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Low & Bonar PLC

Trading Update

On track to meet expectations

Low & Bonar PLC ("the Group"), the international performance materials group with leading positions in niche industrial markets, today issues a trading update for the period since 31 May 2016.

Overall, the Group remains on track to meet expectations for the full year.

Sales and profits within the Building & Industrial and Interiors & Transport businesses continue to be strong. Following the opening of our new Colback production plant in Changzhou, China earlier this year and the successful build-up in sales, we have started to order equipment to double the plant's capacity by Q1 2018 to ensure that anticipated growth in global demand is not capacity constrained. The £22m incremental cash cost of the plant's expansion will be spread over the next two years in-line with guidance. Sales within Coated Technical Textiles have been somewhat muted, although the manufacturing performance has, as expected, improved. Whilst markets remain challenging, we continue to see good progress within Civil Engineering from actions taken to improve our commercial effectiveness.

The Group is well positioned to make further progress in 2017.

3 November 2016

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Forward looking statements

This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including, but not limited to, the terms "believes", "estimates", "anticipates", "expects", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include matters that are not historical facts.

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 are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity may differ materially from the impression created by the forward looking statements contained in this announcement. In addition, even if the results of operations, financial condition, and liquidity are consistent with the forward looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: changes in the competitive framework in which the Group operates and its ability to retain market share; the Group's ability to generate growth or profitable growth; the Group's ability to generate sufficient cash to service its debt; the Group's ability to control its capital expenditure and other costs; significant changes in exchange rates, interest rates and tax rates; significant technological and market changes; future business combinations or dispositions; and general local and global economic, political, business and market conditions. In light of these risks, uncertainties and assumptions, the events described in the forward looking statements in this announcement may not occur.

Other than in accordance with its legal or regulatory obligations, the Group does not undertake any obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise.