Fenner reports eight percent rise in profits

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HESSLE-based engineering firm Fenner Plc said it is
strongly placed to outperform the market after announcing an eight rise in
pre-tax profits.

The firm, which makes

conveyor belting for the mining industry, reported pre-tax profits of
£36.3m in the 12 months up to August 2008, up from £33.6m last year.

Group revenue grew by 15 per cent, from £380.8m last year to £437.8m this
year, driven by robust performance in its conveyor belt and advanced
engineered products divisions.

Despite experiencing a "limited impact" from the global financial crisis,
the group said it remained alert to the wider economic conditions.

"These are more likely to be seen in industrial markets," said group
chairman Colin Crook.

"The niche nature of our businesses and the diversity of our markets
provide additional strength and resilience."

The company has seen unprecedented growth over the past financial year,
both organically and through the acquisition of seven companies, predominantly
in North America.

But group chief executive officer Mark Abrahams said the group's programmed
of acquisitions is unlikely to continue at the same rate into the new
financial year.

He said: "Most of the acquisitions we looked to make have been made.

"In the US there was a window of opportunity because of fears over capital
gains tax which created a catalyst for us to make those acquisitions.

"Now the world has changed completely."

He added, however, it was too early to predict how recent changes in the
US's political landscape could affect trading in the country.

Last month, Fenner was the subject of a malicious attempt to undermine its
share price after it was revealed someone purporting to represent the company
contacted small shareholders and spread rumors it was to release a negative
trading statement.

The situation is under investigation by the FSA, but Mr. Abrahams confirmed
he had not yet had any feedback on the situation.

Fenner's share price dropped six per cent after the markets opened
yesterday from 100p to 94p, but Mr. Abrahams put the fall down to the economic
climate rather than any reflection of the company