Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The purchase takes his stake in the company to 438,142 shares.
Martin Flower, the Chairman of industrial fabric maker Low & Bonar, announced Wednesday that he had bought 50,000 shares in the company, just one day after the group announced plans to increase its dividend payment by 14.3 per cent. Flower, who has held his role at the company since January 2007, acquired the shares at 63.36p each, costing a total of �31,680. In its final results for the year ended November 30th, the maker and supplier of technical textiles said profit before tax, amortisation and non-recurring items from continuing operations increased by 4.7% to �24.5m and rose 10.7% on a constant currency underlying basis. Revenue on a constant currency basis rose 2.6% to �380.5m. Operating profits were 5.2% higher on an underlying basis. Operating margins edged up to 8.0% from 7.9% in 2011 while earnings per share rose by 5.0%. Speaking on Tuesday Flower said: "These are good results during a period of continued macroeconomic challenge, particularly within Europe, providing further evidence of the quality and resilience of our business and its growth prospects. "To enhance these growth prospects, the group has made significant investments in reorganising its activities, building capability and extending capacity in attractive segments and geographies."
This has turned blue in my portfolio. Another profitable yr with an increase in divi payments should see this gradually move higher in the future. Now with news of a director purchase this could and should soar...
Further action has been taken to reduce costs and the group has decided to provide £11.2m for the impairment of assets after assessing the potential range of future cash flows within the Yarns business. Chairman Martin Flower said: "These are good results during a period of continued macroeconomic challenge, particularly within Europe, providing further evidence of the quality and resilience of our business and its growth prospects." "To enhance these growth prospects, the group has made significant investments in reorganising its activities, building capability and extending capacity in attractive segments and geographies." "These investments will begin to pay back in the coming year and further underpin the board's confidence in a continuation of cash generative, profitable growth. The year has started in line with our expectations."
Industrial fabric maker Low & Bonar reported profit growth in the last year, despite continued macroeconomic challenge, and said its new financial year had started in line with expectations. The maker and supplier of technical textiles said profit before tax, amortisation and non-recurring items from continuing operations increased by 4.7% to £24.5m and rose 10.7% on a constant currency underlying basis. Revenue on a constant currency basis rose 2.6% to £380.5m. Operating profits were 5.2% higher on an underlying basis. Operating margins edged up to 8% from 7.9% in 2011 while earnings per share rose by 5%. Underlying its confidence in future trading, Low & Bonar has increased its dividend payment to 2.4p, 14.3% from a year earlier. Low & Bonar said lower sales in the depressed artificial grass yarns market led to losses within its Yarns business, despite recent cost reduction actions.
Textiles manufacturer Low & Bonar Plc. soared over 5% after posting yet another year of profit growth.
big trade....
big trades coming in...
big trade,,,
biggy......
knows something ?
big trade..................................
Something happening ??? Big trades here today
at 50p under real pressure now
With decent slug of LT Debt, could even test 40p - given comparable EV/EBITs around market at the moment. (Just opinion of interested student/observer, needless to say; nothing I post is investment advice, of course)
Thanks for the comment. i did notice the long term debt, but I took the view that if they continue to grow then this will be less of an issue. Always good to have a second oppinion as investing can be a lonely pursuit at times.. I normally concentrate on technology stock so this is a bit of a diversion for me. But I am in profit after dealing costs on day1, so a good start.
Welcome to LWB land (dyslexic cricket?). DYOR but I am wary of the multiples here (EV/EBIT in particular); the p/e is not really comparable with peer companies like TRI because LWB has substantial LT debt.. btw I stil hold some of my LWB, but sold most at 60pish
This share is part of a trust I am invested in, which has returned me nearly 19% since July. It is their largest holding, so I thought I would check it out. The fundimentals are good with turnover and profits increasing and the balance sheets looks ok. I bought in today as it looks like a good medium long term bet especially with their expansion in europe and US.
Chief Executive Steve Good commented: "Our key businesses are performing well and we expect to make further progress this year, despite tough European markets and the adverse effects of a weaker Euro. We have continued investing in capacity and capabilities to extend our global reach and support future growth." Year-end net debt is expected to be at a similar level to last year, in line with guidance.
Industrial fabric maker Low & Bonar said it continues to expect full year profits to be ahead of last year, however, owing to the losses in at its synthetic turf business Yarns, profits are expected to be slightly below current market expectations. The group said there was persistent weakness at its Yarns business following a reduction in discretionary public funding for artificial sports pitches. As a result, sales, which account for 6% of the group, have again been materially lower than the previous year. Low & Bonar said despite the restructuring of Yarns, the recent deterioration in market conditions would result in the business making a loss this year. The group said it is currently evaluating options to address this situation. The materials firm also cautioned, that following a strong first half, growth in civil engineering and building products markets has slowed as European construction customers became more cautious. Otherwise the group said trading since May at its key businesses has continued as expected, with sales, profits and margins comfortably ahead of last year on a constant currency basis. Sales growth within flooring, industrial and transport segments has been satisfactory and consistent with the first half of the year, it added.
DYOR etc but I suggest better to focus on EV comparables not p/e or dividend yield, and (on EV/EBIT) LWB is perhaps a touch pricey given EU exposure: forecast say 7-8x, relative to say Trifast (6-7x perhaps), let alone DWHT (perhaps as low as 5x)
Hefty buys by Cazenove this week : 19-Sep-12 16:10:57 60.00 2,931,179 Buy* £1.759M http://www.investegate.co.uk/Article.aspx?id=201209201650277941M 20-Sep-12 13:58:45 60.00 5,700,000 Buy* £3.420M http://www.investegate.co.uk/Article.aspx?id=201209211208118633M This is a strong recovery play with decent dividend income, which makes for a good addition to a balanced ISA in my opinion.
Low & Bonar Sell 07-Sep-12 £124,314.30 Steve Good 226,026 @ 55.00p
That seemed to tie in with Peel Hunt's projections. The broker is leaving its profit before tax forecast for the current financial year unchanged at £25.2m, though next year's forecast has been trimmed from £28.5m to £27.0m.
The group conceded that market conditions had become more difficult, especially in Europe but also in Asia. On the plus side, North American activity benefited from the first signs of a pick-up in the housing market. Sales in Flooring, Building Products and Civil Engineering - the group's target growth markets - were vibrant but growth was more subdued in the Industrial and Transport markets while, as anticipated, sales in the Leisure segment remained very weak as the artificial grass market continued to contract. Operating margins improved from 6.5% to 6.9% in the half year despite, as broker Peel Hunt noted, the group making a significant investment in future growth. "Lower raw material prices should benefit H2 [second half of the fiscal year] but the weakening euro is a major headwind," Peel Hunt suggested. Net debt at the end of May had increased to £98.7m from £85.3m six months earlier, reflecting the group's acquisition of Xero Flor and its investment in its Saudi Arabian joint venture, as well as increased capital expenditure to support future growth. "These results demonstrate the quality of our business," claimed company Chairman, Martin Flower. "We expect macroeconomic conditions to remain challenging, particularly in Europe. However, with the benefit of ongoing internal growth initiatives and lower raw material polymer prices, we remain confident that full year results will be in line with expectations," Flower added.