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Low & Bonar PLC 2005 Interim Results
Low & Bonar PLC today reports interim results for the half year ended 31 May 2005.
2005 |
2004 |
% |
|
| Turnover | £110.5m |
£94.7m |
16.7 |
| Operating profit pre exceptionals | £ 4.2m |
£ 6.2m |
-32.5 |
| Operating profit before tax pre exceptionals and amortisation | £ 4.8m |
£ 6.5m |
-25.8 |
| Profit before tax | £ 3.9m |
£ 5.7m |
-31.9 |
| Earnings per share pre exceptionals and amortisation | 3.26p |
4.09p |
-20.3 |
| Earnings per share | 2.61p |
3.80p |
-31.3 |
| Dividends per share | 1.70p |
1.60p |
6.2 |
Highlights
| Strong revenue growth with turnover up 16.7% to £110.5m | ||
| Revenue growth offset, as predicted, by increased raw material costs, additional operating costs relating to major new product introductions and upgrades of manufacturing capability | ||
| Operating profit after exceptionals of £4.2m (2004: £6.0m) | ||
| Strong sales performance from Floors driven by full impact of MoD contract but with profit affected by almost £2m of raw material costs and increased sales and marketing | ||
| Robust performance in Yarns & Fabrics, having grown sales significantly and absorbing over £2m of additional raw material costs | ||
| Successful integration of two recent acquisitions in Yarns & Fabrics and significantly upgraded Belgian manufacturing capacity | ||
| Acquisition of Xirion, announced last week, further strengthens Yarns & Fabrics position as a global leader in the attractive artificial grass yarn market | ||
| Sale of Plastics gives enhanced strategic focus on the higher margin Floors and Yarns & Fabrics Divisions. Proceeds to finance further value-adding and strategically appropriate acquisitions | ||
| Dividend will be increased to 1.7p following capital restructuring (2004: 1.6p) |
Commenting on the results, Paul Forman, Group Chief Executive, said:
“This is a satisfactory performance against a backdrop of high raw material prices, combined with a difficult trading environment and anticipated additional costs. Our recent actions on cost reduction and product introductions, particularly in Floors, linked to the recent reductions in raw material costs give us confidence for an improved second half.
The disposal of our Plastics Division will allow us to focus more fully on our two core Divisions and creates additional funds to support yet further growth. Our two acquisitions since the start of the current financial year are a clear indication of our commitment to this strategy.”
Contacts:
| Low & Bonar PLC | |
| Paul Forman, Group Chief Executive | +44 (0) 20 7298 6820 |
| Jon Kempster, Group Finance Director | |
| Tulchan Communications | |
| David Trenchard | +44 (0) 20 7353 4000 |
View the full results announcement (in PDF format).