Fenner sees FY at top end of market expectations

Industrial polymer-based manufacturer Fenner said on Thursday that its full-year results are likely to be at the top end of the current range of market expectations and in line with guidance given at the annual general meeting in January.

Fenner said its performance was helped in part by the translation effect on overseas earnings from the depreciation of sterling in recent months, following the UK’s vote to leave the European Union.

In a pre-close update, the group said trading in the last two months of its financial year ending 31 August has remained as expected.

Net debt at the end of August stood at around £150m notwithstanding the significant adverse translation impact on the group's US dollar borrowings from the weaker pound, thanks to a good working capital performance.

The group is due to release its results for the full year on 16 November.

Numis said the update suggests that end markets have stabilised, as reported elsewhere in the mining sector, and that the cost actions are having the required impact.

“The valuation may not look cheap on short term profitability basis…but we are somewhere near the low point and as earnings recover so the valuation will start to look increasingly attractive,” the brokerage said.

At 1015 BST, Fenner shares were up 6.4% to 187.60p.