Low & Bonar (LWB)

Business description

Low & Bonar produces specialist performance materials for a variety of end-markets by combining polymers with specialty additives and pigments. It now reports as four global business units.

Stock data

Market cap.£280.2m
Last close85.00p
High / Low (52 weeks)89.8p / 60.0p
Stock market listingLN
Forecast net debt (£m)110.4
Forecast gearing ratio (%)51
TeamIndustrials
SectorBasic Industries

Price performance

%1m3m12m
Actual4.9(4.5)34.4
Relative *4.6(3.8)25.3

* % Relative to local index

Other companies in sector Show

Company news

Good results for Low & Bonar PLC

Tue, 11 Jul 2017 09:58:02 GMT

Why Low & Bonar plc Could Thrash Returns From HSBC Holdings plc And Rio Tinto plc

Fri, 17 Jul 2015 11:37:30 GMT

Worst over for high-yielding Low & Bonar?

Tue, 03 Feb 2015 15:02:13 GMT

Why Low & Bonar plc's Shares Collapsed Today

Fri, 05 Sep 2014 09:22:30 GMT

Low & Bonar reports revenue growth in first half year of 2016

Thu, 07 Jul 2016 17:51:57 GMT

Y/E Nov Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 362.1 46.0 27.4 5.8 14.7 8.2
2016A 402.2 52.8 29.2 6.0 14.2 5.5
2017E 440.0 59.4 35.4 7.2 11.8 4.4
2018E 440.9 64.2 39.2 8.0 10.6 N/A

Last updated on 25/07/2017

Investment summary

First half results showed a good increase compared to the prior period with reported normalised PBT and normalised EPS both up by more than 20% (10%+ on a constant currency basis). Strong volume growth in Building & Industrial and improved operating efficiencies in Coated Technical Textiles were the primary drivers of underlying performance. Civil Engineering sector prospects appear to be improving, although H1 was adversely affected by project timing delays. This also had an impact on net debt, amplifying the seasonal working capital outflow, leaving period end net borrowings at £149m. The 5% interim dividend increase was as expected.

Last updated on 03/08/2017

Industry outlook

Key strategic medium-term financial targets are currently for 10% operating margins and 12%+ return on capital employed. Organic group revenue growth may be supplemented by M&A. The onus is clearly on territories outside Europe to provide the growth engine.

Last updated on 03/08/2017

Key management

Martin Flower, Chairman
Brett Simpson, CEO
Mike Holt, FD
Simon Dray, CFO

Company address

One Connaught Place,
London
W2 2ET
United Kingdom
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