(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 said sales in the half-year to May 31 were down 8% year-on-year, and the company expects to report a "small" underlying pretax profit for the period.
Net debt at the period end was around GBP99 million, representing a net debt to earnings before interest, tax, depreciation and amortisation ratio of 2.9 times. This is within the firm's banking covenant of 3.5 times.
Earlier in May, Low & Bonar warned it had made a slower recovery than expected in its second quarter, with its interim performance to be "materially behind" a year ago. In the first half of the 2018 financial year, the company reported an underlying pretax profit of GBP6.5 million on revenue of GBP206.2 million.
Low & Bonar said it continues to progress the disposal of its Civil Engineering division, and the sale of Construction Fibres is expected to close in early July. The sale process for the Needle-Punched Non-Wovens business is still expected to conclude during the current financial year.
Low & Bonar agreed to sell Construction Fibres for EUR6.4 million at the beginning of June.
Shares in Lower & Bonar were up 3.6% at 6.32 pence on Tuesday.