentals of our core markets underpin healthy, long-term growth, and we continue to be encouraged by the number of identified opportunities for sustained value creation."

Underlining its confidence in future earnings, Fenner is recommending a dividend of 10.5p per share, up 31% from last time.

CJ

Recommended

Three stocks to provide income and growth in good times and bad
Share tips

Three stocks to provide income and growth in good times and bad

Professional investor Matthew Page of the Guinness Global Innovators fund picks three resilient stocks that should pay predictable dividends that grow…
5 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022
Invest in defence stocks as war goes hi-tech
Share tips

Invest in defence stocks as war goes hi-tech

The operational efficiency of defence equipment and cybersecurity is developing rapidly owing to the war in Ukraine, says Jonathan Compton. Here’s wha…
4 Aug 2022
Enjoy the bear market rally while it lasts
Stockmarkets

Enjoy the bear market rally while it lasts

Investors seem to think that a weaker US economy will cool inflation and see the Fed relent on interest rate rises. But that optimism may be misplaced…
3 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
What is stagflation and what can be done about it?
UK Economy

What is stagflation and what can be done about it?

The threat of 1970s-style stagflation has returned, here’s what you need to know.
4 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022