04 June 2007
Low & Bonar PLC Trading Statement
Low & Bonar PLC (the "Group"), the specialist materials group, is today issuing a first half trading update prior to the announcement of its interim results. The Group will announce its interim results for the six months ending 31st May 2007 on 16th July 2007.
During the first half, the Group has continued to make good progress in the successful execution of its stated strategy of organic and acquisitive growth. As a result, trading is in line with the Board’s expectations.
The Floors Division has made encouraging progress despite a higher than expected decline in lower margin third party sourced products sold to the Ministry of Defence. However the sale of manufactured branded products has increased and this change in sales mix has had a positive effect on the operating margin.
The Technical Textiles Division has benefited considerably from a full first half contribution from, and successful integration of, both Geo-Tipptex and Colbond, the acquisitions made during 2006. Continued progress has also been seen in our Fabrics business, offsetting the expected continuation of challenging trading conditions within Specialist Yarns. Overall, operating margins have progressed and the raw material prices environment has been as anticipated, with a much more stable pattern in this period. As noted in our Preliminary Announcement in February 2007 average raw material prices are not expected to change significantly during 2007. However, current expectations are that, from 2008, increased capacity amongst suppliers is expected to provide a downward pressure on raw material prices.
Contact
| Low & Bonar PLC |
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| Kevin Higginson |
Group Finance Director |
020 7535 3180 |
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| Tulchan Communications |
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| David Trenchard |
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020 7353 4200 |
| Peter Hewer |
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020 7535 4200 |