12 Jul 2012 07:00
12 July 2012
Fenner PLC ("Fenner" or "the Group")
Interim Management Statement
Fenner today issues the following Interim Management Statement, which covers the period from 1 March 2012 to date.
Current Trading
The Group has continued to make solid progress during the period, achieving revenue and earnings in line with expectations.
The Engineered Conveyor Solutions ("ECS") division continued to operate at high levels of factory utilisation and operating margins were in line with previous run rates. Notwithstanding strong demand in other regions, ECS has experienced some slowing of order rates from the US coal market as our customers align output with consumption in the wake of an exceptionally mild winter and uneconomic shale gas pricing. There are already early signs that coal stockpiles are returning to more normal levels with a recovery in US natural gas prices, and of an increase in US coal export activity. Our capital investment programmes are proceeding according to plan and will bring welcome additional capacity to operations in The Netherlands and Australia in spring 2013.
Our Advanced Engineered Products division has continued to perform in line with expectations, experiencing seasonally higher operating margins as we progress through our second half period.
On 18 May 2012 the Group completed the refinancing of its operating bank facilities with a £100m five year revolving credit line with its primary banks. The strong balance sheet and satisfactory gearing level will enable us to continue to pursue our accelerating organic and acquisitive growth plans.
Outlook
Overall, recent trading supports our confidence in meeting our expectations for the full year.
Capital Markets Day
Fenner will be hosting a Capital Markets Day at the ECS facility in Drachten, The Netherlands on 18 July. No trading information or guidance will be provided beyond the contents of this statement.
Certain statements contained in this document constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fenner, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements.
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For further information please contact:
Fenner PLC | 01482 626501 |
Nick Hobson, Chief Executive | |
Richard Perry, Finance Director | |
Weber Shandwick Financial | 020 7067 0700 |
Nick Oborne / Stephanie Badjonat / Robert Cook |