5 Sep 2014 07:00
LOW & BONAR PLC
("Low & Bonar" or "the Group")
Trading Update
Since reporting results on 10 July 2014, the Group has experienced a drop in demand across its European civil engineering markets reflecting a slowdown in construction activity and the continuing difficult economic and geopolitical climate in Europe. This sector represents approximately a quarter of the Group's sales.
Civil engineering sales grew by 4% in the first half on a like for like basis. However, taking the reduction experienced in Q3 into account, the Group anticipates sales in this sector will be flat for the year as a whole. Whilst a material improvement is not expected for the remainder of the year, the Group believes that the strong fundamentals of this sector remain in place.
Separately, as outlined in July, the Group's civil engineering joint venture in Saudi Arabia has continued to suffer a slower than expected order intake as a result of a delay in obtaining a key product certification. A loss of at least £1m is now anticipated for 2014.
The Group's other businesses continue to perform well and are in line with the Board's expectations. However, recognising the lower demand in the civil engineering sector, the Board anticipates that profit before tax, amortisation and non-recurring items for this year will be in a range of £25.3m¹, last year's result, to £26.5m.
¹ Adjusted for IAS19 change in accounting for pensions.
- End -
5 September 2014
Enquiries
Low & Bonar PLC 020 7535 3180
Mike Holt, Group Finance Director
Peel Hunt LLP 020 7418 8900
Charles Batten
Mike Bell
Instinctif 020 7457 2020
Matthew Smallwood
Helen Tarbet