Polymers firm Fenner has reported a strong trading period for the six months ended February 29th 2012, with operating profit for the half year 'significantly' ahead of the comparable period last year.
The firm experienced positive trading conditions, supported by steadily growing demand from the mineral extraction/energy sectors, and market share gains.
"Operational efficiencies that were seen in the second half of last year have driven improved margins in both the Engineered Conveyor Solutions and Advanced Engineered Products divisions," the firm said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Ongoing capital investments have increased capacity for strategically important medical textile, and oil and gas products. Expenditure has also been committed to create additional capacity and capability for conveyor belt used in mineral extraction."
Net borrowings, after acquisition payments, seasonal outflows and investments to support growth, are in line with the firm's expectations, while healthy order book levels support its expectation of continued positive trading.
Shares had jumped nearly 8% in early trading on Thursday.
NR
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
