Fenner (AIM:FENR) – reassuring update suggests the dividend is safe
The beleaguered world leader in reinforced polymer technology, has reassured that all is not as gloomy as some predicted with its pre-close trading statement
They anticipate that Group revenue and underlying profit for the year ended 31 August 2015 will be in line with expectations at the time of the trading update on 22 July 2015. ‘Consensus’ expectations for August 2015 are currently for pre-tax profit of £41.5m, eps of 15.23p and a dividend of 12p, implying a 7% yield at the current share price and 11x current year multiple. Estimates for 2016 currently predict a fall in pre-tax profit to £34m, although it’s hard to see how much reliability can be placed on these given the fluidity of the markets in which they…