LONDON (Alliance News) - Performance materials company Low & Bonar PLC on Tuesday said its pretax profit fell due to exceptional charges booked in the financial year to the end of November, while revenue took a hit from a weak euro, though Low & Bonar said its underlying performance was good against tough market conditions.
The maker of yarns, fibres, industrial and coated fabrics and composite materials said its pretax profit for the year to November 30 fell to GBP12.4 million from GBP16.7 million a year before, mainly due to the group booking an GBP8.2 million impairment charge on its joint venture in Saudi Arabia.
Revenue fell to GBP395.8 million from GBP410.6 million, though it rose in constant currencies as the weak euro dragged on its reported results. Low & Bonar said it made progress across its divisions in the year and conditions stabilised in its civil engineering business. Operating margins also improved in the year, to 8.3% from 7.7%, benefiting from lower raw material costs in the first half, a beneficial change in the sales mix, and strong demand in key segments.
Low & Bonar will pay a final dividend of 1.8 pence per share, pushing its total dividend for the year up to 2.78p from 2.70p.
"Whilst it is expected that market conditions in some of the group's end markets will remain difficult, the board is confident that, with continued focus on efficiency gains and improved commercial execution, further progress will be made in the current year," said Martin Flower, Low & Bonar's chairman.
Shares in Low & Bonar were up 3.1% to 61.85p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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