Fenner notes market improvement

Profits slumped at Fenner last year, but the mining conveyor belt maker now notes 'early but clear signs of underlying improvements in markets and an end of customer destocking in recent months'.Revenue in the year to August increased by 14% to £499m (2008: £438m), assisted by acquisitions, while underlying operating profits decreased to £41.3m from £49.3m. Underlying pre-tax profit was in line with expectations at £31.1m (2008: £42.1m) while statutory profits fell sharply to £5.6m from £36.3m. The final dividend of 4.4p per share gives a maintained total dividend for the year of 6.6p per share. Conveyor Belting revenues increased by 24% to £361.8m (2008: £292.2m), benefiting from robust coal sector demand, while underlying operating profit was £30.8m (2008: £29.1m).Advanced Engineered Products revenues were £137.6m (2008: £145.6m) and underlying operating profit was £15.8m (2008: £26.1m). Signs of improvements around the year end and enquiry levels are picking up, Fenner added.Net cash from operating activities improved to £36.4m (2008: £28.2m) and net debt is in line with forecasts at £165.4m, with c£70m headroom over existing facilities.