Low & Bonar Share Discussion Threads

[masurenguy] 25/3/2014 08:06

Positive IMS !

RNS Number : 0846D
25 March 2014
LOW & BONAR PLC

Interim management statement

Low & Bonar ("the Group"), the international performance materials group with leading positions in niche industrial markets, today publishes its interim management statement for the period since 30 November 2013. Overall, the Group has made a positive start to the year with sales comfortably ahead of last year. Sales to the Civil Engineering, Building Products, Industrial and Leisure sectors have performed particularly strongly. The integration of the recently acquired Texiplast business, now renamed Bonar Geosynthetics,
is well underway. The business is performing well and the commercial synergies are beginning to come through, as planned. Since the year end, sterling has strengthened against all the major currencies in
which the Group's sales and profits are generated. Based on current exchange rates, the projected impact on current year reported profits would be circa £2m in comparison to last year's average rates. The Group remains on track to deliver another year of significant progress.

[masurenguy] 04/2/2014 08:00

Good progress !

RNS Number : 2198Z
04 February 2014
Low & Bonar PLC

Final Results for the year ended 30 November 2013

MOMENTUM REGAINED, CONFIDENT OF FURTHER PROGRESS

Highlights

Continuing operations

2013
2012
Actual
Constant currency(1)

Revenue
£403.1m
£380.5m
+5.9%
+2.8%

Operating margin (2)
8.0%
8.0%
-
PBTA (2)
£26.1m
£ 24.5m
+6.5%
+2.7%

Profit before taxation (statutory) (3)
£17.8m
£6.1m

Adjusted earnings per share (2)
6.2p
6.3p
-0.8%

Dividend per share
2.6p
2.4p
+8.3%

Return on capital (4)
16.8%
17.2%
-40bps

· Strong second half performance resulted in another year of sales and profit growth

· Further investments made to enhance the Group's strategic positioning and growth prospects

· Dividend increase of 8% reflecting the Board's confidence in the coming year

(1) Constant currency is calculated by retranslating comparative period results at current period exchange rates

(2) Profit before tax, amortisation and non-recurring items

(3) After amortisation and non-recurring items

(4) Last 12 months operating profit as a percentage of operating capital employed

Martin Flower, Chairman, said: "These are good results during a period of continued macroeconomic challenge in Europe and poor weather in the first half of the year, providing further evidence of the quality and resilience of our business and its growth prospects. The Group has continued to make investments to drive future growth: extending its product range in attractive segments with the acquisition of Texiplast, and increasing its geographic reach. These investments are already contributing to the current year and further underpin the Board's confidence in a continuation of cash generative, profitable growth."

[masurenguy] 03/2/2014 08:49

Results due tomorrow. Their last trading update just over 6 weeks ago contained the following statement.

"Sales for the second half of the year were 5% ahead of last year on a like-for-like constant currency basis, and 6% ahead including an in line contribution of £3m from Texiplast, our recent acquisition in Slovakia. The much improved second half performance has resulted in full year constant currency sales growth of circa 3%. Full year pre-tax profits are expected to be within the range of market expectations."

It will be interesting to see what they have actually achieved in pretax profit based upon this incease in sales. I'm looking for around 5%, which would produce circa £25.8m with post tax at £19.1m and an eps of around 6p. Net debt reduced to perhaps around £62m plus a final dividend of 1.7p - or 2.55p for the year - providing an annual yield of around 3%.

[felix99] 11/12/2013 09:48

I have held these for a bit. Chart looking really rosy and will break long standing highs if it can clear 78.5 on a closing basis

[123ct] 11/12/2013 09:30

Results due early Feb, the share always seems to run up in December and Jan then fall away for several months, lets hope the pattern maintains, I like this company and have clever products that businesses want, as diverse as use in railway line support through to the NFL in America. This board nice and quiet so no ramping going on so I hope the results reflect the IMS released in October.

[masurenguy] 06/12/2013 11:00

Took an opening position here this morning. I think that the acquisition of Texiplast is a very good move and the recent placing to fund it has not impacted the balance sheet. If markets continue to recover next year - which I believe they will - then LWB should be well placed to benefit from this especially in Europe where they generate over 60% of their sales. Current PER of circa 11 is undemanding and a prospective dividend of around 3.4% (assuming 2.55p this year) is an added attraction.

