Low & Bonar PLC 2006 Preliminary Results

Low & Bonar PLC (the “Group”), the Specialist Materials Group, today reports its results for the year ended 30 November 2006.

Financial Highlights

• Revenue increased by 28.0% to £224.5m (2005: £175.4m)
• Operating profit* increased by 27.8% to £17.0m (2005: £13.3m)
• Profit before taxation, amortisation and non-recurring items increased 20.5% to £14.7m (2005: £12.2m).
• Final dividend increased by 6.1% to 2.80p (2005: 2.64p) making 4.38p for the year (2005: 4.15p).
• Basic earnings per share increased to 5.80p from a loss of 6.39p
• Earnings per share before amortisation and non-recurring items of 8.75p (2005: 9.50p)
• Successful £41.1m rights issue (net of costs) and increased debt facility of £175m.

Where appropriate current and prior year numbers have been adjusted for the effects of the rights issue.

Operational Highlights

• Acquisition of Colbond and Geo-Tipptex has doubled the size and strengthened the strategic position of the Technical Textiles Division.
• Floors Division operating profit* increased by 20.2% to £10.7m (2005: £8.9m)
• Technical Textiles Division operating profit* increased by 23.0% to £9.1m (2005: £7.4m), despite £5m raw material and energy price increases.

* operating profit before amortisation and non-recurring items..

Commenting on the results Duncan Clegg, Chairman said:

"It is pleasing to report another year of encouraging progress and substantial growth, most notably through the acquisition of Colbond. Yet again we have seen progress in the underlying business notwithstanding a demanding raw material environment. We will retain our strategic focus on the two core markets of contract flooring and technical textiles and I am confident we have the financial and commercial base to continue our recent record of significant growth both organically and from acquisitions.

Our focus remains on driving value creation for shareholders through profitable cash generative growth, both from existing businesses and new acquisitions. We are well positioned in diverse market places and have, thanks to a successful debt and equity fund raising exercise, a strong balance sheet to take advantage of opportunities as they arise."

Paul Forman, Chief Executive commented:

"This has been an extremely busy year and one with a number of significant achievements. Both the Floors and Technical Textiles businesses have achieved growth in profit whilst the acquisition of Colbond has provided a step change in the size and market position of the Group. While raw material costs remain high, we expect that further supplier production capacity being installed globally next year will finally put some downward pressure on our input costs."

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View the full results announcement (in PDF format).