(FENR) Fenner

11 January 2012

Fenner PLC ("Fenner")

AGM Statement 2012 and Interim Management Statement

Fenner is issuing the following Interim Management Statement for the period from 1 September 2011 to 11 January 2012, ahead of its Annual General Meeting to be held at 10.30am today. 

Current Trading

Fenner has continued to experience the strong levels of demand seen at the end of the last financial year.   First quarter profitability is significantly above the comparable period and order rates are in line with expectations.

Most of the growth in the first quarter has been generated organically. The effect of businesses acquired has complemented our growth profile and is helping to establish a broader, more resilient group.

At the beginning of the second quarter, Fenner acquired Allison Custom Fabrication Inc, based in Allison, Pennsylvania, USA, which specialises in the design, engineering, machining and metal fabrication of customised material handling equipment. This acquisition strengthens the Fenner Dunlop strategy of being the supplier of choice for Engineered Conveyor Solutions in the Americas, enabling mining customers to enjoy integrated solutions for improving the safety and total cost of ownership of materials handling, in both underground and above ground applications. 

Revenues in the Engineered Conveyor Solutions Division have been bolstered by strong demand from the mineral extractive industries.  Profits have benefitted from the continuing higher factory utilisation and efficiency seen in the second half of last year.

Advanced Engineered Products divisional revenues and profits have grown compared to last year, due to high demand and market share gains in oil and gas, medical and industrial OEM markets.  However, the growth rate was slowed by moderate distributor de-stocking.

Net borrowings, after acquisitions payments, seasonal outflows and investments to support growth, are in line with our expectations.

Outlook

While we note the uncertainty over the global economic outlook, we enter the seasonally quieter  second quarter with the expected levels of order visibility and our businesses performing strongly. Revenue growth rates will slow as we enter a period of tougher comparatives, but we expect to make continued good progress.

Certain statements contained in this document constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fenner, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements.

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