A manufacturer and distributor of reinforced polymer products. It operates in two segments, conveyor belting and advanced engineered products and is considered a world leader in reinforced polymer technology. I have a holding in my income portfolio (epic code: FENR).
Fenner issued their pre-close trading statement for the year ended 31 August, disclosing that its results will be in line with market expectations.
Net debt at £125m is better than expected and shows a substantial reduction from the £171.5m at the half year. They have also reconfirmed management's expectation of a return to growth for this financial year.
With a yield above 3% and expected to be well covered by earnings at over 2.5x, Fenner with the added benefit of earnings growth this year, is likely to become an attractive addition to income portfolios. This should result in an improving share price over the next few months approaching its previous 52 week high of around 440p. The shares this morning are up over 5% to 390p.
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