(Reuters) - Fenner Plc FENR.L posted a 59 percent jump in underlying operating profit on Wednesday, as improved order intake and robust growth across its businesses aided the engineering firm in beating estimates.
Fenner’s advanced engineered products (AEP) unit, that generated 45 percent of the group’s annual revenue, recorded an 11 percent rise in revenue, helped by growth at its U.S. oil & gas and medical businesses.
The company, which makes polymer products and conveyor belts for industrial customers including miners, said operating profit rose to 59.1 million pounds for the year ended Aug. 31 from 37.1 million pounds a year earlier.
Revenue rose 14 percent to 655.4 million pounds.
Analysts were expecting full-year revenue of 639.84 million pounds, and an operating profit of 47.1 million pounds, according to Thomson Reuters I/B/E/S.
Engineering companies had been hard hit as customers in the oil, gas and mining businesses cut orders, and waited longer than usual to replace parts in the face of a widespread slump in commodity prices.
Like its peers, Fenner has also been forced to cut jobs and save costs to combat the fall in orders.
Fenner said the outlook for the firm is “strengthening”, entering into 2018.
“Overall, given the structural growth opportunities that the group has created, the board anticipates that the outcome will be above its previous expectations,” Chief Executive Mark Abrahams said.
Reporting by Justin George Varghese in Bengaluru; Editing by Amrutha Gayathri and Sunil Nair