15th Jan 2014 08:41
LONDON (Alliance News) - Polymer products manufacturer Fenner PLC Wednesday kept its full-year guidance unchanged in constant current terms, but warned that it has been hurt by sterling strengthening against all major currencies in which its revenues are generated.
In an interim management statement, the firm said results for its financial year ended August 31, 2013, using rates as at December 31, 2013, would have reduced underlying operating profit by approximately GBP9 million.
Despite this, Fenner said it has made progress since September, as its two main arms, Engineered Conveyor Solutions (ECS) and Advanced Engineered Products (AEP) made strides, reflecting improved macro-economic conditions.
The firm said ECS trading results for the period September 1, 2013, to January 14th, 2014, were in line with management expectations, albeit below the levels for the comparative year-earlier period, reflecting a very strong strong trading period in Australia that year.
Fenner said it has continued to see high levels of iron ore extraction in Australia, leading to some easing of constraints on mines' operational expenditure, while further progress by ECS in hard rock mining has boosted the division's trading and order book
AEP trading and outlook is continuing to target opportunities in the oil and gas and medical industries and, as previously indicated, has increase revenue investment in both human capital and innovation to help achieve organic growth.
Overall Fenner said AEP's trading and outlook is encouraging and has reflected generally improving macro-economic conditions.
It now expects AEP's revenue and operating profit to be slightly more weighted towards the second half of this financial year than previously anticipated, mainly due to the deferral of certain customer sales from the first half of the year to the second.
The group's financial position remains strong, with net borrowing being in line with expectations, it added.
Fenner shares were down 6.0% at 427.84 pence early Wednesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Fenner PLC