Fenner warns sterling gains and order delays will hurt revenues

CONVEYOR belt manufacturer Fenner yesterday said that a combination of increasing sterling strength and a delay in orders could dampen revenues for the six months to January.

The FTSE 250 firm said in a trading update that full-year figures will be in line with forecasts excluding currency movements, but that the pound’s movement against the US and Australian dollars would weaken the results.

Sterling exchange rates with the US and Australian dollars have increased by 8.5 per cent and 10.5 per cent respectively over the last six months.

Fenner added that revenue in its Advanced Engineered Products division “will be slightly more weighted towards the second half of this financial year than previously anticipated, mainly due to the deferral of certain customer sales”.

Liberum cut its rating on the stock to “hold” from “buy”, citing limited visibility in its conveyor business, order delays in the polymer business and a higher-than-anticipated 10 per cent impact from a stronger pound.