Dull business but cracking chart, great dividend and ad hoc takeover rumours. I'm happy to settle for that kind of dull!

Final Results

Highlights

· Record financial performance

- Revenue up 16% to £830.6m
- Underlying operating profit1 up 30% to £118.8m; operating profit up 30% to £107.6m
- Underlying profit before taxation2 up 30% to £103.9m; profit before taxation up 27% to £88.6m
- Underlying earnings per share2 up 28% to 36.1p; basic earnings per share up 23% to 30.3p
- Strong free cash flow of £63.0m (2011: £53.7m)
- ROCE increased to 24% (2011: 20%)

· Dividend per share increased by 31% to 10.5p per share, in recognition of increased quality of earnings and confidence in the future

· Engineered Conveyor Solutions ("ECS") underlying operating profit1 increased by 38% to £84.4m on revenues up 16% to £593.4m

Positive trading conditions for most of the year driven by record levels of coal and iron ore extraction; some slowing of order intake from the US coal sector towards the end of the year but coal stockpiles have been reducing for several months

· Advanced Engineered Products ("AEP") underlying operating profit1 and revenues both increased by 14% to £43.6m and £237.2m respectively

Growth underpinned by strong demand from the oil and gas sector and investment to broaden geographic coverage; some small pockets of destocking

· Strategic initiatives to create a strong, growing and resilient Group progressed well, supported by organic and acquisitive investment

· Confident in further opportunities for long-term value creation

FENR Fenner, far better results than I was expecting. Gone in and bought some this morning, expecting broker upgrades.

You in long here Skinny?.

As of this morning @350.88 having missed 348 by a requote.

The -------ers.

News is a bit slow coming through from brokers but sniffed this out..........

CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: INDUSTRIAL ENGINEERING
Fenner lifts dividend by nearly a third
Wed 07 Nov 2012

FENR - Fenner
- Industrial conveyor belt maker Fenner reported a stellar increase in profit and revenue for the year and lifted its dividend payment by 31 per cent.

Profit before taxation rose 27% in the 12 months ended August 31th to £88.6m while underlying pre-tax jumped 30% to £103.9m. Revenue for the year was up 16% to £830.6m. Underlying earnings per share rose 28% to 36.1p.

Fenner said the positive trading conditions for most of the year driven by record levels of coal and iron ore extraction. Some slowing of order intake from the US coal sector was seen towards the end of the year but coal stockpiles have been reducing for several months, it said.

Chairman of the reinforced polymer technology firm Mark Abrahams commented: "We remain mindful of the current global economic uncertainty. Given both anticipated end market trends and the very strong first half last year, we expect our performance to be more heavily weighted to the second half of the current year."

He added: "As a result of our investment programme over recent years, Fenner is a much stronger and more resilient business serving a more diverse customer base. The fundamentals of our core markets underpin healthy, long-term growth, and we continue to be encouraged by the number of identified opportunities for sustained value creation."

Underlining its confidence in future earnings, Fenner is recommending a dividend of 10.5p per share, up 31% from last time.

Comment from Investors Chronicle:

Conveyor belt specialist Fenner ( FENR ) has announced a record financial performance in the year to August with revenues up 15 per cent to £830.6m and pre-tax profit up 27 per cent to £88.6m. The dividend is hiked by 30 per cent too. Buy.

FENR FENNER


07 Nov Fenner PLC FENR Numis Buy 364.60 350.00 435.00 435.00 Reiterates

435p SP Target

.... very nice.

FENR FENNER

07 Nov Fenner PLC FENR Panmure Gordon Buy 363.85 350.00 465.00 465.00 Reiterates

465p SP Target.

FT today

November 7, 2012 9:24 am
Fenner gives engineering sector rare boost
By Mark Wembridge
Fenner provided a rare piece of positive news among the UK’s engineering companies, after the maker of industrial conveyor belts reported a jump in full-year pre-tax profit.
The Yorkshire-based engineer, which specialises in the supply of belting for mining and heavy industries, on Wednesday reported pre-tax profit up 27 per cent to £88.6m in the year to August 31, buoyed by strong demand levels from the energy and mining sectors.
More

