Fenner's annual results hurt by currency headwinds

11th Nov 2014 09:11

Fenner, the maker reinforced polymer technology, posted a drop in annual profits and revenue, reflecting currency headwinds and difficult trading conditions in the US and Australia.Pre-tax profit fell to £29.2m in the year ended 31 August from £66.4m the previous year. Revenue dropped to £729.4m from £820.6m.The strength of sterling against currencies in other countries where the group does business offset a strong performance at its Advanced Engineered Products (AEP) arm.The Engineered Conveyor Solutions (ECS) division produced a result below last year's, primarily reflecting difficult trading conditions in the US and Australia. In the US, sentiment within the coal mining industry was cautious in the first half of the year and deteriorated in the second half. In Australia, ECS faced increased price pressure from its mining customers as they sought to offset the impact of lower commodity prices."The group's results for the year, whilst below our expectations at the start of the year, reflect another encouraging performance by our AEP division and represent a creditable outcome taking into account the impact on ECS of the deterioration in trading conditions which took place in certain parts of the global mining industry during the year," said chief executive Nicholas Hobson."We have entered the financial year with the group well placed to respond to the opportunities and challenges which we are facing. We are very aware of the potential impact on our end markets and the world economy generally from falls in the prices of energy and commodities and from forecasts of lower economic growth."The group increased its dividend 7% to 8p.