9th Jan 2008 10:30
Fenner PLC09 January 2008 9 January 2008 Fenner PLC AGM Statement 2008 and Interim Management Statement My report to shareholders of 7 November 2007 described the progress achievedduring a further successful year of trading. Group revenue for the year amounted to £380.8m (2006 £379.0m), operating profitincreased to £38.2m (2006 £33.7m) and basic earnings per share amounted to 15.0pper share (2006 13.0p). The Board is recommending a final dividend of 4.15p per share which gives atotal distribution for the year of 6.225p per share (2006 6.0p), a 4% increaseon 2006. Trading in the first quarter of our 2008 financial year has continued thepositive trends seen in the previous year. Revenues and profits in the Advanced Engineered Products division are ahead ofthe prior year with the seals business performing particularly strongly. TheFenner Drives business in the US and Europe is benefiting from strong orderflows and encouraging growth from our new e-shop. We are currently undertaking asubstantial amount of development work in this division which is expected tofuel growth for the future. The investment programme in Houston to amalgamateour dual site seals operation is progressing well and confidence levels are highfor a successful integration of the two facilities in the second quarter. Thiswill enable the operation to deliver returns commensurate with the rest of thedivision. Our conveyor belting operations in the Asia Pacific region are experiencing highlevels of demand for their products and services. Our new manufacturing unit inShanghai was opened in November 2007 and is already running at full capacity. InAustralia our belt service operations are benefiting from further investmenttogether with increased demand from our customers in their expanding markets. The UK and European belting businesses have experienced increased levels ofprofitability derived from new markets in Eastern Europe and improved servicedelivery to our customers. The North American Conveyor Belting business hasoperated at normal levels of demand in what is traditionally the slower half ofthe year. The order books continue strongly and indicate an improving margintrend after a period of some restraint. Nevertheless, the business continues totrade ahead of last year. The wide belt investment programme in Georgia and Ohiohas remained on target for commissioning towards the end of the current fiscalyear. Group revenues and profits are performing ahead of the prior year and in linewith our expectations. During the first quarter we concluded the acquisition of B-loc in the US as anaddition to our Fenner Drives business and Spliceline which complements ourAustralian service business. These two small acquisitions are integratingsatisfactorily and will extend our product range in precision products and ourvalue added sales capability in the Australian service business. Our major organic capital investment programmes remain on schedule and have beenextended in order to capitalise on market opportunities generated by ourcustomer base. Current levels of trading confirm our expectations of continued revenue andprofit growth for the current year. - ends - For further information please contact: Fenner PLC 01482 626501Mark Abrahams, Chief Executive Weber Shandwick Financial 020 7067 0700Nick Oborne/Stephanie Badjonat/Hannah Marwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Fenner PLC