Fenner's (FENR) pleasing half-year performance is best illustrated by the strong recovery in underlying margins at its engineered conveyor solutions division. The 240 basis point improvement to 6.1 per cent was largely due to in-house efficiencies rather than higher orders for replacement belts. This mirrored the rise in the group’s underlying operating margin, while underlining our January assertion that “self-help measures should flow through into improved margins in 2017” .
The restructuring of the Yorkshire-based manufacturer is thus delivering tangible benefits, and although activity levels in some of its end markets remain subdued, it is gaining market share through new product launches and growing demand for higher technical specification; the latter dynamic should also bolster the margin progress.