|Low & Bonar
||EPS - Basic
||Market Cap (m)
|Construction & Materials
Low & Bonar Share Discussion Threads
Showing 1126 to 1145 of 1150 messages
|Midas tip, Mail on Sunday
|Yes, I feel the market will wait until the interims to give a long waited re-rating. In the meantime enjoy the 2p dividend with very little dowside in the share price if at all|
|Quiet yesterday but a buyer has now appeared. Wonder what they plan? The two year high is about 75p. Was that update with the preliminaries good enough to take us back there? I am a holder, so maybe biased, but I do think the current year will be a good bit better than 2016 (coated textiles should have improved, probable resolution to the Saudi jv, and the other divisions are trading well.)
If the interims confirm things are on plan, I'd guess we go even higher.
Dividend of 2.0p per share available till 17 March 2017.
(No advice intended.)|
|Seems to have settled +2.5p (7%) on the results RNS, looks about right given positive TS back in November that had already lifted the price.|
|Results look good for the most part. Coated textiles was a big negative but 'largely resolved'.
For the current year, if they have resolved the Coated Textiles and win back unhappy customers, then eps for whole group could rise by 20%? Sound bouyant about their prospects.
Pension risk has been laid off for UK final salary scheme = good.
Nice lift in the dividend.
Share price prediction? I think the market will look forward, so up 5p?|
|I hope so as I made my first purchase here recently.|
|Chinese factory... great move
Currency translation back into sterling very very favourable
|Nice buy of a 1,000,000 shares. Someone is confident.|
|Interview: Brett Simpson, chief executive of Low & Bonar
|attracting some volume|
|Strong buy recommendation in the current IC edition.|
|Low & Bonar: Growth stock with a decent divi
14:01 11 Oct 2016
Law & Bonar can trace its roots back to the turn of the last century when it first started weaving jute, a vegetable fibre that was used in rope.
Low & Bonar: Growth stock with a decent divi
The company's fabrics are used in civil engineering, building and construction.
Shares in Low & Bonar (LON:LWB) have traded in a very narrow range in the year to date and are barely changed in that period.
The valuation of the business, at 11 times 2016 earnings per share, dropping to 9.3 times 2017 EPS, suggests the company is stagnating.
However, as we will see, nothing could be further from the truth.
Before we make the investment case, it is probably worth looking a little closer at what the business does and how it makes its money.
Law & Bonar (L&B) can trace its roots back to the turn of the last century and first started weaving jute, a vegetable fibre that was used in rope and matting, in 1912.
Today it is a market leader in sophisticated performance materials that makes yarns, fabrics and fibres used in civil engineering, building, construction, transportation and other industrial applications.
It is divided into four business units that are international.
Colback, one of its best-selling products, is all around as it provides the backing for floor tiles and is used inside cars.
WATCH: L&B boss on the potential of the business
In fact, the company has invested heavily (£26mln) in a state-of-the-art factory in Changzhou, China, that manufactures the product.
It is within 200 miles of 80% of the country’s textile flooring industry giving it a ready market. The plan is to double the footprint of the plant over the next few years.
The investment in China was part of L&B’s strategy to broaden its geographic footprint outside the UK and Europe, which accounts for 65% of revenues.
The company has evolved under chief executive Brett Simpson. It is more market-focused, rather than being product driven.
What this means in practical terms is it listens to customers and creates products they want or need rather than developing a new fabric or fibre and then trying to find a market for it.
It might make create innovative material in-house, but equally it could buy in the expertise.
It is always looking to move sideways into what Simpson calls “adjacent markets” – though only where the return is attractive.
And L&B is driven by returns (particular return on sales and capital employed) and takes what he calls a “portfolio approach” to the businesses it operates.
In other words, if an L&B operation doesn’t pass muster, it is disposed of.
In fact the artificial grass yarns unit is being sold for £24mln for that very reason.
“We worked hard and made big improvements to the relative performance; however, the absolute returns are just not high enough and we are divesting it,” said Simpson.
“We are also working on issues with our Saudi JV [joint venture] so it doesn’t make further losses.”
That hard-nosed approach appears to be working – just look at the forecasts made by the company’s broker Peel Hunt.
It sees pre-tax profits growing by 12% this year to £28.5mln and then to £33.5mln the year after and to £36mln by 2018.
L&B is forecast to pay a total dividend of 2.9p this year, which equates to a very decent 4.4% yield.
Net debt, which was just under £140mln when L&B last updated, is forecast to fall to around £95mln by the end of the year.
Simpson says that level of borrowings is manageable and well within its target range.
According to Peel Hunt the current share price of 64p “does not reflect strategic progress to date towards improved quality of earnings and higher returns, nor the positive earnings momentum established over the last 12 months”.
It says L&B shares are worth 90p each.
“After a period of heavy investment, we now expect earnings growth to accelerate and the balance sheet to deleverage,” said analyst Dominic Convey.
He expects the stock to receive a “deserved re-rating”.
Boss Simpson won’t be drawn on the share price, but is satisfied L&B is moving in the right direction.
“We know where we are making money,” he said.
“We know where our strengths are and we are building on them and pushing into new geographies as well as sorting out the legacy issues.”
|You mean Mr. Vaseline|
|You mean Mr. Vaseline|
|There's some buying interest this morning. Probably responding to Peel Hunt raising their price target from 85p to 90p.
I have some hope we'll see an encouraging trading update around the end of October.|
|Hope Keith Vaz not involved here........|
|Brett Simpson purchased 100,000 shares today. Time to follow his lead.|
|Just doubled my holding here, looks undervalued and not much risk re Brexit. I've got some losses to recover though.|
|Thanks Ed 123.... just trying to understand the company|