Interim Management Statement

RNS Number : 3471Z
Fenner PLC
18 July 2008

18 July 2008
FENNER PLC

INTERIM MANAGEMENT STATEMENT

In the period since our Interim Management Report of 30 April 2008, we are pleased to confirm that the Group has traded in accordance
with our expectations.

Our heavyweight conveyor belting businesses have experienced high levels of demand with continued strong margin performances in Asia Pacific
where the service operations are at capacity. In Europe, we have used our brand quality and service offering to develop new markets which
has resulted in improved margin performance. The Americas business has seen good revenue growth, but has also experienced rapidly rising raw
material costs. Whilst these are being passed on to our customers there is an inevitable lag constraining margin growth in the very short
term. Whilst medium and longer term prospects remain unchanged the short term opportunities to outperform are more restricted.

In Advanced Engineered Products our exposure to niche markets has enabled us to maintain our expected level of volume and profitability.
This is against a backdrop of underlying markets some of which have been somewhat weaker. In accordance with our plans, the new
acquisitions have helped propel us into growth markets.

We are pleased to report that the operations acquired in the current financial year in the technical weaving, digital printing, bushing,
and conveyor service sectors of our businesses have performed ahead of our expectations and are now embedded in their respective divisions.
Excellent progress has been achieved in our major capital investment projects, with commissioning of the US wide belt expansion anticipated
to be on schedule in the coming months.

Our announcement on the 26 June 2008 of the agreement to acquire the US and Chilean based CSC Group interests for an initial
consideration of US$46m subject to usual completion conditions, represents a major strategic advance in our value added mining customer
support programme. The combination of service capability and our investment programme for the production of wide fabric and steel cord
products will provide valuable exposure to the increasing demand for heavyweight products in the Americas.

On 11 July 2008, we announced the disposal of our non-core US based PVC lightweight belting interests. The book value of the assets
disposed of amounted to US$7.8m.

Our balance sheet remains strong with net borrowings, as anticipated, comfortably within the scope of existing banking facilities.

We are mindful of the uncertain economic conditions in some of our industrial markets. However, the energy and commodity markets we
serve remain positive, and this, together with our value added strategy, has enabled us to maintain margins, despite rising raw material
costs. This, underpinned by the resilience of our order books, gives us confidence in our expectations for the current financial year.

Disclaimer
Certain statements in this report are forward-looking. These forward-looking statements reflect our current expectations concerning
future events and actual results may differ materially from current expectations or historical results. Such forward looking statements are
subject to risks and uncertainties, including specific economic or business, conditions particularly in the US and energy markets, and
significant increases or volatility in the price and availability of raw materials.

-ends-

For further information please contact:

Fenner PLC
Mark Abrahams, Chief Executive 01482 626501
Richard Perry, Finance Director

Weber Shandwick Financial
Nick Oborne/ Hannah Marwood 020 7067 0700

This information is provided by RNS
The company news service from the London Stock Exchange

END

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