Fenner's revenues increase; growth expected to continue

ERJ staff report (SS)

Yorkshire, UK -- Fenner PLC recorded a £1.8 million increase in revenues to £380.8 million in 2007, compared to the same period in 2006, and expects to see this growth continue in 2008.

The group's operating profit also increased to £38.2 million from £33.7 million in 2006, and its basic earnings per share amounted to 15 pence per share, an increase of 2 pence year-on-year.

The conveyor belt manufacturer told shareholders at its annual general meeting on 17 Nov 2007 that trading in the first quarter of its 2008 financial year "has continued the positive trends seen in the previous year.”

Fenner said in a 9 Jan statement that revenues and profits in the Advanced Engineered Products division are ahead of the prior year with the seals business performing particularly strongly.

The company's Drives business in the US and Europe is also benefiting from strong order flows and encouraging growth, said the company, and it plans to develop the business in the hope that it will fuel growth for the future.

Fenner said that the investment in its dual site seals operation in the US as progressing well and it hopes to integrate two facilities in the second quarter of 2008.

The company's conveyor belting operations in the Asia Pacific region are experiencing high levels of demand for their products and services.

The company opened a new manufacturing unit in Shanghai in Nov 2007, which is running at full capacity, and its conveyor belting operations in the Asia Pacific region are performing well.

The company's UK and European belting operations have experienced increased levels of profitability derived from new markets in Eastern Europe and improved service delivery, according to the company.

In 2007 Fenner acquired B-loc in the US as an addition to its Fenner Drives business and Spliceline to compliment its Australian service business. The company said that these acquisitions are “integrating satisfactorily and will extend our product range in precision products and our value added sales capability in the Australian service business.”

“Our major organic capital investment programmes remain on schedule and have been extended in order to capitalise on market opportunities generated by our customer base,” Fenner concluded.

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Press release from Fenner