Hull, UK - Major conveyor belting group Fenner plc said 6 Sept that in the final two trading months of its 2010 financial year the group saw "sustained momentum in our performance giving rise to a significant year on year increase in our underlying operating profit performance."
According to the UK-based group, the trading environment for its conveyor belting operations in the mining sector, underpinned by thermal coal extraction, remains strong. As well as seeing volume improvements, Fenner said process efficiencies are "generating increasingly high margin run rates in these operations."
Fenner said its Advanced Engineered Products division, which makes some polyurethane parts, has returned to its historic margin run rates and seen improvements across all operations.
"In light of these performances we anticipate full year results to be at the top end of our expectations for 2010," said Mark Abrahams, chief executive.
The group estimates its net debt at less than £115 million.
"We enter the first quarter of our 2011 financial year with confidence. Those of our businesses with order horizons have robust visibility and our just-in-time operations are experiencing satisfactory throughput rates. New product initiatives and benefits from our recent investment programmes are expected to enhance operating margins through 2011. Our acquisitive growth programme remains ongoing and is expected to yield incremental benefits in the current year," said Abrahams.