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The news prompted Fenner to boost its full-year dividend by almost one-third to 10.5p, which the group said was “in recognition of increased quality of earnings and confidence in the future”.
The solid figures are in contrast to a recent series of profit warnings from industrially-focused UK companies, with Severfield-Rowen, GKN, Morgan Crucible, Volex and Cookson all downgrading full-year earnings expectations.
Fenner’s revenues rose 16 per cent year-on-year to £830.6m, driven by buoyant demand for coal and iron ore extraction at the start of the financial year. However, that trend slowed in the second half, especially in the US market.
“As a result of our investment programme over recent years, Fenner is a much stronger and more resilient business serving a more diverse customer base. The fundamentals of our core markets underpin healthy, long-term growth,” said Mark Abrahams, chairman.
The group’s engineered conveyor solutions division overcame weakness in the construction sector to report a 16 per cent increase in revenues to £593m, boosted by a solid performance in Europe.
However, the division was hurt by the slowdown in US demand for coal, which it blamed on “the extremely mild winter and uneconomical pricing of natural gas”.
Fenner’s advanced engineered products unit revenues rose 14 per cent to £237.2m, underpinned by strong demand from the oil and gas sector, although the division is facing concerns of destocking among some customers.
“Fenner’s quality of earnings has improved greatly in recent years and this means that the group is more resilient. There are some areas of softness and the current year will undoubtedly be volatile (a cold US winter will help) but the long-term attraction of Fenner remains,” said Jon Lienard, analyst at N+1 Singer.
Diluted earnings per share rose from 24.4p to 30.2p, and Fenner shares increased 2.5 per cent to 358.9p in early trading.

Fenner: Jefferies keeps buy rating and 490p target.

Ex-divi 30th Jan '13 (7p)

FENR FENNER

After yesterdays results a table
showing the Broker expectations
which looks very bullish.......

Date Company Name Broker Rec. Price Old target price New target price Notes

07 Nov Fenner PLC Investec Hold 360.00 380.00 375.00 Reiterates
07 Nov Fenner PLC N+1 Singer Buy 360.00 450.00 408.00 Retains
07 Nov Fenner PLC Canaccord Genuity Buy 360.00 549.00 471.00 Reiterates
07 Nov Fenner PLC Numis Buy 360.00 435.00 435.00 Reiterates
07 Nov Fenner PLC Panmure Gordon Buy 360.00 465.00 460.00 Reiterates

NORWICH & PETERBOROUGH BUILDING SOCIETY

FENR FENNER

08 Nov Fenner PLC FENR Panmure Gordon Buy 361.55 359.50 460.00 460.00 Reiterates

Target SP 460p

Date: Thursday 08 Nov 2012

LONDON (ShareCast) - Tempus in The Times writes that Fenner, with more than two thirds of revenues across the group coming from repeat orders for equipment that has come to the end of its natural life, should not be as exposed to a slowdown in new investment as some of its peers.

Fenner shares rose by 9.5p to 359.5p on the release of a positive set of results to the end of September. Pre-tax profits came in 30% higher at £103.9m, while a final dividend of 7p increases the total by a generous 31% to 10.5p. Fenner is never going to be immune to global economic trend but the shares, on about 10 times earnings, look like good long-term value, the paper says.

Interactive Investor's take

Good article here on FENR...

http://www.iii.co.uk/articles/60403/edmond-jacksons-stockwatch-fenner

oops just noticed Skinny same article sorry.

Keep up!

From David Scwarrtz in today's FT re; Fenner. SAT 17/11/2012

Turning to my own trading efforts, I recently purchased shares in Fenner (FENR), the world leader in industrial conveyor belt technology. To my eye, it is a safe share to own in these uncertain times.
The company has just reported smashing results for the financial year. Profits rose by 23 per cent and the dividend was increased.
In spite of its strong performance, Fenner shares have drifted sideways in the last six months. The company’s major problem is its link with the troubled mining sector. What many investors fail to realise is that 87 per cent of Fenner’s conveyor division revenues come from the so-called “after-market”. This is important because mining companies tend to keep production from existing mines barrelling ahead even if investments in new mines are being cut back. Continued expenditure for equipment servicing and replacement is a fact of life in established mines and this plays to Fenner’s strength.
The price graph reveals that its shares sit near to a recent low. Proximity to the lower end of the long-term trading range also suggests that these shares are well-supported. I believe they are ripe to bounce when the broad market begins to rally.

Stock market historian David Schwartz is an active short-term trader writing about his own trades