Fenner PLC Regulatory News (FENR)

16 July 2014

Fenner PLC ("Fenner" or "the Group")

Interim management statement for the period from 1 March to 15 July 2014

Overview

The Group's recent trading results have been in line with the guidance provided in May 2014.

During the period, the Group has made good progress in re-aligning and restructuring its activities to suit the local market conditions in each of the various regions where the Group operates.

ECS

In the USA, sentiment in the coal industry is unchanged and remains weak. Whilst there has been no further deterioration in ECS's trading position since the Group's trading update in May, there are no signs that any improvement is imminent and measures are being taken to manage costs and capacity across the business.

In Australia, ECS is continuing to benefit from high levels of mineral extraction, although lower commodity prices continue to impact miners' profitability. ECS has an active programme of contract tendering and, with its modern plant and skilled workforce, expects to maintain its share of the belting market in Australia.

Notwithstanding difficult market conditions in certain of its traditional markets, ECS is continuing to make progress in newer territories.

AEP

During the period, the performance of AEP has continued to be encouraging, with trading across the division having been in line with expectations. The recent Capital Markets Event highlighted the growth opportunities in the oil & gas and medical industries, which together account for around 40 per cent of its revenue. We are encouraged by the continuing contribution to the division's results from steady growth businesses such as Fenner Drives.

In support of continuing organic growth and as previously indicated, AEP has increased its revenue investment in innovation and leadership teams this year, and this higher level of investment is expected to be at least maintained in future years.

Financial position

The Group's financial position remains strong with borrowings in line with expectations.

Financial calendar

The Company expects to issue a pre-close statement on 9 September and to release its results for its current financial year on 11 November 2014.

Forward-looking statements

Certain statements contained in this statement constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fenner, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements.

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Notes to editors:

Fenner PLC is a world leader in reinforced polymer technology, providing local engineered solutions for performance-critical applications. The Group operates through two divisions:

Engineered Conveyor Solutions. The ECS division, trading under the Fenner Dunlop, Fenner and Dunlop brand names, is a recognised leader in the global conveying market. The division offers a unique, comprehensive suite of products and services, which serve the conveying needs of mining, power generation and bulk handling markets.

Advanced Engineered Products. The AEP division uses advanced polymeric materials and technical expertise to provide high value-added solutions to customers' most challenging engineering problems and to identify and develop new opportunities. Customers are spread across a variety of end-user segments, including oil & gas and medical which account for some 40 per cent of divisional revenue, together with construction, transportation, automation and general industrial. AEP's trading names are recognised globally and include Hallite, CDI Energy Products, EGC Critical Components, AIP, Fenner Precision, Fenner Drives, James Dawson, Mandals, Secant Medical and Xeridiem.