10th Jan 2007 10:30
Fenner PLC10 January 2007 10 January 2007 Fenner PLC AGM STATEMENT 2007 In my statement to shareholders of 8 November 2006, I reported on a furthersuccessful trading performance for the Group and am pleased to confirm that thistrend has continued subsequently. In the year to 31 August 2006 revenue amounted to £379.0m (2005 £303.6m)generating an increased operating profit of £33.7m (2005 £16.3m). Profit beforetaxation rose 136% to £29.3m (2005 £12.4m) delivering increased basic earningsper share of 13.0p (2005 6.6p). The strong profit performance and prospects for further growth enabled the Boardto recommend an increase in the final dividend to 4.025p (2005 3.85p) which,together with the interim dividend of 1.975p (2005 1.975p), represents a totalfor the year of 6.0p (2005 5.825p) and a 3% increase over the prior year. Thisfull year dividend was covered 2.2 times by last year's earnings. The conveyor belting businesses outside North America have performed well in theopening months, particularly in Australia, where the strength of our serviceoperations adds to our reputation for quality product and support for our majorcustomers. The customary seasonal slowdown in North America in the final monthsof the calendar year has enabled good progress to be made on improvingefficiency, particularly in Atlanta. Significant time has also been invested instrengthening long-term relationships with major target customers. We areconfident that the anticipated benefits from this initiative will be reflectedin our order flow during the second half year. The specialist polymer businesses have made a promising start to 2007 withparticularly encouraging trading from the FAST sealing operations. Our initialinvestment in capital equipment at the recently acquired EGC unit in Houston hasresulted in immediate productivity improvements. The US Dollar and SA Rand have continued to weaken, reducing operating profitslightly and borrowings more significantly. However, the disposal of ournon-core 50% interest in the South African KSB business offsets this translationeffect to some extent. Our strong trading positions, together with 4 months of solid performance, leadus to remain confident of a positive outcome for the year. Colin CookeChairman -Ends- For further information please contact: Fenner PLC 01482 626501Mark Abrahams, Chief Executive Weber Shandwick Square Mile 020 7067 0700Nick Oborne/Hannah Marwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Fenner PLC