Member Article

Hessle polymer manufacturer Fenner’s pretax profit takes a dive

Hessle-based polymer products manufacturer Fenner plc has reported hefty pretax losses due to restructuring and a decline in the mining industry.

Pretax profit more than halved to £29.2 million from £66.4 million in 2013.

Group revenue was reportedly down 4% from £820.6 million to £729.4 million.

Exceptional items which caused this decrease included the closure of the Fenner Precision (Buffalo) and Hallite Brazil sites and the payment of deferred considerations for the American Industrial Plastics and Australian Conveyor Engineering.

Nicholas Hobson, chief executive officer, said: “The Group’s results for the year, whilst below our expectations at the start of the year, reflect another encouraging performance by our AEP division and represent a creditable outcome taking into account the impact on ECS of the deterioration in trading conditions which took place in certain parts of the global mining industry during the year.

“We have entered the financial year with the Group well placed to respond to the opportunities and challenges which we are facing.

“We are very aware of the potential impact on our end markets and the world economy generally from falls in the prices of energy and commodities and from forecasts of lower economic growth.

“Overall, the strength and resilience of our businesses mean that, in a climate of increased economic and political uncertainties, we anticipate that growth in revenue and profitability in AEP is likely to be offset by weakness in the mining market.”

This was posted in Bdaily's Members' News section by Clare Burnett .