Low & Bonar spins profit higher

8th Feb 2011 08:00

Industrial fabric maker Low & Bonar rolled out an 18% rise in full year pre-tax profit, increased its dividend and said it is confident of making further progress in 2011.The Dundee based textile firm said profit before tax rose to £18.6m for the year ended 30 November 2010 from £15.8m the year before. Revenue increased 13% to £344.6m. "This significant sales increase was driven by a partial recovery in many of the group's end markets and was augmented by organic growth from innovation and our increasing exposure to emerging markets," the group said. Operating margins also improved to 7.5% from 7.3% in 2009 despite tough raw material markets.Net debt has been reduced to £62m from £67.4m in 2009.Low & Bonar added that it is confident profitability will be restored at is loss-making Yarns business in 2011 after it commissioned a new manufacturing facility for artificial grass yarns in Abu Dhabi. "We have also accelerated efforts to access higher growth emerging markets," the group said in a statement.Full year dividend has been increased to 1.6p from 0.8p previously.