Fenner raises guidance "above market expectations"

AIM-listed Fenner Plc has released a pre-close trading update ahead of its FY results in November showing solid performance in the last two months of its financial year and reporting that it now expects its FY results to be at the top end of expectations.

The Brexit-induced sterling collapse during the period meant the industrial polymer specialist saw significant beneficial translation effects on overseas earnings, but also suffered adverse translation effects on its borrowing in USD. Despite this, the group's debt fell to $150m due to a good working capital performance.

The board said it expects to report results for the full year "...towards the top of the current range of market expectations" and in line with the guidance.

Stockbroker N+1 Singer welcomed the result, saying that its primary concern about the stock had been its debt, which was lower than expected:

"The lower debt level than expected is positive; debt has been our main recent concern, so again, this is an encouraging statement." 

The market reacted positively to the update sending the stock up 5% in early trading. The share price is trading up 15% since Tuesday and up 90% since February.