First half results in line with guidance
Advanced Engineered Products ("AEP") achieved higher revenues, higher underlying operating profit and increased margin
Engineered Conveyor Solutions ("ECS") reported lower revenues and profits in challenging market conditions
Group-wide emphasis on cost control and cash flow has resulted in overheads being reduced by £9m (annualised) and improved management of working capital
Acquisition of Charter Medical in January has enhanced Fenner's presence in the medical industry
Interim dividend unchanged at 4.0p per share
Nicholas Hobson, Chief Executive Officer, commented:
"The Group's results for the period reflect a good performance by the AEP division and a reduced result from the ECS division which faced challenging market conditions.
AEP's industrial, medical and other non-oil speciality polymer businesses, which account for some 70 per cent of AEP's revenue, are expected to continue to perform well. The financial results for the second half of the year will also benefit from the acquisition of Charter Medical.
The remainder of AEP is seeing an impact from lower levels of activity in the oil & gas industry as a result of sharply reduced oil and gas prices. Order intake started to decline in February; the timing and extent of the decline are within the range of our planning assumptions.
ECS expects to see a continuation of the difficult trading conditions across all of its regions.
In response to the trading conditions being faced, cash overheads across the Group have been reduced. The Group will continue to closely manage all aspects of its costs and cash flow.
Taking into account the management actions we are taking in response to the trading conditions, the Board's expectations for the outcome for the year remain substantially unchanged overall."
