Low & Bonar (LWB)

Low & Bonar LWB Logo

The international performance materials group with leading positions in niche industrial markets.

16-Oct-2017 – 79.75p – £262.9m

Trading Update For The Period Since 31 May 2017 – A little strange this one – YoY the board expects strong progress. The main emphasis seems to be that the board expects to see good overall progress.

This latest update is not particularly upbeat.

31-Jan-2018 – 54p – £183.4m – PER 7.64

Unaudited Results For The 12 Months To End November 2017 – Not exactly inspiring, a few board changes also announced.

Uninspiring update, board changes, huge Net Debt here for me. This remains on my Avoid list.

13-Apr-2018 – 56.3p – £185.7m – PER 8.29

Trading Update For Q1 – Revenue up despite challenging market conditions. Raw material costs have had an impact, price increases should mitigate but not until H2. FY (H2 weighted) expectations unchanged.

Another uninspiring update. With Net Debt well over 50% of current Market Cap this remains on my Avoid list.

11-Jul-2018 – 47.9p – £158.1m – PER 6.98

Interim Results For The 6 Months To End May 2018 – Revenue is up (slightly) but Profits have taken a circa 50% hit. The Interim Dividend has been maintained.

Although the Interim Dividend has been maintained, if it’s a softener, I doubt it’s enough – Remains on my Avoid list.

14-Dec-2018 – 20.5p – £67.7m – PER 3.73

Trading Update For The 12 Months To End November 2018 – Tough market and trading conditions largely unchanged in Q4, raw material headwind, underlying profit before taxation and amortisation to be circa £17m, Net Debt still huge at £129m – Disposal of the Civil Engineering business continues to be actively explored as is a potential equity issue.

I just can’t bring myself to go anywhere near this at present, remains on my Avoid list.

30-Jan-2019 – 18p – £60m – PER 3.6

Final Results For The 12 Months To End November 2018 – There’s enough minus figures here for me to just leave this be for now. There’s also a placing.

Remains on my Avoid list.

1-Apr-2019 – 17p – £117.3m – PER 6

Trading Update (For The Period Since End November 2018) – Not going so well, FY performance to be impacted, no real guidance other than Q1 Revenue is below last year and managements expectations. Every man and his dog to blame.

Remains on my Avoid list for now.

30-Jul-2019 – 10p – £67m – PER 7

Results For The 6 Months To End June 2019 – Revenue down 10% or so, Underlying Loss of -£0.2m, EPS at 0.1p (1.38p), Net Debt down from £140.3m to £99m, there will be no Interim Dividend. Outlook doesn’t seem too rosy either!

Remains firmly on my Avoid list.

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