Fenner remains on track

Reinforced polymer technology firm Fenner said current trading remains in line with company expectations, despite continuing macro-economic uncertainty, with results for the year ended 31st August 2012 expected to show substantial growth in revenues and profit.

Fenner said the fundamentals of its core markets remain strong and the Southern Hemisphere and European operations of the Engineered Conveyor Solutions division performed strongly.

As previously stated, ECS experienced some slowing of order rates from the US coal market in the wake of an exceptionally mild winter and uneconomic shale gas pricing.

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"As anticipated this has been reflected in our activity levels, although US coal stockpiles have now been decreasing from historic highs for several months. Our order book for the division remains satisfactory," the group explained.

Meanwhile its Advanced Engineered Products division performed well, generating seasonally higher margins in the second half.

Fenner added: "We continue to deploy our strategy to exploit growth opportunities through investment in additional capacity in selected markets across both of our operating divisions."

"Since the year end we have completed three small bolt-on acquisitions; Mandals, Norwegian Seals and American Industrial Plastics, which support our growth strategy in AEP's oil & gas and medical activities."

Strong cash flows through its final quarter have resulted in year end net borrowings of less than £100m.

CJ