LWB.L Regulatory News (LWB)

EMBARGOED UNTIL

16 December 2010

LOW & BONAR PLC

TRADING UPDATE

Low & Bonar PLC ("the Group"), the international performance materials group, is pleased to provide a trading update for the year ended 30 November 2010 ahead of its preliminary results to be announced on 8 February 2011.

The improvement in sales across the Group, referred to in the interim management statement of 12 October 2010, has been sustained throughout the final quarter of the year as the Group continues to benefit from its international reach and increasing exposure to high growth markets. As a consequence we now expect sales growth to exceed 10% for the 2010 financial year and that full year profits before tax will be at the upper end of market expectations. 

The restructuring of the loss-making Technical Yarns business, also announced on 12 October 2010, is progressing satisfactorily. The closure of the Ostend factory and a social plan for the workforce has been agreed with employee representatives. Manufacturing output will be transferred to the Group's new facility in Abu Dhabi and the closure of the Ostend facility is expected to be concluded by June 2011.

The Group is also pleased to announce that it has successfully refinanced its banking facilities on favourable terms through to February 2015. This, together with the six year €45m debt private placement announced on 3 September 2010, provides the Group with a strong financial platform to support its growth agenda.

- Ends -

For further information, please contact:

Low & Bonar PLC 020 7535 3180

Steve Good, Group Chief Executive

Mike Holt, Group Finance Director

MHP Communications 020 3128 8100

Andrew Jaques / Rachel Hirst / Ian Payne

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 their 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.