11th Mar 2014 13:41
(An item published at 0857 GMT misstated the year-earlier period. The correct version follows.)
LONDON (Alliance News) - Polymer products manufacturer Fenner PLC saw its shares tumble early Tuesday after it confirmed its results for the first half of its current financial year will be below those it posted in the first half of fiscal 2013.
Fenner had warned about the lower results in its interim management statement in January. However, the company said Tuesday it expects its results for the 2014 financial year as a whole to grow modestly compared with the 2013 financial year on a constant currency basis.
In a pre-close trading statement for the six months ended February 28, Fenner said its two main arms, Engineered Conveyor Solutions (ECS) and Advanced Engineered Products (AEP) made strides despite some challenges.
Trading for ECS remained in line with management expectations, it said, although still below the first half of fiscal 2013 on constant currency basis, largely reflecting strong trading in Australia in the first quarter of that year.
In Australia, Fenner said ECS is seeing improving demand for its products, assisted by continued high levels of iron ore and coal extraction, which is being reflecting in higher order books.
AEP has also made progress in constant currency terms in its seasonally stronger second half, Fenner said, which is expected to have a "slightly higher weighting of revenue and operating profit than in recent years".
The company said the division's result for the first half reflected certain customer sales being deferred from the first half of the year, which are now expected to be made up in the second half of the year or in the following financial year.
Overall, Fenner said the group's financial position remains strong and expects to post net borrowings for the first half of around GBP135 million, down from GBP172 million.
Fenner said that since its interim management statement, sterling has seen relatively modest movements against all the major currencies in which its revenues are generated.
Translation of the group's results for its financial year ended August 31, 2013 using average current rates would have reduced underlying operating profit to GBP92.8 million from GBP87.1 million and underlying earnings per share to 27.5 pence from 24.9 pence, it said.
The stock was trading at 426.60 pence Tuesday morning, down 19.60 pence or 4.4%, making it the second biggest faller on the FTSE 250
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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