The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksLWB.L Share News (LWB)

  • There is currently no data for LWB

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Low & Bonar Posts Profit Rise As Focus Turns To Problem Joint Venture

Wed, 06th Jul 2016 07:17

LONDON (Alliance News) - Performance materials maker Low & Bonar PLC on Wednesday posted increases in revenue and profit in its first half, and said it remained confident of meeting its full year expectations, as its focus turns to resolving operational issues and finding a solution for its joint venture.

The company, which makes yarns, fibres, industrial and coated fabrics and composite materials, reported pretax profit of GBP8.3 million for the six months to May 31, up 6.4% from the GBP7.8 million posted for the same period a year earlier, driven by a 6.3% rise in revenue to GBP180.6 million from GBP169.9 million.

Low & Bonar said its Building & Industrial division performed "very strongly" and delivered 67% profit growth on a constant currency basis to GBP4.5 million from GBP2.7 million. This was largely thanks to a strong performance in the US, particularly of building products, which reflected a new customer win as well as good demand.

Meanwhile, the Civil Engineering division made a "good start" to the year, with profit up at GBP1.0 million from GBP300,000, whilst the Interior & Transportation division posted "very good profit growth" of 30% to GBP7.3 million from GBP5.6 million.

However, the Coated Technical Textiles division saw a mixed performance, with sales flat on a constant currency basis, and market conditions for its Bonar Natpet joint venture, in the Gulf Cooperation Council region remain "difficult" with activity levels "still very low".

Low & Bonar said it is continuing to work with its partner regarding the Bonar Natpet company to find a solution and avoid a further drag on group profitability, after the business made a loss of GBP1.2 million in the first half.

Low & Bonar said it will also look to resolve operational issues, such as manufacturing problems seen within the Coated Technical Textiles, during the second half. Taking into account the performance in the first half, Low & Bonar said it remains confident of meetings its expectations for the full year.

The company raised its interim dividend to 1.00 pence per share, from 0.98p per share, saying this reflected confidence in its long-term prospects.

"The group has continued to execute its strategy, with the start of production in China, the exit from grass yarns and the work to find a solution for Bonar Natpet. At the same time we are starting to realise the benefits of the reorganised business structure and leadership," said Chairman Martin Flower.

Shares in Low & Bonar were up 0.4% at 64.00p on Wednesday.

By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland

Copyright 2016 Alliance News Limited. All Rights Reserved.

More News
10 Oct 2019 10:36

Low & Bonar Lenders Waive Covenants As Long As Takeover By FV Proceeds

Low & Bonar Lenders Waive Covenants As Long As Takeover By FV Proceeds

Read more
10 Oct 2019 08:08

UPDATE 1-Low & Bonar cites risk of failing financial agreements if tested

(Adds details on risks, background)Oct 10 (Reuters) - UK-based polymer products maker Low & Bonar on Thursday warned of tough trading conditions in the third quarter and said that it would not be able to comply with its financial agreements if th...

Read more
23 Sep 2019 08:15

Low & Bonar agrees ?107m takeover with Germany's Freudenberg

(Sharecast News) - Low & Bonar shares rocketed on Monday after it agreed to be taken over by German technology group Freudenberg for £107m in cash.

Read more
20 Sep 2019 18:05

Low & Bonar Accepts GBP107 Million Freudenberg Takeover Offer

(Alliance News) - Performance materials firm Low & Bonar PLC said Friday it has agreed to a GBP107.0 million takeover offer by FV Beteiligungs GmbH, a subsidiary of German diversified group of

Read more
30 Jul 2019 10:17

Low & Bonar Shares Plummet As It Axes Interim Payout Amid Weak Results

(Alliance News) - Low & Bonar PLC axed its interim dividend Tuesday after losses deepened amid lower revenue following another "extremely challenging" period for the technical in Low

Read more
25 Jul 2019 11:46

Low & Bonar Completes Sale Of Civil Engineering Division

(Alliance News) - Performance materials firm Low & Bonar PLC has, it said Thursday, sold the Needle-Punched Non-Wovens unit, meaning the disposal of its Civil Engineering division is business

Read more
23 Jul 2019 16:01

UK Earnings, Trading Statements Calendar - Next 7 Days

Wednesday 24 July Tullow OilHalf Year ResultsPaypointQ1 Year ResultsLaw

Read more
10 Jul 2019 12:11

Low & Bonar Appoints Non-Executive At Request Of Major Investor

(Alliance News) - Low & Bonar PLC on Wednesday said it has appointed Giulia Nobili as a non-executive director at the request of its largest investor.Shares in Low & Bonar were down

Read more
25 Jun 2019 13:25

Low & Bonar Prepares For "Small" Interim Profit, Progresses Unit Sales

(Alliance News) - Low & Bonar PLC said on Tuesday it expects to report interim results in line with board expectations, with a "small" profit.The performance materials firm in

Read more
3 Jun 2019 12:16

Low & Bonar Sells Construction Fibres Business For Over EUR6 Million

LONDON (Alliance News) - Low & Bonar PLC on Monday said it has agreed to sold its Construction Fibres business, a part of Civil Engineering division, for a cash consideration of EUR6.4 the to

Read more
20 May 2019 16:52

LONDON MARKET CLOSE: Huawei Blow And Ryanair Woe Puts Pressure On FTSE

LONDON (Alliance News) - London stocks started the new week on the back foot following another knock back for Chinese tech giant Huawei amid an ongoing US-Sino trade saga.Travel stocks also played

Read more
20 May 2019 13:39

Monday broker round-up

(Sharecast News) - Hays: RBC Capital Markets upgrades to outperform with a target price of 175p.

Read more
20 May 2019 10:44

WINNERS & LOSERS SUMMARY: Ryanair Results, Outlook Knock Travel Stocks

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.----------FTSE 100 - down 2.7%, easyJet, down The

Read more
20 May 2019 10:43

Low & Bonar tumbles as it warns on profits, announces CEO departure

(Sharecast News) - Low & Bonar was under the cosh on Monday as it warned on profits and announced the departure of its chief executive officer, Philip de Klerk.

Read more
20 May 2019 10:14

Low & Bonar First Half "Materially Behind" Last Year; CEO To Depart

LONDON (Alliance News) - Low & Bonar PLC on Monday announced the upcoming departure of its chief executive and said its performance in the first half of its financial year will be behind"

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.