Low & Bonar PLC. Interim Results 2004

Transcription

1 Low & Bonar PLC Interim Results 2004

2 Key Points Third consecutive six-month period of progress Pre exceptional operating profit up 20% to 6.2m Dividend increased to 1.60p from 1.50p Ungeared balance sheet, 5.8m of net cash Floors wins major contracts and Tessera fully integrated Artificial grass yarn continued growth, Fabrics progressing well Plastics mixed performance

3 Key Financials 2004 H H1 Sales 94.7m 89.4m Operating Profit (Pre exceptional) PBT (Pre exceptional and amortisation) EPS (Pre exceptional) 6.2m 5.2m 6.1m 5.1m 3.91p 3.28p Dividend 1.60p 1.50p

4 Profit & Loss Account 2004 H H1 Operating Profit Interest (0.3) (0.3) Exceptional Items (0.2) (0.6) Profit before Tax Tax (1.9) (1.5) Profit after Tax

5 Sales Bridge H Sales 89.4 Acquisitions 4.9 Growth 1.1 Forex (0.7) H Sales 94.7

6 Profit Bridge Operating Profit pre exceptional H Increase in Divisional Profit 0.8 Increase in Central costs (0.3) Acquisitions 0.6 Forex (0.1) Operating Profit pre exceptional H

7 Cash Flow Operating Profit Depreciation & Amortisation Capital Expenditure Working Capital Operating Cash Flow Exceptional Item Interest and Tax Dividends Acquisition Asset Disposals Net Cash Flow 2004 H (3.0) (5.8) 1.2 (0.2) (2.6) (2.7) (3.8) 2003 H (2.1) (3.8) 2.8 (0.5) (1.1) (1.5) (18.3) 0.4 (18.2)

8 Divisional Reviews

9 Specialist Materials Floors Sales existing Carpet tiles - Tessera Operating Profit existing Carpet tiles - Tessera 2004 H H

10 Floors Division Products

11 Floors UK continues to be the strongest performing region (original and acquisition) with our export business also doing well Benelux and Germany continue to be the most depressed markets Flotex (contract not residential) overall trading well across all territories Nuway, our rigid entrance systems, held back by UK food retail market slowing Coral, our carpet entrance systems, facing continued price competition in its traditional markets Chocflex, our French vinyl product, continues its strong performance MoD a positive factor going forward

12 Specialist Materials Yarns & Fabrics 2004 H H1 Sales Operating Profit

13 Yarns & Fabrics Division Products

14 Yarns & Fabrics Profit doubles with excellent progress made in Belgian fabrics business Volume growth in grass yarns (Dundee) >20% offsets margin erosion from US$ All regions for grass yarns show good growth with China especially strong New capacity coming on stream in Dundee Fabrics business has volumes increasing >10% with strength especially in geotextiles and industrial fabrics Screens are flat as steel prices impact demand for our customers Cost efficiency programmes aid profit growth Capital expenditure 4m for additional non-woven geotextile capacity in Belgium approved for late 2004/early 2005

15 Plastics 2004 H H1 Sales Operating Profit

16 Plastics Division Products

17 Plastics North Europe continues to make steady progress Southern Europe: France continues recovery whilst Spain marginally loss making North America has suffered with raw material prices increasing. Overhead and pricing initiatives a priority in H2

18 H2 Floors has experienced some slowdown in UK contract market but MoD has commenced In grass yarns the growth continues In Fabrics raw material prices increasing slightly and some caution entering the sectors which were extremely buoyant in H1 In Plastics new Divisional MD is undertaking review to extract maximum potential

19 Summary Markets are demanding but: We continue to invest in product development and sales and marketing initiatives Actions continue on costs/efficiencies, especially in Plastics and Belgian Fabrics Management teams stable, especially in Floors and Yarns & Fabrics Control of cash and focus on ROCE continues Acquisitions will continue to be looked at in Floors and Yarns & Fabrics Must-do s Financials on plan and growing year-on-year French Plastics stable but more work to be done to grow the business Plastics overall will benefit from focus of new MD Floors to embed MoD contract