[barlick] 18/10/2013 17:17

Thanks guys

This board has been pretty dead since I bought but I think I will hold for a while. My problem is that I have no seasonal knowledge of how this is traded or what the drivers are.

Will learn quick I guess.

GLA

[metier9] 18/10/2013 04:05

We need to wait for the civil engineering to pick up. Their acquisitions in Eastern Europe also hold promise for when those countries join the EU and need massive spending on infrastructure. Just look at poland as an example.

I think if the volume picked up and we broke through 75 in a convincing manner we should be alright.

[felix99] 17/10/2013 21:24

Nice yield. Sit tight and be patient and collect the divis. Capital will follow

[barlick] 17/10/2013 17:29

Decent update with zero Wow!

Not sure how to play this - holding 15% upside - but not sure where we go from here.

Any ideas?

[metier9] 18/9/2013 04:46

Im obviously going to be waiting a while for the 70.5 mid price again. I originally got in at 65.38 & 70.75. Will have to wait for the next results to see the 'market financial split rating'.

[barlick] 16/9/2013 17:26

Presumably, after the acquisition we are looking at a bigger company & the charts will be a bit askew?

As the buy was relatively painless I think the market is looking again at the valuation & bearing in mind the 30/70 or 40/60 financials split do not want to be last one in?

Certainly glad I wasn't!

GLA

[floorlord] 15/9/2013 11:00

Indeed Metier9 and I believe they did buy into the placing. The placing and director purchases announcements were made on the same day, which would at least hint at that. Nevertheless, they've backed their actions from their own pockets. That shows a commitment to the business and a belief in their own strategy.

I think there's enough meat for the share price to tick up a bit further so I'll cross my fingers for a dip so you can top up.

More importantly, management have given me confidence to expect a solid performance to be shown in the finals announcement next February. That's when the wider market is likely to start believing in this team.

Or so my own crystal ball says. That has been wrong before. DYOR and all that.

[metier9] 15/9/2013 04:09

I was hesitating to top up at 70.5 mid price which I regret now! Will wait to see if there is any profit taking on mon/tues and reassess the situation. The 69p/share is the same price as the placing which is an interesting coincidence.

[floorlord] 14/9/2013 13:31

FT Weekend (Money section, P25, Directors' Deals) shows 5 LWB directors having bought 212,102 ordinary shares for £146,350 between them, i.e. just about 69p/share, on 6 Sept. My glance at the RNS on the day led me to read them as accepting bonus shares, not as exercising options or buying on their own account. No wonder the share price has been heading north. Should be more action to come.

[floorlord] 12/9/2013 12:05

xlairways I'm puzzled. Are you referring to Ionian Estates? Does that have any relevance to this thread or just a slip of the thumbs?

Sorry to interrupt folks. Following this thread but nothing to add as you seem to have it covered.

[felix99] 12/9/2013 08:22

I buy in for profit personally - not to bothered if that's from yield or share price gain :-)

[bscuit] 12/9/2013 02:30

I bought ion recently at 67p for yield.

[metier9] 10/9/2013 03:48

thanks for the answer Felix,

looks like LWB is acquiring a few bolt-ons at nice prices.

[markyjacob123] 06/9/2013 10:24

Good acquisition done at a tiny discount which indicates the shares are cheap at current levels.

Pleased to see current trading strong as well:

"With the improvement in sales and the benefit of more favourable exchange rates, the Board remains confident that the second half profits will be well ahead of last year."

[major clanger] 06/9/2013 09:19

Broker rec:

N+1 Singer - Upgrade to Buy from Hold - TP to 78p from 69p [upgrade]

More details from the note here:

[felix99] 06/9/2013 07:33

It's a placing so existing shareholders cannot buy. If it is a rights issue then shareholders get to buy more .

Well if it is heavily subscribed you won't see 69p as price will stay where it is or rise . If its not then price may drift slightly and you will get to buy at near enough 69/70 p.

[metier9] 06/9/2013 07:19

The RNS announcement today about the acquisition and placing of shares. Do we qualify as qualified investors for the share placing? If so, how do we take up the placing offer? (my first placing).

[markyjacob123] 05/9/2013 11:02

I would have to disagree, I think we're ready for the next leg up. It's a very volatile stock; big swings up and down are common.

Positive news on the yarns disposal or good trading would be spur this on.