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Low & Bonar mulls equity raising, cuts dividend as profits fall

Friday, 14th December 2018
Performance materials group Low & Bonar said it was mulling a potential equity raising to cut debt and would lower its dividend, while warning of a steep fall in annual profit.

Tough market and trading conditions had continued during fourth quarter, with higher raw material costs presenting a significant headwind, the company said.

Underlying pre-tax profit for the year through November was expected to fall to around £17m, down from £30.7m on-year.

Debt was expected at £129m, or around 3.3 times Ebitda.

Low & Bonar said it was still actively exploring a sale of its civil engineering business.

However, the board was also exploring other options to reduce net debt, including a potential equity issue.

Revenue on a like-for-like basis was expected to rise 2%

Sales growth on a like for like basis were expected to rise 2% to £432m.

'The board recognises the importance that shareholders place on the group paying a dividend as part of an overall return,' the company said.

'It is also mindful that the group's dividend policy should be consistent with its profitability and cash generation as well as the wider objectives of the business.'

'Subject to finalisation of the full-year accounts, the board expects to recommend payment of a reduced final dividend for the year ended 30 November 2018.'


At 1:27pm: (LON:LWB) Low Bonar PLC share price was -3.5p at 17p



Story provided by StockMarketWire.com

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