Fenner swings to profit, sees FY operating profit ahead

Fenner swung to a profit in the half year ended 28 February as revenue rose and the group grew its market share.

The company, which makes industrial belting and other polymer-based products, generated a pre-tax profit of £13.8m compared to a loss of £23.1m the year before, as revenue increased to £307.4m from £276.8m.

Underlying earnings per share were up 117% to 6.3p and the dividend per share was lifted by 40% to 1.4p.

Meanwhile, the underlying operating margin increased to 7.8% from 5.4% in 2016, reflecting operational improvements and efficiencies across many of the group's operations. In addition, as the period progressed, there were increasing benefits from operational gearing as certain businesses generated revenue growth.

Chief executive Mark Abrahams said: "It is pleasing that the restructuring of the group has created a platform from which we are now growing and making steady market share gains. We look forward to maintaining this momentum."

Fenner said it anticipates results for the year to be above previous expectations in terms of operating profit, with a further benefit to earnings from a lower tax rate in the current financial year.

At 1008 BST, the shares were up 3.6% to 337.50p.