Fenner’s profit rise powered by energy and mining sectors

City A.M. Reporter
BRITISH industrial conveyor belt maker Fenner yesterday reported a higher first-half profit on strong demand from its energy and mining customers, and said it was confident of continued progress through the year.

“Trading was very strong in the first half as growth drivers in our core businesses remained positive,” chairman Mark Abrahams said in a statement yesterday.

“Our order book remains healthy, we are trading in accordance with expectations and we remain confident in our ability to continue to make progress in the second half,” he added.

For the six months to 29 February underlying pre-tax profit jumped 53 per cent to £48.1m.

Sales at Fenner, whose belts are predominantly used in the mining industry, were 24 per cent higher at £412m. The company had said last month it expected a “significant” rise in first-half profits. The strong results prompted Fenner to increase its interim dividend by 32 per cent to 3.5p per share. Fenner, an expert in the use of polymers, grew rapidly in the 1990s with two rights issues. Fenner Group employs over 3,700 people worldwide, with annual turnover in excess of £400m and is administered from headquarters based on the outskirts of Hull.