Fenner Share Discussion Threads

[meijiman] 15/11/2017 08:37

Tremendous. I've read through it and it's the most positive they have sounded for years.. Expect upgrades to forecasts.

[broadwood] 15/11/2017 08:11

- Fenner's underlying operating profits rose by 59% to £59.1m in the year to the end of August.

Revenues were up 14% at £655.4m and the group posted an operating profit of £53.4m compared with a loss of £14.7m last time.

Other highlights:

- Underlying pre-tax profit of £45.3m (up 95%) and underlying earnings per share of 17.7p (up 111%)

- Free cash flow of £69.0m (up 78%); net debt of £101.5m (2016: £150.0m), representing 1.2 times EBITDA

- AEP like-for-like revenue up by 11%; underlying operating profit of £43.9m (up 29% at constant currencies)

- Increased final dividend of 2.8p (up 40%) making total dividend for the year of 4.2p

Chief executive Mark Abrahams said: 'The group's results for 2017 show significant improvements over the previous year on all measures.

'These improvements illustrate the strength of the group's responses to the difficult trading conditions faced by the group in many of its principal markets over recent years and particularly reflect our continuing commitments to customer service, product development and operating efficiency.

'As we enter the new year, the outlook is strengthening.

'The group's momentum is being maintained with each of our businesses seeing opportunities and encouraging developments.

'We believe the coming year will see further progress across the group, notwithstanding the significant macro-economic uncertainties around the world.

'Overall, given the structural growth opportunities that the group has created, the board anticipates that the outcome will be above its previous expectations.'

[paleje] 15/11/2017 07:39

Strengthening outlook and likely to perform ahead of previous expectations. Nice.

...As we enter the new year, the outlook is strengthening. The Group's momentum is being maintained with each of our businesses seeing opportunities and encouraging developments.

We believe the coming year will see further progress across the Group, notwithstanding the significant macro-economic uncertainties around the world. Overall, given the structural growth opportunities that the Group has created, the Board anticipates that the outcome will be above its previous expectations...

[paleje] 13/11/2017 16:18

Pretty positive article for Fenner in yesterdays ST:-

Trump’s love for coal lifts Fenner
John Collingridge
November 12 2017, 12:01am,
The Sunday Times

The demise of King Coal has not been kind to Fenner, the East Yorkshire maker of conveyor belts.

The fuel that powered the Industrial Revolution — and helped Fenner grow from its humble beginnings in Hull in 1861 — is going out of fashion fast. Governments from Westminster to Beijing are attempting to clean up their power generation with curbs on coal.

The commodity price crash of 2014 left the engineer on the ropes, as plunging demand for minerals and oil and gas slashed demand for its belts, spare parts and hydraulic seals. Fenner hit its lowest ebb in early 2016, after a string of profit warnings that left its shares trading at just 98.5p and forced deep cost-cutting.

Investors who had the guts to plunge in then are sitting pretty. Its shares have more than tripled in value, and now stand at 335p, valuing it at £650m. Swiss activist investor and 6% shareholder Teleios has been a beneficiary, and now has a seat on its board.

Donald Trump’s love affair with coal has helped propel its shares north, as has the recovery in the oil price and America’s growing rig count. Saudi Arabia’s recent political purge has given the oil price another shot of adrenaline, which should feed through to Fenner’s order books.

This week’s full-year results should show more momentum, as well as another hike to its dividend. Cost cuts have created a business that ought to generate significant cash when orders start to flow. Analysts are factoring in a total payout of 4.2p per share, up from 3p last year, but if free cashflow improves further and debt continues to fall, there could be more scope for dividend growth.

Fenner is not just about conveyor belts. Its widgets division covers a broad spread of industries. They range from the seals used in liquid natural gas production, to parts used in keyhole surgery. While sales there have been falling, profits and margins are in the ascendency. Fenner is on the hunt for acquisitions, something unthinkable just a few years ago.

The company has been a perennial on the stock market since its float in 1937. Its 62-year-old chief executive Mark Abrahams is not quite of the same vintage, but has served an impressive stint on its board, since joining in 1990 as finance director. His plans to step aside have been complicated by the departure of his replacement, Nick Hobson, with illness.

