The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Fenner has been extremely active on the merger and acquisitions front, ramping up its mining and energy-related businesses across the globe. This has included the purchase of Singapore's Multiseals (28 April 2011) and Transeals in Australia (1 September 2011). These seals production and distribution businesses serve the resources sector. The firm's latest acquisition, Pennsylvanian belt builder Allison Custom Fabrication (1 December 2011), enhanced the product offering to the North American coal industry.
The FTSE 250 constituent's improved return on sales owes much to a growing focus on high-margin products, particularly in the medical and resources sectors. Its mining and energy offerings provide strong exposure to the fast-growing shale gas and thermal coal sectors, the latter representing the firm's predominant end market.
Fenner revealed margins across both its divisions - Engineered Conveyor Solutions and Advanced Engineered Products - had improved. This was owing to operational efficiencies witnessed in the latter part of 2011. Citigroup estimates group-wide margins will rise to 13.8% this year from 12.7% in 2011 before marching to 14% and 14.1% in 2013 and 2014 respectively.
Fenner (FENR) ahead of next week's (25 April) interims which should underline the £821 million cap's continuing strong growth prospects. The numbers should prompt a reversal in the de-rating which has resulted in Fenner's 13% fall from last month's 483.7p all-time high. On a price/earnings (PE) multiple of 12.2, the conveyor belt and industrial seals builder is cheap versus the high-teens PEs of its peers. The Yorkshire-based company noted in its pre-close update last month (8 March) first-half operating profit was 'significantly' ahead of 2011. It also reported the order book remained healthy. Increasing demand from the mineral extraction and energy sectors combined with market share gains to underpin solid growth.
John Sheldrick, a Non-Executive Director of FTSE 250 polymer technology firm Fenner, bought himself 10,000 shares just one day after the company unveiled a 53 per cent increase in pre-tax profit. Sheldrick purchased the shares for 440p each, for a total of £44,000. This represents 0.005% of Fenner's total issued shares and is Sheldrick's entire holding. On the same day, Sheldrick's fellow board member, Vanda Murray, also bought a stake in the firm, buying up 2,000 for 446.88p each (equal to 0.0001% in the company).
Peel Hunt upgrades Fenner from hold to buy, target price raised from 490p to 540p.
Mark Abrahams, Chairman, commented: "Trading was very strong in the first half as growth drivers in our core businesses remained positive, underpinned by continuing buoyant demand from mineral extraction and energy sectors. "The fundamentals on which our strategy is based remain strong and the quality of our earnings continues to improve. Notwithstanding the influence of the current macro-economic environment on some of our markets, our order book remains healthy, we are trading in accordance with expectations and we remain confident in our ability to continue to make progress in the second half of the year."
Fenner PLC, a world leader in reinforced polymer technology, today announces its results for the half year ended 29 February 2012. Highlights · Revenue increased by 24% to £412.0m; organic revenue growth was 18% · Underlying operating profit1 increased by 52% to £55.7m · Underlying profit before taxation2 increased by 53% to £48.1m; profit before taxation increased by 57% to £41.7m · Underlying earnings per share2 increased by 57% to 17.1p · Interim dividend increased by 32% to 3.50p per share, reflecting the Board's confidence in the enhanced quality of the Group's earnings · Continued underlying margin growth, up 250bps to 13.5% · Strong trading by both Engineered Conveyor Solutions ("ECS") and Advanced Engineered Products ("AEP") - ECS underlying operating profit1 increased by 62% to £39.8m on revenues up 25% to £295.0m - AEP underlying operating profit1 increased by 23% to £20.5m on revenues up 20% to £117.0m · Growth drivers in core markets remain positive · Group confident of continued progress in the second half
http://www.investegate.co.uk/Article.aspx?id=201204250700159952B
Nicholas Hobson, CEO of Fenner said "This is a significant development for the Fenner Dunlop Engineered Conveyor Solutions offering in the Americas. We have again expanded our capabilities and have broadened our offer to manage the life cycle of our customers' conveyors. This acquisition further consolidates Fenner Dunlop's position as the leading supplier of conveyor products and services to the North American markets."
