Low & Bonar PLC today reported its results for the half year ended 31 May 2003.

	2003	2002	%
Turnover	£89.4m	£79.1m	+ 13
Operating profit (pre exceptional)	£ 5.2m	£ 3.9m	+ 33
Profit before tax	£ 4.3m	£ 3.8m	+ 13
Earnings per share (pre exceptional)	3.28p	2.44p	+ 34
Dividend per share	1.50p	2.50p

• Pre exceptional eps growing by 34% from 2.44p to 3.28p

Floors:

• Operating profit growth from existing business of £0.5m despite lower sales in demanding markets
  
  
• Acquired carpet tile business trading in line with expectation, and achievement of synergies from acquisition on track

Yarns & Fabrics:

• Continued growth in artificial grass yarns business
  
  
• Operating profit at Belgian business held despite steep rise in polypropylene prices in 2nd quarter

Plastics:

• Operating profit increased by £0.8m
  
  
• Revenue growth of 6%, originating in North America and Northern Europe
  
  
• Turnaround of French business proceeding in line with expectations
  
  
• Ungeared balance sheet with £0.9m net cash reflecting strong cash performance
  
  
• Dividend per share of 1.5p in line with the new dividend policy announced at the year end

Commenting on the results, Low & Bonar PLC’s recently appointed Chief Executive, Paul Forman, said:

"The market conditions in which we operate remain demanding. Nonetheless we have achieved underlying revenue growth in four of our five business areas. This, allied to cost restructuring activities, has produced Low & Bonar PLC’s first like-for-like profit growth in a considerable period. I am pleased to report that the programme to bring French Plastics to a breakeven level is progressing as planned and that the acquisition of the carpet tile business is meeting the expectations set out in the circular in January. Operating profit is improving despite our having to contend with particularly high raw material costs in the second quarter and an increased pension charge. A tight focus on cash management has also enabled us to finish the half year with no borrowings, despite the carpet tile business acquisition. It remains difficult to predict the market conditions but I remain cautiously confident that we can continue this improved performance in the second half."



Enquiries:

Duncan Clegg, Chairman

Paul Forman, Chief Executive

Jon Kempster, Finance Director

Low & Bonar PLC Tel: 020 7298 6820

Tim Spratt

Michelle Morton

Financial Dynamics Tel: 020 7831 3113