Low & Bonar (“the Group”), the international performance materials group with leading positions in niche industrial markets, today provides a brief update on trading for the year ended 30 November 2014. The Group expects to report full year results on 3 February 2015.
On a constant currency basis, sales were 7.2% ahead of last year (5.5% up on a like-for-like basis excluding Texiplast, which was acquired in H2 last year); sales in H2 were 4.6% up overall, 3.2% ahead on a like-for-like basis.
- As anticipated in October’s IMS, H2 sales within Bonar were mixed, albeit 2.1% ahead in aggregate on a like-for-like basis (+2.8% full year):
- Flooring was strong, up 11.6% (+6.8% full year)
- Civil Engineering was 5.1% down (-0.8% full year). We expect the market to remain subdued into the first half of next year
- Building Products, after a strong start to the year, were 2.3% down in H2 (+4.4% full year); strong sales in the USA partially mitigated weak demand within Europe
- Texiplast’s sales were £8.8m for the full year, £5.2m in H2
- Technical Coated Fabrics were 6.0% ahead in H2 (+8.7% full year)
- Sales by Yarns were 1.5% above H2 last year (+14.0% full year)
- Full year profit before tax, amortisation and non-recurring items is expected to be similar to last year (as restated for IAS19 revised), in spite of a £2.4m headwind on translating overseas earnings into sterling. Net debt as at 30 November was £88m.
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.