LONDON (Alliance News) - Engineer Fenner PLC on Wednesday said its pretax loss multiplied in the first half of its financial year as its exposure to oil and gas and other commodities markets continued to weigh on its results.
Fenner said its pretax loss for the six months to the end of February was GBP23.1 million, compared to a GBP5.1 million loss a year earlier, in line with its expectations.
Revenue fell to GBP276.8 million from GBP347.6 million. Medical sales in the group's Advanced Engineered Products division were up, and industrial sales were broadly flat in the half, but sales in the oil and gas sector continued to fall.
Engineered Conveyor Solutions, meanwhile, was hit by its exposure to the struggling mining industry, though Fenner said some of the effects were offset by cost cuts.
The group will pay a 1.0 pence per share interim dividend, down from 4.0p as part of a rebased payout policy.
"The difficult market conditions that have characterised the last four reporting periods continue although we have now reached a point where our refocusing, restructuring and cost-saving programmes are substantially mitigating the ongoing volume challenges we are experiencing," said Executive Chairman Mark Abrahams.
"Despite challenging market conditions, overall our expectations remain unchanged," he added.
Fenner shares were down 1.7% to 131.00p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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