Weak sterling helps Low & Bonar through depressed year

International performance materials group Low & Bonar announced its final results for the year to 30 November on Wednesday.

The London-listed firm posted revenue of £400m - a 10.5% improvement year-on-year, though at constant currencies it represented a 0.2% fall.

Its operating profit before amortisation and non-recurring items was £34.7m, which was a 9.1% increase - but a 2.8% decrease at constant currencies - with its operating margin falling to 8.7% from 8.8% in the prior year.

Profit before tax, amortisation and non-recurring items was £29.2m, up 6.6% - or down 5.2% at constant currencies - while its basic earnings per share were 6.01p, a 2.6% uptick at face value and a 9% softening at constant currencies.

The board confirmed dividends per share of 3p, up 7.9% on 2015.

Its return on capital employed fell to 11.1% from 12.5% over the year.

“Low & Bonar has undergone a transformation over the past two years,” said chairman Martin Flower.

“We are now a nimbler, tighter, customer focussed organisation.”

Martin said the board was seeing the tangible results of that transformation with good progress towards its targets for most of the group.

“Without the issues in Coated Technical Textiles, we would now be very close to a double digit operating margin for the Group.

“We enter 2017 in good shape with a strong platform for growth,” he explained.

“We are confident of achieving further progress in 2017 and beyond for all of our businesses.”