Low & Bonar PLC Trading Update (6257T)
October 16 2017 - 1:00AM
UK Regulatory
TIDMLWB
RNS Number : 6257T
Low & Bonar PLC
16 October 2017
Low & Bonar PLC
Trading Update
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 2017.
The Building & Industrial business unit has continued to
perform as expected during the second half, benefiting from a
focused approach to niche market segments. End markets,
particularly in North America remain positive and the Board expects
this business to show strong year-on-year progress. We remain on
track to complete the sale of the Lokeren based Agro-textiles
operations.
Interiors & Transportation's solid performance has continued
through the second half. Strong sales growth in China, with
increasing demand from local customers, has generated good returns
from the Changzhou facility. Price increases implemented in the
first half are also benefiting the second half performance.
With operational issues in Coated Technical Textiles now firmly
behind us, work on rebuilding customer relationships and restoring
margins is progressing, while recovering raw material cost
increases.
Market conditions for the Civil Engineering business remain
challenging in the second half, and while year on year revenue is
ahead on a constant currency basis, demand for higher value
specification projects remains subdued, resulting in an adverse
sales mix. Consequently, the expected improvement in financial
performance and anticipated material reduction in inventory levels
in the second half will not be achieved. Therefore, Civil
Engineering is now not expected to make a profit for the year as a
whole. As such, management is reviewing the Civil Engineering
business and will make an objective assessment as to its ability to
reach and sustain the Group's financial targets.
Raw material prices in the second half have been influenced by a
number of factors, including the impact of the hurricanes in the
US, and have remained at elevated levels rather than reducing as
anticipated at the half year. Robust actions to recover this
incremental cost through price increases have been taken in all
business units along with cost saving initiatives, which have
together reduced the impact on margins.
The Board continues to expect the Group to show good progress
overall for the year to 30 November 2017.
16 October 2017
For further information, please contact:
Low & Bonar PLCBrett Simpson, CEO
Philip de Klerk, CFO 020 7535 3180
Instinctif Partners
Matthew Smallwood
Helen Tarbet
Rosie Driscoll 020 7457 2020
Notes:
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR") EU no.596/2014. Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEAEESFALXFAF
(END) Dow Jones Newswires
October 16, 2017 02:00 ET (06:00 GMT)
Low & Bonar (LSE:LWB)
Historical Stock Chart
From Apr 2024 to May 2024
Low & Bonar (LSE:LWB)
Historical Stock Chart
From May 2023 to May 2024