Low & Bonar plc 2017 final results

January 31, 2018

 

Low & Bonar PLC ("Low & Bonar" or "the Group"), the international performance materials group, today announces its unaudited results for the year ended 30 November 2017.

The Group consists of four Global Business Units: Building & Industrial ("B&I"), Interiors & Transportation ("I&T"), Civil Engineering ("CE") and Coated Technical Textiles ("CTT"). 

 Key Performance Metrics(1):

2017 

2016 

Actual

Constant currency(2)

Revenue

£446.5m

£400.0m

11.6%

4.5%

Underlying operating profit

£35.5m

£34.7m

2.3%

(4.6%)

Underlying operating margin (3)

8.0%

8.7%

 

 

Underlying profit before tax

£30.7m

£29.2m

5.1%

(2.2%)

Basic underlying EPS

6.42p

6.01p

6.8%

(0.8%)

Net debt(4)

£138.4m

£111.0m

 

 

Dividend per share

3.05p

3.00p

 

 

Return on capital employed(5)

11.1%

11.1%

 

 

 

(1)         Figures in this table are presented on an underlying basis, and exclude all non-underlying items (which are outlined in Note 6 of the full report attached).
(2)         Constant currency is calculated by retranslating comparative period results at current period exchange rates.
(3)         Underlying operating profit as a percentage of revenue (return on sales).
(4)         Interest bearing loans and borrowings, net of cash and cash equivalents.
(5)         Underlying operating profit as a percentage of net assets plus net debt.

 Statutory Metrics:

 2017

 2016

Operating (loss)/profit

£(14.9)m

£31.4m

(Loss)/profit before tax

£(19.7)m

£25.9m

Basic EPS

(5.56)p

5.20p

 

  • Strong sales growth despite a generally difficult market backdrop
  • Underlying profit growth in B&I and I&T offset by disappointing performance in CE and lower than anticipated performance in CTT
  • £31.6m asset and goodwill impairments in Civil Engineering
  • Cost reduction and performance improvement plan being implemented to optimise the business
  • Completion of £26m investment in Colback manufacturing site in Changzhou, China in 2018, reflects growth opportunity in I&T and B&I
  • Net debt of £138.4m with a clear plan to reduce by at least £15m during 2018
  • Philip de Klerk announced today as Chief Executive Officer with effect from 1 March 2018 (see separate announcement)
  • Peter Bertram appointed non-executive director with effect from 1 February 2018 (see separate announcement)

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Martin Flower, Chairman, said:

"The group achieved strong sales growth in 2017 despite a generally difficult market backdrop. The profit performance across our four global business units was mixed, with profit growth in B&I and I&T offset by a significant reduction in profitability in Civil Engineering and a lower than anticipated performance in CTT.

We develop and apply some of the world's most advanced fabric technologies and we do so whilst keeping close to our customers and anticipating their requirements. This makes us well positioned to realise opportunities for profitable growth. 2018 presents both challenges and opportunities for Low & Bonar, as we work to determine the future strategy of the Civil Engineering business, deliver performance improvement at CTT, whilst continuing to support the growth strategies of our strong B&I and I&T businesses. We are confident of making further progress this year across all these areas." 

For further information, please contact:

Low & Bonar PLC
Trudy Schoolenberg, Interim Group Chief Executive
Philip de Klerk, Group Chief Financial Officer


020 7535 3180

Instinctif Partners
Matthew Smallwood
Helen Tarbet
Rosie Driscoll

020 7457 2020

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