Sales stabilising at Low & Bonar

13th Jul 2009 08:59

Sales in the first half of of its financial year have been lower than expected at performance materials group Low & Bonar, though there has been a pick-up in activity in the second quarter.The company, which is traditionally more profitable in the second half of the year, still expects to meet full-year profit expectations.The company made a loss before tax of £5.8m in the six months to the end of May after taking a £10.9m hit for amortisation and non-recurring items. At the interim stage last year the company made a pre-tax profit of £3m after exceptional charges of £2.9m.Revenue eased to £139.5m from £157.5m a year earlier, but the company said sales have now stabilised in most of its end markets. The board is budgeting for a slight recovery in year-on-year sales in the second half of the year.Net debt at the end of May was down to £98.7m from £104.5m at the end of November 2008. The company is not paying an interim dividend.