11th Nov 2014 08:00
LONDON (Alliance News) - Fenner PLC posted a big drop in pretax profit for the year on Tuesday on the back of a fall in revenue, as the company was hit by currency movements and weaker conditions in key markets
The reinforced polymer technology company said pretax profit for the year to August 31 was GBP29.2 million, sharply down from the GBP66.4 million posted a year earlier.
Revenue in the period was down to GBP729.4 million from GBP820.6 million, hit by the strength of sterling over the year. At constant currencies, revenue fell 4%, Fenner said.
The group said the results were in line with its revised expectations, but acknowledged the performance fell below its expectations at the start of the year.
Despite the fall, Fenner hiked its final dividend payment for the year to 12 pence, up 7% from the 11.25 pence paid a year earlier.
Fenner Chief Executive Nicholas Hobson said the company's Advanced Engineering Products arm performed well in the year and said its Engineered Conveyor Solutions division performed resiliently against a deterioration in trading conditions in parts of the mining industry over the year.
"We have entered the financial year with the group well placed to respond to the opportunities and challenges which we are facing. We are very aware of the potential impact on our end markets and the world economy generally from falls in the prices of energy and commodities and from forecasts of lower economic growth," Hobson added.
"Overall, the strength and resilience of our businesses mean that, in a climate of increased economic and political uncertainties, we anticipate that growth in revenue and profitability in AEP is likely to be offset by weakness in the mining market."
By Sam Unsted; [email protected]; @SamUAtAlliance
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