LONDON (Alliance News) - Low & Bonar PLC Tuesday reported an increase in pretax profit for the recent full year, as it announced Chief Executive Steve Good will retire in the second half after a replacement is found.
The company which supplies yarns, fabrics and fibres to the materials industry posted pretax profit of GBP17.8 million for the period ended November 30, 2013, up from GBP6.1 million a year earlier, reflecting a strong performance across the business.
Operating profits were 5.6% higher than in 2012 at GBP32.2 million, from GBP30.5 million, boosted by a GBP400,000 contribution from recent acquisition Texiplast.
The component designer and manufacturer acquired Slovakian engineering products producer Texiplast in a deal worth around GBP16 million last year.
Revenue rose to GBP403.1 million from GBP380.5 million in 2012, which Low & Bonar attributed to a successful year for the yarn business.
The Yarns division supplies yarns used in the manufacture of artificial grass in sports and landscaping applications, as well as yarns used as a backing material in the manufacture of woven carpets. It posted revenue of GBP32.8 million, up from GBP26.5 million in 2012 an increase of 24%.
The technical coated-fabrics arm which supplies products such as side curtains for lorry trailers, advertising banners, marquees and tarpaulins to the print, architectural and transport markets posted revenue of GBP124.7 million, up from GBP115.3 million in 2012.
The Bonar division, which supplies products such as geosynthetics, carpet tile backing, agrotextiles and construction fibres saw revenue increase to GBP245.6 million from GBP238.7 million in 2012. In constant currencies, this represented an 0.3% decline, which the company blamed on "abnormal" weather conditions across Europe affecting civil engineering and building products markets.
Financially, overall net debt increased to GBP86.8 million from GBP82.6 million at November 2012, as cash and cash equivalents fell to GBP17.9 million from GBP26.9 million a year earlier.
"The group has continued to make investments to drive future growth: extending its product range in attractive segments with the acquisition of Texiplast, and increasing its geographic reach, Chairman Martin Flower said in a statement.
"These investments are already contributing to the current year and further underpin the board's confidence in a continuation of cash generative, profitable growth," he added.
The board proposed an interim dividend of 2.6 pence per share, up from 2.4 pence.
The company said the search for a new chief executive has begun, and Good will remain in his role until the second half of 2014 to hand over to his successor.
Low & Bonar shares were trading at 84.86 pence, down 1.64 pence or 1.9%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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