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Fenner says key unit to gain as US, Australia mining improves

Nov 13 (Reuters) - British polymer maker Fenner Plc (LSE: FENR.L - news) reported a 23 percent fall in full-year pretax profit, but said it was seeing an improvement in sentiment among mining customers in Australia and the United States.

The industrial conveyor belt maker said it expected its key Engineered Conveyor Solutions (ECS (KOSDAQ: 067010.KQ - news) ) unit to benefit from the mining industry's cautious return to more normal maintenance and replacement practices.

Shares in the company were up 7.4 percent at 437.3 pence at 0823 GMT, making the stock the top gainer on the London Stock Exchange.

"By year end, ECS' trading conditions in the United States had shown some signs of recovery... In Australia, conditions are stabilising as FX is helping demand and offsetting the translational impact, and customers are now looking to maximise efficiency," Liberum Capital analyst Ben Bourne said in a note.

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Bourne raised his price target on the stock to 515 pence from 410 pence.

Fenner said revenue fell 7 percent to 549.8 million pounds ($875.7 million) in the year ended Aug. 31. Pretax profit fell to 67.9 million pounds from 88.6 million pounds a year earlier.

The company said weak trade and soft manufacturing activity in China during 2013 created an uncertainty over commodity demand. However, acquisitions by the company mitigated the effect of slower business.

The company said demand in its ECS unit, which generates 70 percent of total revenue, was hit as there was a slowdown in mining activity in its largest markets such as the United States and Australia.

Fenner raised its final dividend to 7.5 pence per share from 7 pence a year earlier.