13th Nov 2013 09:03
LONDON (Alliance News) - Fenner PLC said Wednesday revenue for the full-year to August 31 2013 was GBP820.6 million, down from GBP830.6 million last year as group financial performance recovered strongly in the second-half.
In a statement, Fenner said that the overall result for the year was, "In terms of revenue, operating profit and earnings, the second highest achieved by the Group and was in line with the Board's expectations at the mid-point of the year."
Revenue for the full-year was GBP820.6 million, down from GBP830.6 million last year; underlying operating profit was GBP101.5 million, down from GBP118.8 million in 2012; underlying profit before taxation was GBP86.9 million from GBP103.9 million last year; and underlying earnings per share was 30.1 pence, down from the 36.1pence reported in the comparable period.
Dividend per share increased by 7% to 11.25 pence, reflecting confidence in the Group's prospects and strong financial position, said the company.
Fenner said its Advanced Engineered Product line saw record annual revenues and profit performance, with revenues of GBP270.8 million for the year, up from GBP237.2 million, and underlying operating profit of GBP46.8 million, up from GBP43.6 million. The firm said that a particular aspect of note in these figures is that customers in the oil and gas and medical industries accounted for 40% of AEP's revenue, up from the 33% last year, "We believe that these industries offer superior growth and margin opportunities and we will continue to invest in them."
Within the AEP division, Fenner said that the year saw contrasting performances between the first and second-half, with results in the first-half falling off due to general economic concerns in the US, and improving conditions during the second-half as the outlook and sentiment improved.
The Engineered Conveyor Solutions division benefited from cost reductions and, later in the year, signs of improvement in trading conditions, said the company, with ECS recording revenue of GBP549.8 million, down from GBP593.4 million last year and underlying operating profit of GBP63.0 million, down from GBP84.4 million in 2012.
Fenner said, "ECS's results for the year were below those of the record achieved in 2012 as the mining industries in the USA and then subsequently in Australia saw markedly weaker trading environments than in recent years, with lower commodity prices impacting sentiment amongst ECS's customers." The report notes that the division's largest region by revenue was the Americas, accounting for 42%, closely followed by Asia Pacific with 41%.
During the year, Fenner made GBP90 million in investments, in order to support future growth. Also of note, net cash from operations was GBP126.5 million, representing 125% of underlying operating profit.
The company said it is well positioned for the 2014 financial year and that it expects to benefit from the investments made in the AEP and ECS divisions over recent years, as well as a return to growth for the current financial year.
Nicholas Hobson, Chief Executive Officer, said, "Our performance throughout the year reflects the strength and resilience of the businesses we have built, with AEP achieving record annual revenues and profit. The first half of the financial year saw a robust response by both ECS and AEP to difficult trading conditions in certain key markets. Our financial performance recovered strongly in the second half of the year as conditions showed some signs of improvement."
Shares in the technology firm were up 6.6% at 434.00 pence per share in early trading Wednesday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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