Fenner expects 'modest' full-year growth at constant currency

11th Mar 2014 07:08

- Small movements in FX rates since last update- 'Modest' growth expected this year at constant currency- Current trading mixedFenner, the FTSE 250 company which makes industrial belting and other polymeric materials, said that despite a lower first half than last year, it expects to see growth over the full year.As previously indicated, numbers for the six months ended February 28th will be below last year's as a result of tough comparatives owing to very strong trading in Australia the year before.However, Fenner said: "The board anticipates that, in constant currency terms, the outcome for the year as a whole will show modest growth compared with the previous year."The company notified investors in January that a stronger pound would affect results this year, but said on Tuesday that there have been only small movements in exchange rates since its last update.It said that current rates would have reduced last year's operating profit by £8.7m, slightly better than the £9m adverse impact using exchange rates at December 31st.In the Engineered Conveyor Solutions (ECS) division, first-half results were lower than last year due to tough comparatives. The company said that sentiment among its coal mining customers remains "cautious, reflecting low commodity prices"."In the second half of the year, ECS's business is expected to see some benefit from higher levels of coal consumption and generally lower US coal stock piles, although the group remains mindful of the potential impact of corporate activity in North America and uncertainty in the Ukraine," the company said.Meanwhile, in Advanced Engineered Products (AEP), the performance was said to be "encouraging", particularly in the oil and gas industry. However, Fenner said that the division's results will reflect certain customer sales that were deferred into the second half or next financial year, along with increased investment.BC