Companies: FENR   

Fenner, the conveyor belt manufacturer, cheered investors by raising its first-half dividend after seeing signs of recovery in its key US market. Chief executive Mark Abrahams also flagged up a strong performance in South Africa and Australasia. Fenner says its Chinese operation has meanwhile moved into profit for the first time. For the six months to February, pre-tax profits fell from £6.6m to £1.4m, reflecting a higher interest charge on the November acquisition of Unipoly Enerka. Turnover was lifted from £78.4m to £98.8m, with £24.6m of sales coming from the crucial £47.5m deal that made Fenner the 'world leader in heavyweight conveyor belting'. Further efficiencies stemming from the acquisition should show through over the next two years. The interim dividend was raised from 1.925p to 1.975p per share. Analyst Paul Compton, of house broker Collins Stewart, has pencilled in pre-tax profits of £12.8m for the year to August, giving 8.4p of earnings, with £22m and 14.8p to follow in 2003. On a forward p/e of 15.9, the shares are trading roughly in line with the sector average. This falls to a rating of nine for next year. Good long-term value.

Fenner	LSE	£152.49m	87.25p	-4.75p
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