Low & Bonar PLC 2007 Preliminary Results

Low & Bonar PLC (“Low & Bonar” or the “Group”), the international technical textiles and contract flooring manufacturer, today announces its preliminary results for the year ended 30 November 2007.

Highlights include:

• Group profit before tax* up 52% to £22.4m (2006: £14.7m) on revenues up 39% at £311.8m (2006: £224.5m); acquisitive and organic growth achieved.
  
  
• Earnings per share* increased by 16% to 10.16p (2006: 8.75p).
  
  
• Final dividend increased by 11% to 3.1p (2006:2.80p).
  
  
• A strong performance across the business with both Divisions delivering growth in sales, profit and market share.
  
  
• Technical Textiles Division benefited strongly from the successful integration of the Colbond and Geo-Tipptex acquisitions and enhanced operating margins. Floors Division growth underpinned by focus on higher margin own-brand products.
  
  
• Chinese JV continued to grow and maintained double digit operating margins, with especially strong sales of grass yarn products.
  
  
• Significant opportunities for selected, value–adding acquisitions that give the Group access to complementary products and/or new geographic markets. Two deals completed January 2008.

* before amortisation and non-recurring items

Duncan Clegg, Low & Bonar’s Chairman, commented:

"We are in growing sectors with strong market positions and we view the future with confidence.

"We believe that our businesses are well positioned to take advantage of the significant opportunities we see ahead and expect continued progress in both Divisions over the coming year. Our end markets – with their negligible exposure to any downturn in consumer confidence – continue to look resilient.

"The start of our new financial year has been in line with our expectations".

Paul Forman, Low & Bonar’s Chief Executive, commented:

"Low & Bonar's diverse product range and global leadership position in our chosen niche markets have enabled us to deliver strong increases in sales and profits in 2007 at the same time as investing significantly in value-adding acquisitions, new product innovations, international expansion and enhanced operational efficiencies to drive our future growth. Our end-markets continue to be robust and we remain positive about the outlook for the current year and beyond."

For further enquiries please contact:

NOTE TO EDITORS

1. Low and Bonar is a world leading technical textiles and contract flooring manufacturer, operating from over 20 sites in 9 countries. The Group is quoted on the London Stock Exchange and is committed to delivering shareholder value through a strategy of organic and acquisitive growth. Recent acquisitions include the acquisitions of Mehler Texnologies, the German-based manufacturer of technically coated fabrics, and Westbond, the specialist UK producer of fusion-bonded carpet tiles.
   
   Low & Bonar comprises two divisions: Technical Textiles and Contract Flooring . The key characteristics of its businesses are that they manufacture added-value products based on advanced technology and address markets with strong growth potential. Many of Low & Bonar’s products are leaders in their niche markets.
   
   
2. You can view or download copies of this announcement and our latest Half Year and Annual reports from our website at www.lowandbonar.com or request free printed copies by contacting Matthew Joy, Company Secretary.
   
   

View the full results announcement (in PDF format).