Low & Bonar: H1 Profits Disappoint But Change Is Underway
Edison | Jul 23, 2018 05:33AM ET
Low & Bonar PLC (LON:LWB)
The new management team has a clear focus on improving financial and operational performance across the group and individual business units. H1 results bear testament to a number of challenges faced in the period but also showed signs that actions are beginning to take effect. We have reduced our EPS estimates (by c 20% this year, c 10% in the following two) to reflect more conservative margin assumptions.
H118 profits hit by mix and polymer input cost rises
Headline group revenue was modestly lower y-o-y in H118 but reported operating profit was down 42% (or £5.5m) compared to H117. Revenue mix accounted for around half of this reduction and unrecovered rising polymer input prices almost all of the remainder. Other effects – including higher volumes and initial cost saving actions – broadly netted out. Business unit themes were largely consistent with previous updates. A £19.7m exceptional charge (£18.2m net) including £13.3m goodwill impairment at Coated Technical Textiles (CTT) plus a number of other smaller-cost items was taken as the new management team seeks business improvement in a number of areas. Net debt stability is one indicator of progress here. The interim dividend was held at the prior year level.
To read the entire report Please click on the pdf File Below:
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.