6 Jan 2017 07:00
6 January 2017 This announcement contains inside information
Fenner PLCTrading Update
Fenner PLC is providing an update on trading and outlook which, in view of its materiality, is being issued prior to its Annual General Meeting on 11 January 2017.
Trading in the first quarter has been satisfactory and reflects the progress we have been making in all our businesses.
AEP
CDI, AEP's principal oil & gas business, is seeing an improving trend in order intake and customer enquiries reflecting its strengthening market position, together with a further rise in the US rig count.
Within AEP's specialist industrial businesses, Hallite is well ahead of last year, mainly due to marketing initiatives and operating efficiencies with the other businesses broadly in line with the same period last year.
The Medical businesses are performing well and in line with expectations.
ECS
In North America, the industrial business continues to make progress as a result of the on-going refocusing/restructuring programme announced this time last year. There has been some increase in order intake from customers within the coal industry albeit from very low levels. In Europe, trading continues to be satisfactory, despite low levels of major project work.
In Australia, ECS is ahead of last year's results although, as anticipated, higher commodity prices and the general improvement in sentiment within the mining industry have not yet translated into increased orders for conveyor belt with miners remaining focused on controlling costs.
In China, restructuring within the coal mining industry has, as expected, led to ECS seeing a much reduced order intake.
Financial position
The Group's net borrowings remain in line with previous expectations.
Outlook
Whilst market conditions remain similar to those reflected in our November statement, we are performing well and gaining traction from market share gains and from our refocusing of the businesses. As a consequence, the Board envisages that the Group's results for the current financial year will be comfortably above previous expectations.
For further information please contact:
Fenner PLC
Mark Abrahams, Chief Executive Officer 01482 626500
John Pratt, Group Finance Director
Weber Shandwick Financial
Nick Oborne 020 7067 0700
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:
Advanced Engineered Products. The AEP division is a group of nine businesses that use advanced polymeric materials and technical expertise to provide high value-added solutions to customers' most challenging engineering problems across a variety of markets, generally classified as specialist industrial, medical and oil & gas. AEP's trading names include Hallite, Fenner Precision, Fenner Drives, Secant Group, Charter Medical, CDI Energy Products and EGC Critical Components.
Engineered Conveyor Solutions. The ECS division, trading under the Fenner Dunlop, Fenner and Dunlop brand names, is an established global leader in the supply of heavyweight conveyor belting and related services to the mining, industrial and bulk materials markets. ECS has leading presences in the Northern Hemisphere (principally North America and Europe) and the Southern Hemisphere (principally Australia).
Forward-looking statements
Certain statements contained in this trading update may 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. Such risks, uncertainties and other factors include, among others, exchange rates, the commodity markets, general economic conditions and the business environment.