Low & Bonar full year profit slips amid challenging markets

For the year ended 30 November 2015, statutory pre-tax profit fell to £12.4m from £16.7m the previous year, as the group booked an £8.2m impairment charge on its Saudi Arabian joint venture.

Meanwhile, revenue edged down 3.6% to £395.8m on the back of a weak euro, but was up 2.4% at constant currency.

Low & Bonar said good progress was made in all of its global business units and the operating margin improved 60 basis points to 8.3%.

The company lifted its final dividend to 1.80p per share from 1.75p in 2014, bringing the full year dividend to 2.78p from 2.70p.

Chairman Martin Flower said: "The group has continued to progress, delivering a good performance against a challenging market backdrop.

“Whilst it is expected that market conditions in some of the group's end markets will remain difficult, the Board is confident that, with continued focus on efficiency gains and improved commercial execution, further progress will be made in the current year."

The company expects market conditions in Europe to remain difficult, while in the Middle East, demand is likely to be subdued and possibly worsen.

However, it said the marked economic slowdown in China is not expected to have a substantial impact on its sales growth in the local market

At 1100 GMT, shares were up 5% to 63p.