Acquisition of Allison Custom Fabrication, Inc. ("Allison") Fenner is pleased to announce that today its wholly owned subsidiary Fenner Dunlop Americas, Inc., ("Fenner Dunlop") has acquired substantially all of the operating assets of the business being conducted under the name "Allison Custom Fabrication" from a group of related privately owned entities based in Allison, Pennsylvania. The unaudited value of the gross assets being acquired was $6.471m as at 31 December 2010. Allison specialises in the design, engineering, machining and metal fabrication of customised material handling equipment, primarily for the mining markets of Pennsylvania and West Virginia. It has a strong reputation amongst its customers in the underground coal industry for responsive and technically advanced engineering solutions for conveying systems and structure. This latest acquisition will strengthen the Fenner Dunlop strategy of being the supplier of choice for Engineered Conveyor Solutions in the Americas. Combining Fenner Dunlop and Allison will enable mining customers to enjoy integrated solutions for improving the safety and total cost of ownership of materials handling, in both underground and above ground applications.
http://www.investegate.co.uk/Article.aspx?id=201112010700111244T
Panmure Gordon upgrades Fenner from hold to buy, target price raised from 410p to 440p.
Did not see this going back to 3.20 but was surprised my order at 3.40 went through on a dip & very happy to be back in after taking profits at 3.65 (for previous post read 3 for the 2's mentioned - senior moments)!!!
Numis upgrades Fenner from add to buy, target price unchanged at 455p.
Fenner PLC PRE-CLOSE STATEMENT Fenner PLC today provides the following update on trading for the year ended 31 August 2011. The group expects to announce its results for the full year on 9 November 2011. Trading in the final quarter of the financial year has been particularly strong in both the Conveyor Belting and Advanced Engineered Products divisions. In the Conveyor Belting division, we have experienced continuing positive market conditions which, together with a healthy order book and our achievement of the required customer service levels, have enabled us to deliver a robust trading performance. The momentum developed in the Advanced Engineered Products division has been sustained through the final quarter to deliver a strong trading result. Demand for our niche, performance-critical products has been high as the expansion of our product range and geographical coverage continued. In light of these performances we anticipate full year results to be ahead of market expectations. Net debt is expected to be less than £110m. Whilst we note that uncertainty about the strength of the global economy has increased, the demand levels remain in line with our expectations.
http://www.investegate.co.uk/Article.aspx?id=201109060700096671N
Was stopped out at just over 2.65 & we are now retracing to the 2.40 levels. Will look to buy again, if we get back to 2.20.
Not far from your 375 figure as reached 367 today & have put stop in at 365 in case we have a pullback towards the recent lows of 310ish - in which case i will buy back again - 33% profit not to be sneezed at!!!
Price has been rising steadily ahead of end of year & looking for good results & positive news on the future. My only share above 25% & long may it rise!!!
Mulled, you must be fed up being the only poster on here, so thought i would add a post to keep you company!! I purchased a chunk at the last dip at 2.74, so am happy to ride this one longer term, though we may see dips with the general malaise in the market. Would only be tempted to sell over £4, which may well come later in the year but could just reduce holding & carry the remainder long term, as i agree, it seems to be a well run company with growth prospects worldwide - nice to see a UK world leading company!!!
I like this Company - potential for some good gains to take her back to the 375+ territory
Nicholas Hobson, CEO of Fenner PLC said "This is an exciting development for our Australian seals business. It improves our coverage, expands our product offering and strengthens Hallite's position as the leading supplier of seals to the Australian hydraulics market."
Fenner to acquire Transeals Pty Ltd ("Transeals") Fenner is pleased to announce that its wholly owned subsidiary Hallite Seals Australia Pty Ltd ("Hallite") has today exchanged contracts to purchase 100% of the share capital of Transeals, which is a privately owned company based in Perth, Australia. The unaudited value of the gross assets acquired was A$5.586m. as at 30 June 2011. The transaction is expected to complete in early September 2011. Transeals manufactures and distributes seals used in hydraulic equipment, currently serving the western parts of Australia. This strategic acquisition allows Hallite, which is mainly east coast based, to develop its aftermarket presence in the buoyant mining and oil and gas markets of Western Australia. With the capability for same day or early next day delivery, the combination of Hallite and Transeals will offer unparalleled availability of seals throughout Australia.
http://www.investegate.co.uk/Article.aspx?id=201108230700088308M