Low And Bonar: Good Growth Delivered And Anticipated
Edison | Jul 20, 2017 04:43AM ET
Low & Bonar PLC (LON:LWB): Good overall progress was achieved in H117, although market conditions and business unit performance were somewhat mixed and full year expectations are unchanged. A business strategy of increasing focus on better performing niche markets and margin enhancement is consistent with our double-digit earnings growth expectations. The rating acknowledges this and perhaps anticipates further improvement.
Good H1 progress
First half results showed a good increase compared to the prior period with reported normalised PBT and normalised EPS both up by more than 20% (10%+ on a constant currency basis). Strong volume growth in Building and Industrial and improved operating efficiencies in Coated Technical Textiles were the primary drivers of underlying performance.
Civil Engineering sector prospects appear to be improving though H1 was adversely affected by project timing delays. This also had an impact on net debt, amplifying the seasonal working capital outflow, leaving period end net borrowings at £149m. The 5% interim dividend increase was as expected.
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Low & Bonar - Good Growth Delivered And Anticipated
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