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29 May 2008 07:00
29th May 2008
Low & Bonar PLC("Low & Bonar" or "the Group")
PRE CLOSE TRADING STATEMENT
Low & Bonar, the international technical textile and contract flooring manufacturer is today issuing a pre-close trading update prior to the announcement of its interim results. The Group will announce its interim results for the 6 months ending 31 May 2008 on 14 July 2008. The Group has continued to trade in line with our expectations, supported by our broad product range and geographic spread, and the increased rate of new product introductions. Technical Textiles has traded well and has benefited from a first half contribution from MTX, the technical coated fabrics business, acquired in January this year. MTX is trading slightly ahead of our expectations, with a record sales month in April, and the integration process remains firmly on track. We have also seen further improvements in the financial performance of the Technical Yarns business. Raw material pricing, as expected, despite high oil prices, has remained at acceptable levels with one key material falling in price for the last four months.
Contract flooring has also continued to trade satisfactorily, benefiting from a first time contribution from Westbond, the fusion bonded carpet tile business, acquired in January.
Across the Group, the impact of the strength of the Euro will have a mildly beneficial impact on earnings in the first half, and, provided this exchange rate remains at current levels, also for the full year. Underlying cash flows in local currency are as expected but the same exchange effect will also increase levels of net debt on translation. The breadth of product range and geographic diversity that supported both Divisions during the first half is expected to continue to be beneficial, and gives us confidence to expect continued progress for the current year and beyond.
A City Business Briefing will be held for Analysts and Shareholders on Monday 2 June to provide this audience with a greater understanding of the ways in which Low & Bonar is adding value through innovation and design. No new or material information relating to the Group's trading or performance will be disclosed during this event.
Contact:
Low & Bonar PLCPaul Forman - Group Chief Executive - 020 7535 3180Kevin Higginson - Group Finance Director - 020 7535 3180
Hogarth Partnership LtdAndrew Jaques / Rachel Hirst / Ian Payne - 020 7357 9477
Notes to Editors: Low and Bonar is a world leading technical textiles and contract flooring manufacturer, operating from over 20 sites in 9 countries. The Group is quoted on the London Stock Exchange and is committed to delivering shareholder value through a strategy of organic and acquisitive growth. Recent acquisitions include the acquisitions of Mehler Texnologies (MTX), the German-based manufacturer of technically coated fabrics, and Westbond, the specialist UK producer of fusion-bonded carpet tiles.
Low & Bonar comprises two divisions: Technical Textiles and Contract Flooring . The key characteristics of its businesses are that they manufacture added-value products based on advanced technology and address markets with strong growth potential. Many of Low & Bonar's products are leaders in their niche markets.
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