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

Peel Hunt today reaffirms its buy investment rating on Fenner PLC (LON:FENR) and raised its price target to 360p (from 330p).

StockMarketWire.com
Fenner's underlying pre-tax profits more than doubled to £16,5m in the six months to the end of February - up from £8.1m last time.

Revenues rose to £307.4m from £276.8m and the group made a pre-tax profit of £13.8m against a loss of £23.1m a year ago.

The group said revenue was assisted by market share gains and exchange rates and underlying operating profits rose by 60% £24.0m - 27% up at constant currencies.

Chief executive Mark Abrahams said: "It is pleasing that the restructuring of the group has created a platform from which we are now growing and making steady market share gains. We look forward to maintaining this momentum."

Citigroup today reaffirms its buy investment rating on Fenner PLC (LON:FENR) and raised its price target to 380p (from 348p).

JP Morgan Cazenove today reaffirms its neutral investment rating on Fenner PLC (LON:FENR) and raised its price target to 275p (from 255p).

Peel Hunt today (24/04/17) reaffirms its buy investment rating on Fenner PLC (LON:FENR) and raised its price target to 380p (from 360p).

finnCap today (25/04/17) reaffirms its buy investment rating on Fenner PLC (LON:FENR) and raised its price target to 385p (from 335p).

StockMarketWire.com
Fenner expects full-year operating profits to be comfortably ahead of previous forecasts.

Fenner said it continued to make strong progress since 1 March, principally in new product development, augmented by a further increase in the US rig count.

It said that AEP's performance continued to strengthen across each product area.

An update said: "In particular, our Medical businesses are experiencing strong revenue growth from the development of new customer projects.

"This provides an encouraging platform for long term growth in line with our plans. In Oil & Gas, the growing order book is now translating into increased sales.

"Our Industrial businesses are performing ahead of last year, reflecting new product launches.

"ECS continues to deliver the planned improvements."

Looking ahead, it said: "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."

StockMarketWire.com
Fenner - through its subsidiary Fenner Conveyor Belting (South Africa) (Pty) - has signed a long term agreement with Bearing Man Group (Pty) Ltd for BMG to distribute Fenner Conveyor Belting products in specified territories in sub-Saharan Africa.

Fenner said that as part of this arrangement, BMG was acquiring the ECS service operations and related assets in South Africa.

Fenner said its South African conveyor belt plant would supply BMG with conveyor belting for South Africa and the other specified territories.

Fenner chief executive Mark Abrahams said: "This is an exciting opportunity for both Fenner and BMG and further strengthens the long term relationship that exists between the companies.

"This transaction will enable both companies to harness their respective strengths and develop the sales opportunities in South Africa and the wider Sub-Saharan territories for conveyor belting using the well-respected, and well established branch and distributor network operated by BMG, one of the strongest operators in Africa."

Peel Hunt today reaffirms its buy investment rating on Fenner PLC (LON:FENR) and raised its price target to 425p (from 380p)

StockMarketWire.com
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.'

Citigroup today reaffirms its buy investment rating on Fenner PLC (LON:FENR) and raised its price target to 425p (from 400p).

StockMarketWire.com
Fenner expects operating income for the current financial year to be about its previous forecasts, according to update issued ahead of today's annual general meeting.

The group said it had a robust start to its financial year as it continued to transition from recovery to sustainable growth.

It said all businesses were performing well, with generally increasing order intakes and further benefits from on-going efficiency enhancements.

It said: 'The board envisages that, due to the recent increases in order intake in ECS, the consistent strength of AEP and the general strengthening of trading across the group, Fenner will achieve an operating outcome for the current financial year which is above its previous expectations.

'Looking beyond the current year, the group's strengthening market positions, an increasing expectation of the returns from its on-going investment in product development, the reduced US tax rate and the depth of expertise across the group's management team make the board increasingly confident about the future progress of the group.'

Anyone still holding this?

Bid today.

I bought at 196 and sold at 285. I thought I did well at the time!

Sadly not CC. Have dipped in & out over the years, but missed the surge this time.
No info on the bidder yet.

Correction.....looks like Michelin.

UBS comment:
"In multiples it equates to 13x 2018E EBITDA, 18x EBITA (August year end). This falls to 12x and 15x respectively on our 2019E forecasts. This looks high versus the 7-8x EBITDA paid by Continental for Veyence a few years ago, but reflects in our opinion the higher growth profile of the AEP business at Fenner. The valuation being paid is in line with multiples paid for other UK engineers that have been acquired in recent years. In the context of Fenner having traded at an average 20-25% sector discount over the last decade this could seem a generous multiple. However, we would note that our 2018E EBITA is still only c70% of the 2012 peak profits and even if the past ECS peak may not be repeatable we do see further strong improvement forecast to 2020E.

We do not foresee any competition or regulator related barriers. The other question is whether there could be a counterbid at all?
While there are companies that could have a strategic fit with Fenner's divisions individually it is not obvious to us that there is a third party that would have the same strategic logic to bid for the whole group."