Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Reinforced polymer technology firm Fenner said on Friday that its wholly owned subsidiary, Fenner Dunlop Australia, has agreed to acquire 100 per cent of the share capital of ACE, a privately owned group of companies based in New South Wales, Australia, which specialises in supplying engineered conveyor solutions for the design, manufacture and installation of high capacity conveyor systems. The audited value of the gross assets of ACE totalled £10.4m at the mid-year point. The transaction is expected to complete at the end of next month. The firm made the acquisition to further Fenner Dunlop's strategy of "being the supplier of choice" for engineered conveyor solutions in Australia, enabling it to offer mining customers a wide choice of integrated solutions for improving the safety and total cost of materials handling. Nicholas Hobson, Chief Executive Officer of Fenner, said: "We are passionate about making conveying safe, more reliable and cost effective. This is a significant development for the Fenner Dunlop Engineered Conveyor Solutions offering in Australia, through which we are growing by strengthening our capabilities to effectively manage the lifetime cost of our customers' conveyors throughout the business cycle. "This acquisition consolidates Fenner Dunlop's position as the leading supplier of conveyor products and services to the Australian markets and complements the acquisition in North America of the Allison Custom Fabrication business
Fenner: Jefferies cuts target from 565p to 490p, buy rating kept; Panmure Gordon cuts target from 500p to 465p, buy rating kept.
Reinforced polymer technology firm Fenner said current trading remains in line with company expectations, despite continuing macro-economic uncertainty, with results for the year ended 31st August 2012 expected to show substantial growth in revenues and profit. Fenner said the fundamentals of its core markets remain strong and the Southern Hemisphere and European operations of the Engineered Conveyor Solutions division performed strongly. As previously stated, ECS experienced some slowing of order rates from the US coal market in the wake of an exceptionally mild winter and uneconomic shale gas pricing. "As anticipated this has been reflected in our activity levels, although US coal stockpiles have now been decreasing from historic highs for several months. Our order book for the division remains satisfactory," the group explained. Meanwhile its Advanced Engineered Products division performed well, generating seasonally higher margins in the second half. Fenner added: "We continue to deploy our strategy to exploit growth opportunities through investment in additional capacity in selected markets across both of our operating divisions." "Since the year end we have completed three small bolt-on acquisitions; Mandals, Norwegian Seals and American Industrial Plastics, which support our growth strategy in AEP's oil & gas and medical activities." Strong cash flows through its final quarter have resulted in year end net borrowings of less than £100m.
Our Advanced Engineered Products division ("AEP") performed well, generating seasonally higher margins in the second half. The fundamentals of our core markets remain strong and we continue to deploy our strategy to exploit growth opportunities through investment in additional capacity in selected markets across both of our operating divisions. Since the year end we have completed three small bolt-on acquisitions; Mandals, Norwegian Seals and American Industrial Plastics, which support our growth strategy in AEP's oil & gas and medical activities. Strong cash flows through our final quarter have resulted in year end net borrowings of less than £100m, providing a secure base for future investment. Current trading remains as expected against a backdrop of continuing macro-economic uncertainty. The group expects to announce its results for the full year on 7 November 2012.
Pre-Close Statement Fenner anticipates that its financial results for the year ended 31 August 2012 will be in line with expectations showing substantial growth in revenues and profit against the previous year. The Southern Hemisphere and European operations of the Engineered Conveyor Solutions division ("ECS") performed strongly. As highlighted in our Interim Management Statement in July, ECS experienced some slowing of order rates from the US coal market as customers aligned output with consumption in the wake of an exceptionally mild winter and uneconomic shale gas pricing. As anticipated this has been reflected in our activity levels, although US coal stockpiles have now been decreasing from historic highs for several months. Our order book for the division remains satisfactory.
http://www.investegate.co.uk/Article.aspx?id=201209100700068336L
Happy days, let's see if it can carry on the upward trend and stay above £4! GLA
Nick Hobson, CEO of Fenner PLC, commented: "Mandals is a leader in an area of reinforced polymer technology which complements our existing operations, particularly James Dawson. In addition, the end markets served by Mandals enjoy attractive, long term growth characteristics which will support Fenner's strategic growth objectives".
