Fenner reports strong trading in first half

ERJ staff report (DS)

London-- Fenner PLC reported very strong trading in the six months to February 2012. The company said underlying operating profit reached a record level, increasing by 52 percent to £55.7m (euro 67.9 million)

Fenner said its Advanced Sealing Technologies operations performed extremely well. “Strong demand from the oil and gas sector with high levels of aftermarket activity improved revenues, despite the mild winter and lower gas prices. Hydraulic seals demand benefitted from steady growth in the mining and agriculture equipment sectors; the latter experiencing some improvement in available credit. In September 2011, we acquired Transeals, an aftermarket operation serving the oil and gas and mining sectors on the Australian west coast; this operation dovetails with our existing operations in the east and its integration, which includes a reorganisation of logistics nationwide to better serve our customers, has progressed to plan.”

The company said that its Precision Polymers unit also experienced growth in its document handling and offshore grouting system seals products as markets reflect steady growth and project work in the renewable energy sector. Elsewhere, activity in general industrial markets was modestly ahead of last year

Revenue for the period increased by 24 percent to £412.0m (euro 502 million) (compared with £332.5m in 2011). Most of the increase was generated organically as revenue on a constant currency basis, excluding the year on year effect of acquisitions, grew by 18 percent. Underlying operating profit increased by 52 percent to £55.7m (2011 £36.7m). At constant currencies, and excluding the year on year effect of acquisitions, the increase was 40 percent. Underlying operating profit advanced in the ECS Division by 62 percent to £39.8m (2011 £24.5m) and in the AEP Division by 23 percent to £20.5m (2011 £16.6m). The favourable effect on the Group's underlying operating profit of exchange rate translation amounted to £0.6m.

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Press release from Fenner