Low & Bonar profit pummelled as weather interrupts progress

4th Jul 2013 10:53

Industrial fabric maker Low & Bonar reported a sharp decline in half year pre-tax profit as 'abnormal weather across Europe temporarily interrupted progress' but it remains confident of meeting full year expectations as it enters a stronger second half. The Dundee based group which makes monofilament and fibrillated synthetic yarns used in the construction of artificial grass for sports, said pre-tax profit fell to £4.0m for the six months ended May 31st 2013 from £6.3m a year earlier. The group recorded revenue of £184.1m during the period from £183.9m a year earlier. Operating profit fell to £7.1m from £9.3m while basic earnings per share fell to 1.74p from 2.40p. "Since the middle of April sales have improved and the group has entered its traditionally stronger second half of the year with good momentum.""Given capacity constraints in the supply chain, it is unlikely that all of the weather-related losses in the first half will be recovered in the second half of the year; however, with internal growth initiatives coming through and with the benefit of more favourable exchange rates being felt, the group is confident that full year results will be in-line with expectations," the group said. The group has announced a dividend per share of 0.85p from 0.80p. CJ