Strategic Direction

There are six key elements of our approach to generating value for shareholders

Our approach

The Board believes that each business within the Group has the potential to outperform its competitors and to deliver growth.

The Group’s resources will continue to be targeted towards those Fenner businesses which have the greatest potential for growth and for the creation of shareholder value, in particular the Group’s medical and oil & gas businesses.

This expenditure will take the form of capital expenditure, acquisitions and investment in product development and knowledge.

Investment in the remainder of the Group’s activities will be made where there are specific low risk opportunities and consistent with achieving targeted levels of growth.

1. We target growth markets and market segments

We target those markets and those market segments which we believe will show superior and sustained growth.

We continue to focus the Group’s investment on the medical and oil & gas industries and key sub-segments within these industries (such as regenerative medicine and unconventional means of oil & gas extraction).

In our more mature businesses, we will target regions and business areas where we believe growth will be well above industry averages; accordingly, Precision Polymers will extend its product range and make bolt-on acquisitions and ECS is investing in its market leading positions in Australia.

2. We seek to increase our market shares

Increasing our market shares signifies that we are providing customers with the goods and services that they need and that we are outperforming our competitors.

We have a strong record of increasing our shares of target markets.

We will develop and invest in our well-regarded, market leading brands.

We emphasise providing excellence in customer service and support.

Our approach also emphasises continuing investment in product development and expanding our product range. We continued to invest even when market conditions deteriorated significantly.

3. We invest in knowledge

Investment in knowledge enables us to develop new products and to enhance the capabilities of existing products, thereby giving us important advantages over our competitors.

It also allows us to carry out existing activities more efficiently.

Across the Group, we have accumulated large amounts of specialist knowledge and know-how that helps us to differentiate our businesses.

The Group is continuing to invest in materials technology, with particular emphasis on the development and application of new polymeric materials for medical applications and for our oil & gas businesses.

Our depth of know-how was important in enabling us to significantly reduce costs in ECS when the mining segment faced a severe downturn; this cost cutting was achieved without compromising product quality, customer service or the longer-term potential of the business.

4. We aim to maximise our operational efficiency

Maximising operational efficiency enables us to increase returns to shareholders whilst also improving our proposition to customers.

Businesses within the Group are expected to increase operational efficiency each year. Where meaningful data are available, we benchmark our businesses’ performance against those of our competitors whom we seek to outperform.

Operational efficiency is assisted by the Group’s network of well invested and strategically located facilities.

Our safety and environmental records continue to improve and are well ahead of many in our peer group; this indicates that we are doing things correctly and are becoming more efficient in our operations.

5. We are disciplined in our use of capital

We recognise that efficient use of capital will increase the returns that we generate for our shareholders.

The Group will continue to pursue acquisitions which will be focused on AEP, providing a combination of range extension, geographical coverage and technical know-how.

Expenditure will continue to be tested against strategic and financial benchmarks.

Businesses are evaluated to ensure that they can generate returns in excess of our cost of capital, otherwise they become candidates for disposal. Businesses can also be candidates for disposal where they would create more value for a different owner.

6. We monitor and respond to environmental issues

Governments, employees and other stakeholders will expect higher standards of environmental awareness and corporate responsibility.

We recognise that new policies adopted by governments around the world which are intended to protect the environment will impact on certain markets we serve, in particular coal mining.

The future development of these markets will also reflect other dynamics, such as increasing demand for energy and the prices of alternate energy sources; we will manage our businesses accordingly.

The Group’s record in corporate responsibility is strong and we will continue to seek further improvements.

Teaser image

Fenner Overview 2017

An overview of the Fenner Group - 12 December 2017


Teaser image

Annual Report 2017

The Group’s results for 2017 show significant improvements over the previous year on all measures