Interim Management Statement (2552Q)
October 17 2011 - 2:00AM
UK Regulatory
TIDMLWB
RNS Number : 2552Q
Low & Bonar PLC
17 October 2011
LOW & BONAR PLC
Interim Management Statement
Low & Bonar PLC ("the Group"), the international performance
materials group, today publishes its interim management statement
for the period since 31 May 2011.
We are pleased to be able to report that the overall demand for
our key products continues to be robust, and we expect that volumes
will be ahead of the second half of last year, despite strong
comparatives in that period. The Civil Engineering and Flooring
markets have continued to perform well with the Transport segment
continuing to benefit from a recovering trailer market. Demand in
Building and Industrial markets remains subdued. Volumes of
artificial grass yarn are running below prior year as this market,
which represents 8% of Group sales, has been affected by funding
shortages within the sports fields sector in both Europe and USA.
Despite this, we still expect the Yarns business to at least break
even this year.
Overall raw material polymer prices have stabilised, albeit at a
high level. We therefore continue to expect stronger operating
margins in the second half, however increasing margins in some of
the more price sensitive segments of our Technical Coated Fabrics
division has been more challenging than anticipated.
Our joint venture in Saudi Arabia with NATPET, Bonar Natpet, is
progressing and construction of the production facility is due to
commence shortly and it is expected to become operational before
the end of next year. The joint venture, with its technological,
marketing and raw material strength, is well positioned to take
full advantage of the high growth geotextile markets in the Middle
East and the Indian subcontinent.
Our effective tax rate for the year is likely to be circa 25%,
compared to 31% last year, principally as a result of successfully
securing tax benefits in the Netherlands arising from new product
developments. The rate includes an adjustment in respect of prior
years relating to this benefit of 2%; the estimated rate for next
year is around 27%.
Overall we continue to expect that the Group will deliver
another year of substantial progress and that profits will be in
line with expectations.
Steve Good, Group Chief Executive, said:
"We are confident of delivering another year of substantial
progress. While we remain alert to the uncertain macroeconomic
indicators, the Group is in good financial shape and well
positioned to adapt to opportunities and challenges ahead."
17 October 2011
For further information, please contact:
Low & Bonar PLC 020 7535 3180
Steve Good, Group Chief Executive
Mike Holt, Group Finance Director
College Hill 020 7457 2020
Matthew Smallwood
Mike Davies
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", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
variations or comparable terminology. These forward looking
statements include matters that are not historical facts.
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 and
liquidity 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,
and liquidity are consistent with the forward looking statements
contained in this announcement, 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: 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. 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 its legal or regulatory
obligations, the Group 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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