LONDON (Alliance News) - Polymer products manufacturer Fenner PLC Wednesday said it has traded in line with expectations since March 1 and has made good progress in re-aligning and restructuring its activities to suit the local market conditions in each of the various regions where it operates.
In April, the company reported a fall in profit and revenue for the full year as it was hurt by sterling's gains against all major currencies in which its revenues are generated. With operations around the world, Fenner said it is exposed to currency translation risks in respect of its income.
Fenner said in Australia, its Engineered Conveyor Solutions (ECS) arm continues to benefit from high levels of mineral extraction, although lower commodity prices continue to impact miners' profitably.
"ECS has an active programme of contract tendering and, with its modern plant and skilled workforce, expects to maintain its share of the belting market in Australia," the company said.
However, Fenner said in the US, sentiment in the coal industry is unchanged and remains weak. The company said there are no signs that any improvement in the US is imminent for ECS and measures are being taken to manage costs and capacity across the business.
On the other hand, Fenner said the performance of Advanced Engineered Products (AEP) continues to be encouraging, with trading across the division in line with expectations. The company said AEP has increased its revenue investment in innovation and leadership teams to support organic growth this year. Fenner expects this higher level of investment to be "at least maintained in future years".
Fenner shares were quoted down 0.1% at 342.40 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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