Fenner needs clarity on a replacement for its veteran boss, but its prospects are bright. Buy.

[meijiman] 10/11/2017 14:53

Yes I think that would be a good move. Capex cannot be postponed for ever in the mining world.

[turbocharge] 10/11/2017 14:03

Wondering if I should top up - a couple of Bullish Long-Term chart signals (24 August an 31 October) suggesting a price target of 420-440...

[ashehzi] 10/11/2017 13:57

Thanks Lauders. Really appreciate that. Sure, I should have looked at it in more detail.

[lauders] 10/11/2017 13:45

I think all the research needed is stated in these words from the 7th July Trading update ashehzi:

Outlook

Trading across the Group remains positive and, on the basis of the improved outlook, most notably in the medical businesses, the Board anticipates that the Group's operating profit for the financial year ending 31 August 2017 will be comfortably ahead of its previous expectations, with the added benefit of a reduced interest charge going forward.

There was more upbeat talk in the update but that was the summary.

[turbocharge] 08/11/2017 15:50

Down she goes - the sea is a bit choppy for some reason

[lauders] 08/11/2017 01:48

I hope the news on 15th is good and we will be at new highs soon. Somewhere between the two stated figures above would do me fine in the short term ;-)

[3rd eye] 03/11/2017 09:27

FENR Fenner moving up nicely, chart above. They report on 15th Nov and last update was STRONG.

breaking out from downtrend channel Update 15th DEC, last update : "will be comfortably ahead of its previous expectations"㈳5;😎

[turbocharge] 02/11/2017 16:53

Looking interesting

31 Oct Peel Hunt 425 Buy
27 Oct finnCap 385 Buy

[3rd eye] 01/11/2017 13:24

FENR Fenner breaking out from the down trend channel, should benefit from a recovering Oil and Mining Indu. 2018 EPS Inc 16.2%... P/E 17.5😎㈳5; Next update 15th November...........last update......

Outlook

Trading across the Group remains positive and, on the basis of the improved outlook, most notably in the medical businesses, the Board anticipates that the Group's operating profit for the financial year ending 31 August 2017 will be comfortably ahead of its previous expectations, with the added benefit of a reduced interest charge going forward.

[1fox1] 01/11/2017 11:39

Yes pleased to see a reversal of the recent downtrend

[lauders] 01/11/2017 01:19

Nice move yesterday. Results on the 15th going to be good? If the trend continues then perhaps they will! Roll on the 15th!

[1fox1] 16/10/2017 11:03

Don't like the look of this. Results out in a month the 15th November.

[johnsoho] 16/10/2017 09:30

Appears to be the AT trades today that have knocked the price down.....looking at tadays published O trades they appear to be mostly buys.

[turbocharge] 05/10/2017 14:23

Looks like Setanta Asset Management Limited have been selling; their holding has gone down from 3.835% to 2.917% (sold 1,781,811)

RNS Number : 8382S
Fenner PLC
05 October 2017

Could explain why the share price is struggling to move upwards...

[turbocharge] 06/9/2017 16:51

16:35:12 347.25 58,891 UT (347.00 / 347.25) Buy

[lauders] 30/8/2017 02:33

FENR's new acquisition looks good. Certainly cover lots of products so hopefully business will be good as long as the world's economies keep going. Tensions with NK etc... are no good for anyone except weapons manufacturers.

[turbocharge] 25/8/2017 13:53

Due to continued growth and success, Fenner Dunlop Australia Pty Ltd, a division of Fenner plc, have a number of vacancies, such as

"qualified and experienced Belt Splicers to join our WA Service Operation on a full-time basis. Working on key projects across the WA region, you will be responsible for conveyor belt maintenance, repairs, installations and general maintenance, including replacement of conveyor components. These positions are offered on a 2:1 or 3:1 fly-in, fly-out (FIFO) roster from Perth if Level 3 or Port Hedland residential!"

Sign of long term stability and growth...?

(Was going to apply, but then realised my belt splicing experience is zero. Unless modifying the belt on my trouser counts).

[1fox1] 25/8/2017 11:44

Next leg up?

[turbocharge] 17/8/2017 12:58

Very quiet here....

[bouleversee] 27/7/2017 15:36

Div 1.4 , share price drop 2.75.