10 Sep 2012 07:00
10 September 2012
Fenner PLC ("Fenner")
Pre-Close Statement
Fenner anticipates that its financial results for the year ended 31 August 2012 will be in line with expectations showing substantial growth in revenues and profit against the previous year.
The Southern Hemisphere and European operations of the Engineered Conveyor Solutions division ("ECS") performed strongly. As highlighted in our Interim Management Statement in July, ECS experienced some slowing of order rates from the US coal market as customers aligned output with consumption in the wake of an exceptionally mild winter and uneconomic shale gas pricing. 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.
Our Advanced Engineered Products division ("AEP") performed well, generating seasonally higher margins in the second half.
The fundamentals of our core markets remain strong and 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 our final quarter have resulted in year end net borrowings of less than £100m, providing a secure base for future investment.
Current trading remains as expected against a backdrop of continuing macro-economic uncertainty.
The group expects to announce its results for the full year on 7 November 2012.
Disclaimer
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 |