Jan 15 Fenner Plc on Wednesday warned a
stronger pound could hurt earnings, and said revenue in its
polymer business was expected to be lower as some orders get
Fenner's shares fell as much as 10 percent in early trading,
making the stock the top percentage loser on the FTSE 250
Fenner, which generates about 65 percent of its group sales
in U.S. and Australian dollars, said if results for the year
ended August were adjusted for the pound as at Dec. 31,
underlying operating profit would have been lower about 9
The pound has gained 6.5 percent against the dollar
in the last six months.
The company said visibility in its other business, which
makes industrial conveyor belts and accounts for 70 percent of
total revenue, was more limited than usual due to lower demand
in winter from coal miners.
"U.S. coal volumes are edging upwards but prices remain low
and the asset trades between customers have disrupted Fenner's
order intake a little, affecting its firm backlog in (Engineered
Conveyor Solutions business)," Investec analyst said in a note
Liberum cut its rating on the stock to "hold" from "buy",
citing limited visibility in its conveyor business, order delays
in the polymer business and a higher-than-anticipated 10 percent
impact from a stronger pound.
The Hessle-based company's stock was down 4.2 percent at
435.8 pence at 1019 GMT.