Fenner drops on FTSE 250 as it adds 17m ordinary shares

Fenner (LON:FENR), the Yorkshire-based industrial conveyer belt manufacturer, has announced a 17,302,233 new ordinary share placing to fund acquisitions in an announcement released alongside its 2010 half year results released today.

Rob Hull
shareprices.com - Wednesday, April 28, 2010

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Fenner makes conveyer-belt moving walkways like this

The group, which makes belts for the mining industry and moving walkways, released its half year results this morning headlined by a 24 per cent increase in operating profit and a 35 per cent increase in profit before tax.

And there was also an increase of earnings in shares of 38 per cent to 6.4p and a dividend increase of nine per cent to 2.4p per share.

However, the placing of more ordinary shares has sent the share price down by as much as 7.88 per cent to as little as 208p today and puts the group second in the FTSE 250 fallers for the day.

Fenner has said now that it is emerging from the recession, following taking early and rapid cost saving controls to protect the group’s profitability during the economic downturn, its capital expenditure and market share gain is increasing.

And in order to continue to grow it wants to pursue three potential acquisitions, explained to be in the conveyer belting and medical market, that Fenner say are at an advanced stage.

Mark Abrahams, Chief Executive, said: “The fundraising announced today will help us continue the momentum of our acquisitions and organic development programme and benefit from the many growth opportunities available to us across our markets”.

The share placing is being conducted by RBS Hoare Govett by way of an accelerated book building.

 

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