LONDON (Alliance News) - Low & Bonar PLC Tuesday said it has made a "solid start" to its financial year, with lower raw material costs offsetting slightly lower-than-expected volumes meaning profits remain in line with expectations.
In a trading update, the performance materials company said it is confident of meeting expectations for the year that ends on November 30.
It added that its Saudi joint venture, Bonar Natpet, has secured a number of important product approvals, although sales development remains slow. It has also seen the euro continue to weaken in recent months, but said the effects are broadly neutral thanks to the strength of the US dollar and a benefit from increased export sales to Europe.
The company is expected to report a pretax profit of GBP26.2 million in the current financial year, according to a consensus of five analysts on Morningstar, and earnings per share of 5.68 pence. It had reported a pretax, pre-items profit of GBP26.3 million for its last financial year, and basic EPS pre-items of 5.46p.
Its shares were up 1.8% at 56.00 pence Tuesday morning, and are up 12% so far in 2015.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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