Engineering group Fenner said its profits for the year to end August would be at the top end of City expectations in a bullish trading update. Management cited a “strong trading environment” for the reinforced conveyor belts it sells to emerging-world coal miners, and added that Fenner's massive capital spending is finally paying off with higher profits margins. Its Advanced Engineering Products division, which sells everything from specialist seals to high-tech fabrics for medical implants, is also back to historic margin levels after a tough recession.
Management reiterated its commitment to making bolt-on acquisitions - it for this express purpose in April. Not all is yet spent, which is presumably one reason why net debt - often a problem for Fenner - remains comfortable at £115m.
When: 6/08/10
Price: 223p
Performance to date: -2%
