16th Nov 2016 08:05
LONDON (Alliance News) - Fenner PLC said Wednesday that despite a sharply widened loss and drop in revenue for its most recent financial year, it expects the results for its current financial year to be ahead of previous expectations.
The reinforced polymer product manufacturer reported a pretax loss of GBP30.3 million for its financial year ended August 31, widened dramatically from GBP5.3 million the prior financial year. However, Fenner reported an underlying operating profit of GBP37.1 million, down from GBP54.4 million year-on-year.
Fenner's revenue for its financial year dropped to GBP572.5 million from GBP666.7 million year-on-year.
The company declared a final dividend per share of 2.0 pence, making for a total of 3.0p for the financial year, down from 12.0p.
Fenner said the fall in revenue and underlying operating profit was driven primarily by difficulties in the US coal mining industry and slowdown in the oil and gas sector, with its Advanced Engineered Products business providing "a bright spot" with improved results.
Fenner noted that its closing net debt was GBP150.0 million, increased from GBP138.0 million at the end of the prior financial year, but said the result showed increased cost control.
"The group's results were ahead of our expectations at the time of the annual general meeting in January 2016, assisted by currency. Management actions have started to outweigh market pressures," said Mark Abrahams, chief executive officer.
"As a consequence, we now anticipate that the outcome for the current year will be modestly ahead of our previous expectations. In addition, the group is experiencing a tailwind from the translation of overseas earnings into sterling, with the year-on-year impact on underlying operating profit from currency movements estimated to be GBP4m based on exchange rates prevailing during the early part of the new financial year," added Abrahams.
Shares in Fenner were up 3.4% at 243.75p early Wednesday.
By Adam Clark; [email protected]
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