LWB.L Regulatory News (LWB)

16 Oct 2008 07:00

Low & Bonar PLC

Interim Management Statement

Low & Bonar PLC ("Low & Bonar" or the "Group"), the international performance materials group, today publishes its Interim Management Statement, covering the period from 1 June 2008 to 16 October 2008 as required by the UK Listing Authority's Disclosure and Transparency Rules.

The disposal of our Flooring Division, completed on 30 September 2008, for a cash and debt free price of £123m, has been a significant step in the strategic realignment of the Group. We believe that our continuing business in technical textiles is positioned in a fundamentally attractive sector with specific long term growth drivers.  With leading positions in most of our business segments, a wide product range, extensive geographic reach and diverse end markets, we believe that the Group is well placed to sustain growth. 

This disposal has also strengthened the balance sheet by substantially reducing debt. We expect to remain comfortably within our financing covenants and our bank loan facilities are committed until December 2011.

The strength and breadth of our product range, together with leadership in most of our business segments. means that we expect trading for 2008 to be broadly in line with market expectations. Macroeconomic trends have clearly softened since the summer period and some of our business segments, whilst being resilient, have not been immune.  

At the start of the fourth quarter, we have seen some reductions in raw material prices and would expect this trend to continue during 2009 as weakening world demand and significantly increased supplier capacity in certain polymers impact our supply chain. In the third quarter, prices increased reflecting the spike in crude oil costs.

As a result of our recent management actions we are now clearly focused on attractive, niche markets with long term growth characteristics. We have a strong balance sheet and remain positive about the future prospects for the Group.

This Interim Management Statement (the "Statement") contains forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks. Other than in accordance with its legal or regulatory obligations, neither the Group nor anyone acting on its behalf undertakes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this statement should be construed as a profit forecast.

A copy of this Statement together with all other recent announcements can be found on the Group's website at ww.lowandbonar.com/lwb/investor/rns/