Strong market update drives Fenner shares up five per cent

 
Suzie Neuwirth
BRITISH conveyor belt manufacturer Fenner yesterday said that it expects its full-year results to remain in line with expectations and anticipates a return to growth in the next financial year.

The FTSE 250-listed firm posted net debt of around £125m, beating management and analysts’ expectations. This was attributed to the timing of payments, reduction in working capital and exchange rate movements.

“The engineered conveyor solutions (ECS) division [that provides products for the mining and energy markets] in North America continued to show improvement compared to the lows in the previous year while Australia, as expected, was impacted by the well flagged expenditure pressures in the mining industry,” said Scott Cagehin, analyst at Numis.

“This is a reassuring update highlighting that trading has not deteriorated further and it should achieve full year forecasts compared to recent market fears of it not achieving this year’s expectations.

“Concerns remain for its Australian mining exposure but conditions have stabilised there and the service business remains robust.”

Fenner will release its full-year results on 13 November.

The Hull-headquartered firm posted a 16 per cent rise in revenue to £830.6m last year.

Shares closed five per cent higher at 389.50p.