Fenner still confident of return to growth

18th Jul 2013 07:08

Reinforced polymer technology firm Fenner said it has continued to make progress and reiterated results for the full year are expected to be in line with company expectations.The FTSE 250 group, which makes heavyweight belts for industries such as mining, said notwithstanding current conditions in the Australian mining industry, it continues to look forward to a return to growth in its 2013/14 financial year as prospects in Advanced Engineered Products (AEP) and the majority of the Engineered Conveyor Solutions (ECS) businesses improve.Trading for the period from March 1st to July 17th 2013 at its ECS division in North America improved despite what is normally soft demand in the second half of 2012. In contrast, ECS's business in Australia was, as anticipated, hit by spending pressures in the mining industry. ECS's businesses in other locations generally continued to trade well, Fenner said.In the AEP division, activity levels improved following the destocking experienced in the early months of the financial year. Fenner Advanced Sealing Technologies enjoyed particularly good trading, helped by its exposure to the oil & gas industry as well as recent acquisitions. Other AEP businesses have also generally performed well and in line with previous expectations, the group said.Otherwise Fenner said its balance sheet remains strong with borrowings at a level consistent with management's expectations. CJ