12th Mar 2009 07:00
12 March 2009
Fenner PLC ("Fenner")
Pre-Close Trading Update
Our coal related businesses representing the majority of the Conveyor Belting division have continued to perform well with strong sales and order flows following an encouraging start to the calendar year. In the oil and gas sector our process seals business has performed satisfactorily and the technical weaving activities have made a good contribution to first half profits.
The industrial businesses representing the majority of Advanced Engineered Products and about one third of Conveyor Belting have seen a continuation of the economic downturn exacerbated by customer de-stocking. As a consequence, like for like industrial volumes in the first half are approximately 16% down on the same period last year. In some of our businesses there are very early signs that customer de-stocking may be coming to an end with volumes stabilising, albeit at a level well below last year.
Our first half is a typically weaker trading period and overall, notwithstanding the industrial markets, we expect to report an underlying operating profit for the first half approximately 10% below the same period last year.
Net debt at 28 February 2009 increased to approximately £190m. The devaluation of sterling, particularly against the US dollar over the last 12 months, has added approximately £40m to net debt. Despite this adverse exchange rate impact, at 28 February 2009 the Group remained in full compliance with its banking covenants and net debt at this date remains in accordance with our expectations.
We expect to report our interim results on 29 April.
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For further information please contact:
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Fenner PLC |
01482 626501 |
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Mark Abrahams, Chief Executive |
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Richard Perry, Finance Director |
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Weber Shandwick Financial |
020 7067 0700 |
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Nick Oborne/ Stephanie Badjonat |
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