Fenner reports growth ahead of Michelin takeover

London – Polymer engineering company Fenner PLC has reported a strong half-year performance ahead of its expected takeover by Groupe Michelin later this month.

Revenue for the first half, ended 28 Feb, stood at £354.1 million (€402 million), up 15.1% compared to £307 million in the 2017.

Operating profit rose 49.1% to £33.4 million for the period, marking improvement in both Fenner businesses: Advanced Engineered Products (AEP) and Engineered Conveyor Solutions (ECS).

“All business areas continue to perform well with some notable market-share gains,” said the group in its half-year report published 25 April.

Trading environments, said the UK-based supplier, are showing more widespread signs of improvements, although there remains some caution among customers.

Commenting on the proposed acquisition by Michelin, which was announced in March, Fenner said benefits would include the French group’s global scale and purchasing expertise as well as access to its polymer capabilities.

Additionally, it said, the acquisition “represents an opportunity for Fenner shareholders to crystallise in cash the value of their holdings on attractive terms.”

The terms of the acquisition value each Fenner share at 610 pence (€6.92) and Fenner’s total share capital at £1.2 billion.

A Fenner shareholders meeting on 16 May will discuss the acquisition, which is expected to be completed 31 May.