LONDON (Alliance News) - Polymer technology firm Fenner PLC on Wednesday said profit for its first half almost doubled as all business areas keep up strong performance ahead of its takeover by Michelin.
For the six months to February, Fenner's pretax profit on a reported basis rose to GBP28.5 million from GBP13.8 million. Underlying pretax profit nearly doubled to GBP32.4 million from GBP16.5 million.
Revenue for the period was GBP354.1 million, 15% up from GBP307.4 million the year before.
Fenner is to pay an interim dividend of 2.1 pence per share, increased from the 1.4p it returned to shareholders a year earlier. Fenner had said at the time of the Michelin deal shareholders would receive an interim dividend no larger than the 2.1p announced Wednesday.
The company said all businesses "continue to perform well" with some "notable" market share gains, while its trading environments are continuing to show signs of improvement.
Revenue in its Advanced Engineering Products division increased 20% year-on-year to GBP82.6 million, with underlying operating profit increasing 57% to GBP26.2 million. In Engineering Conveyor Solutions, the figures rose 14% to GBP98.2 million and 64% to GBP16.2 million respectively.
Regarding the takeover by Michelin, it expects it to take effect at the end of May providing shareholders give their blessing on May 16.
Fenner agreed mid-March an all-cash takeover deal with Compagnie Generale des Etablissements Michelin SCA, valuing the company at approximately GBP1.20 billion.
Michelin is to pay 610.00 pence per Fenner share, giving the GBP1.20 billion valuation. This compares to a market capitalisation of around GBP925.4 million based on its closing price on the day of the announcement.
Fenner shares were up 0.2% at 609.25 pence early Wednesday.