Fenner 12-month profits roar ahead on Chinese demand

Kingston, UK -- Fenner PLC, the global engineer specialising in reinforced polymer technology, has announced an 88 percent increase in net profit for the year ended 31 August 2005. Operating profit, before goodwill amortisation and exceptional items, increased by 32 percent to £21.3m or €31.6 million (2004: £16.1m) on turnover up 20 percent to £313.0m or €465 million (2004: £260.6m).

In the Chairman's statement, the company said, "Following a solid first half performance, Group profit before tax for the year increased 88 percent to £12.0m. We have benefited from an unprecedented worldwide demand for energy particularly in China. Our capital expenditure and rationalisation programmes have created opportunities for productivity improvements throughout our operations."

The statement continued, "The acquisition of Wellington Holdings plc ('Wellington') in May has provided a valuable addition to our niche precision polymer businesses. Our strengthened balance sheet leaves us well placed to exploit these opportunities." The company said these operations have been renamed to, "Fenner Advanced Sealing Technologies, has performed above our initial expectations and has already started to deliver the synergies envisaged."

In Asia-Pacific, the company said, "Our Chinese conveyor belting operation continued to gain momentum with strong sales growth. As China's burgeoning economy surged ahead on the strength of its exports and insatiable demand for energy, coal producers endeavoured to match the requirements."

"The hose operation in Shanghai received additional investment during the year to accommodate output levels which are increasing as new business is gained. Slow but steady progress is being made towards tighter truck emissions legislation that requires changes to be made to original equipment manufacturers' designs, which in turn increases demand for our products. These positive developments underpin our capital expenditure programme for the commissioning of a dedicated world-class manufacturing hose facility capable of meeting market demand."