Low & Bonar swings to 1H loss on higher material costs, restructure charges
StockMarketWire.com - Performance materials group Low & Bonar swung to a first-half loss, owing to higher raw material costs, restructure charges and production disruptions.
Pre-tax losses for the six months through May amounted to £13.2m, compared to a profits of £10.8m on-year.
Revenue grew 3.0% to £206.2m, but underlying operating margins slumped to 4.4%, down from 7.4%.
The company held its interim dividend steady at 1.05p per share.
'This is a period of significant transformation for the group, with various cost reduction initiatives and organisational changes being embedded,' Low & Bonar said.
'We are confident that, despite a challenging start to the year, these actions, together with an expected softening in raw material prices and the delayed impact of passing through previous raw material price rises, will underpin a much stronger second half to the current year.'
At 2:54pm: (LON:LWB) Low Bonar PLC share price was -2.9p at 45p
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