Acquisition of Mandals AS & Mandals Technology AS ("Mandals") Fenner is pleased to announce that its wholly owned subsidiary, Fenner Norway AS, has today exchanged contracts to purchase 100% of the share capital of Mandals, a privately owned group of companies based in Norway and Sweden. Mandals is a manufacturer of innovative lay flat and specialty hoses for use in demanding applications and of circular looms for the manufacture of the woven fabric used in the production of hoses. It is an acknowledged market leader in its industry, with products sold around the world. The acquisition builds on the expertise of Fenner's Advanced Engineered Products Division ("AEP"), providing performance critical applications to the agricultural, infrastructure, potable water and oil and gas markets. The audited value of the gross assets being acquired was NOK 91.3m (GBP 9.9m) as at 31 December 2011. The transaction is expected to complete in early September 2012.
http://www.investegate.co.uk/Article.aspx?id=201208100700047295J
Glad to see this at least only drop 2%, hopefully this will re-bound slightly by the end of the month as the fundamentals remain strong, this is undervalued a lot at this price.
Good to see The TImes giving this some coverage last week, stated the SP fall is overdone, even though coal / gas price has fallen back, still looks very cheap p/e under 10. This goes ex-divi on 25th july so hopefully we'll see a further rise up to this date
N+1 Brewin maintained its "buy" recommendation for Fenner (FENR) with a 450p target price. The reinforced polymer manufacturer is looking to increase its product offering from just supply to full life cycle management, and the broker noted good success already in Australia and South America. Brewin added that the firm is also aggressively targeting new markets such as Russia, the Middle East and Africa. However, the broker raised some concern over uncertainties in the US coal market, which it said could hold the share price back in the short-term
falling knife eh? ... fundamentals are still very good
me too, in today, seem very good value. Video's published in April on their website interviewing CEO and group FD were interesting
Outlook Overall, recent trading supports our confidence in meeting our expectations for the full year. Capital Markets Day Fenner will be hosting a Capital Markets Day at the ECS facility in Drachten, The Netherlands on 18 July. No trading information or guidance will be provided beyond the contents of this statement.
Interim Management Statement Fenner today issues the following Interim Management Statement, which covers the period from 1 March 2012 to date. Current Trading The Group has continued to make solid progress during the period, achieving revenue and earnings in line with expectations. The Engineered Conveyor Solutions ("ECS") division continued to operate at high levels of factory utilisation and operating margins were in line with previous run rates. Notwithstanding strong demand in other regions, ECS has experienced some slowing of order rates from the US coal market as our customers align output with consumption in the wake of an exceptionally mild winter and uneconomic shale gas pricing. There are already early signs that coal stockpiles are returning to more normal levels with a recovery in US natural gas prices, and of an increase in US coal export activity. Our capital investment programmes are proceeding according to plan and will bring welcome additional capacity to operations in The Netherlands and Australia in spring 2013. Our Advanced Engineered Products division has continued to perform in line with expectations, experiencing seasonally higher operating margins as we progress through our second half period. On 18 May 2012 the Group completed the refinancing of its operating bank facilities with a £100m five year revolving credit line with its primary banks. The strong balance sheet and satisfactory gearing level will enable us to continue to pursue our accelerating organic and acquisitive growth plans.
http://www.investegate.co.uk/Article.aspx?id=201207120700064810H
FENR came up on my system a couple of days ago and I am now in - http://theartofstockpicking.blogspot.co.uk/ - GLA
MINING SLOWDOWN MAY HIT FENNER A slowdown in investment will have a magnified impact on equipment suppliers: the accelerator effect of economics. Stocks that have ridden the mining boom with great success, such as conveyor belt supplier Fenner (LSE: FENR), could be riding the down escalator if and when reduced investment is reflected in cut backs on equipment orders. I'm not saying that Fenner isn't still a great share. Softening in demand for new mining equipment may be muted by supply of replacement parts and its non-mining markets. But shareholders in Fenner and similar companies will want to keep a close watch out for signs of a falling order book. There's a good chance these developments will affect you even if you don't invest in the mining sector or companies that supply it. Miners represent about 12% of the FTSE 100, so what's bad for them is bad for the index. Right now, these worries pale into insignificance compared to the turmoil in Europe, but it will pay to keep a close eye on the mining sector. Read the full article here: http://uk.finance.yahoo.com/news/end-mining-supercycle-130605425.html
Broker estimates put earnings per share (EPS) for the financial year ending August at 34.5p, up 23% from 28.1p in 2011. EPS is predicted to grow an additional 12% year-on-year to 38.5p in 2013
Collins Stewart comments just 16% of Fenner's sales originate from Europe, so it should weather the region's lasting macroeconomic turbulence better than the vast majority of its industrial peers. By comparison more than half of all turnover is generated from the Americas and just over a quarter emanates from the Asia Pacific region. Peel Hunt expects net debt of £125 million to drop to £100 million by the year-end. This, it adds, will leave the business with a net debt to earnings before interest, tax, depreciation and amortisation ratio of just 0.7, giving scope for further acquisition activity.