Turf business, European construction weigh on Low & Bonar
Industrial fabric maker Low & Bonar said it continues to expect full year profits to be ahead of last year, however, owing to the losses in at its synthetic turf business Yarns, profits are expected to be slightly below current market expectations.
Industrial fabric maker Low & Bonar said it continues to expect full year profits to be ahead of last year, however, owing to the losses in at its synthetic turf business Yarns, profits are expected to be slightly below current market expectations.
The group said there was persistent weakness at its Yarns business following a reduction in discretionary public funding for artificial sports pitches. As a result, sales, which account for 6% of the group, have again been materially lower than the previous year.
Low & Bonar said despite the restructuring of Yarns, the recent deterioration in market conditions would result in the business making a loss this year. The group said it is currently evaluating options to address this situation.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The materials firm also cautioned, that following a strong first half, growth in civil engineering and building products markets has slowed as European construction customers became more cautious.
Otherwise the group said trading since May at its key businesses has continued as expected, with sales, profits and margins comfortably ahead of last year on a constant currency basis.
Sales growth within flooring, industrial and transport segments has been satisfactory and consistent with the first half of the year, it added.
Chief Executive Steve Good commented: "Our key businesses are performing well and we expect to make further progress this year, despite tough European markets and the adverse effects of a weaker Euro. We have continued investing in capacity and capabilities to extend our global reach and support future growth."
Year-end net debt is expected to be at a similar level to last year, in line with guidance.
CJ
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published