Fenner moves up value chain

Fenner, a Yorkshire-based manufacturer of industrial belts, seals and other specialist components, had foreshadowed results "towards the top of the current range of market expectations", but the full-year figures represent the first time in three years that the group has recorded half-on-half progress.

End markets remain mixed, though it's certainly true that prices and general industry sentiment are now more positive across the wider resources complex. Fenner's plans to reposition the business to take account of long-term industrial trends aren't realisable overnight, but there are signs, including a substantially reduced cost base, that indicate real progress. A focus on re-engineering and moving into new sectors is also moving the group up the value chain, aiming to expand margins across the product range and reduce vulnerability to industrial cycles.

Investec forecasts cash profits of £69m for the year ending August 2017, with adjusted EPS of 8.7p, rising to £74.5m and 11.2p in 2018 (from £63.9m and 8.1p in 2016).