2009

19 February 2009

Low & Bonar PLC 2008 Preliminary Results

Low & Bonar PLC ("Low & Bonar" or the "Group"), the international performance materials group, today announces its preliminary results for the financial year ended 30 November 2008 and the terms of a Placing and Open Offer.

Financial highlights:

	2007 As previously reported	2007 Restated to exclude Floors Division	2008 Excluding Floors Division	% Growth (2008 v. 2007 restated)
Group revenue	£311.8m	£210.3m	£335.2m	+59.4%
Statutory Group operating profit	£22.8m	£11.1m	£19.1m	+72.1%
Group operating profit*	£26.1m	£14.1m	£26.7m	+89.4%
Group profit before tax*	£22.4m	£10.4m	£16.0m	+53.8%
Earnings per share*	10.16p	4.62p	7.37p	+59.5%

* before amortisation and non-recurring items

• Placing and Open Offer, announced this morning, expected to generate net proceeds of c.£30m to improve significantly the Group's financial position and allow additional investment in profit growth initiatives.

Operational highlights:

• Disposal of the Floors Division in September 2008 has transformed and refocused the Group.
• Strategic emphasis now on creating a leading global performance materials business.
• MTX performed strongly during its first full year of ownership.
• Rate of product innovation increased through strong R&D focus.
• Volatile raw material environment successfully mitigated.
• Cost reductions and increases in operational productivity across the Group.
• Divisional operating margins increased.
• Leading positions maintained in a wide range of attractive niche markets.

Paul Forman, Chief Executive of Low & Bonar, said:

"2008 has been a very significant year for Low & Bonar, encompassing unprecedented levels of strategic refocusing, raw material volatility and changes to the economic background.

"Given the inherent seasonality in the Group's markets and the uncertainty surrounding global economic conditions, a clearer picture of underlying trading conditions and the outlook for the Group in 2009 is likely to take some time to emerge.

"The Board believes that the funds raised from the Placing and Open Offer announced today will improve the financial position and future prospects of the Group significantly and, at the appropriate time, allow it to invest in its planned organic growth initiatives and to take advantage of opportunities emerging from the current market environment. Our strategy of developing diverse product ranges for niche end markets and building leading market positions, allied to the underlying trend growth of the technical textile industry, all give the Board confidence for the medium to long-term prospects of the Group."

For further information, please contact:

Low & Bonar PLC	+44 (0)20 7535 3180
Paul Forman, Chief Executive
Kevin Higginson, Finance Director
Hogarth Partnership Limited	+44 (0)20 7357 9477
Andrew Jaques/Rachel Hirst/Ian Payne

DISCLAIMER

This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security.

This announcement is an advertisement and does not constitute a prospectus or prospectus equivalent document. Nothing in this announcement should be interpreted as a term or condition of the Placing and Open Offer. Any decision to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any security offered in connection with the Placing and Open Offer must be made only on the basis of the information contained in and incorporated by reference into the prospectus issued by Low & Bonar in respect of the Placing and Open Offer (the "Prospectus"). Copies of the Prospectus will be available on publication from Low & Bonar's head office.

No person has been authorised to give any information or to make any representations other than those contained in this announcement and, if given or made, such information or representations must not be relied on as having been authorised by Low & Bonar. Subject to applicable law and regulation in the United Kingdom, the issue of this announcement shall not, in any circumstances, create any implication that there has been no change in the affairs of the Groupsince the date of this announcement or that the information in it is correct as at any subsequent date.

No statement in this announcement is intended as a profit forecast or a profit estimate. Prices and values of, and income from, securities may go down as well as up and an investor may not get back the amount invested. It should be noted that past performance is no guide to future performance. Persons needing advice should consult an independent financial adviser.

Cautionary note regarding forward-looking statements

This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including, but not limited to, the terms "believes", "estimates", "anticipates", "expects", "intends", "plans, "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of the Group and the industries in which they operate.

By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industries in which it operates may differ materially from the impression created by the forward looking statements contained in this announcement. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group, and the development of the industries in which it operates, are consistent with the forward looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: the effect of the Placing and Open Offer on the Group; changes in the competitive framework in which the Group operates and its ability to retain market share; the Group's ability to generate growth or profitable growth; the Group's ability to generate sufficient cash to service its debt; the Group's ability to control its capital expenditure and other costs; significant changes in exchange rates, interest rates and tax rates; significant technological and market changes; future business combinations or dispositions; and general local and global economic, political, business, and market conditions.

You are advised to read this announcement and, once available the Prospectus and the information incorporated by reference therein, in their entirety for a further discussion of the factors that could affect the Group's future performance and the industries in which it operates. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur.

Other than in accordance with their legal or regulatory obligations, Low & Bonar does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

View the full results announcement (in PDF format).