Fenner PLC Regulatory News (FENR)

7 July 2017

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

Trading update

Fenner is providing its customary trading update covering the period from 1 March to 7 July 2017.

The Group has continued to make strong progress, principally in new product development, augmented by a further increase in the US rig count.

Business review

AEP's performance has continued to strengthen across each product area. In particular, our Medical businesses are experiencing strong revenue growth from the development of new customer projects. This provides an encouraging platform for long term growth in line with our plans. In Oil & Gas, the growing order book is now translating into increased sales. Our Industrial businesses are performing ahead of last year, reflecting new product launches.

ECS continues to deliver the planned improvements.

Financing review

Cash flow during the period has remained in line with expectations.

On 1 June, US$90 million of 5.78% Senior Guaranteed Loan Notes matured and, as planned, were repaid at par out of the Group's cash deposits. This will reduce the ongoing interest charge accordingly.

Outlook

Trading across the Group remains positive and, on the basis of the improved outlook, most notably in the medical businesses, the Board anticipates that the Group's operating profit for the financial year ending 31 August 2017 will be comfortably ahead of its previous expectations, with the added benefit of a reduced interest charge going forward.

Financial calendar

The Group expects to release its results for its financial year ending 31 August 2017 on 15 November 2017.

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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:

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).