Low & Bonar, the international technical textile and contract flooring manufacturer is issuing a pre-close trading update prior to the announcement of its interim results. The Group will announce its interim results for the 6 months ending 31 May 2008 on 14 July 2008.
The Group has continued to trade in line with our expectations, supported by our broad product range and geographic spread, and the increased rate of new product introductions.
Technical Textiles has traded well and has benefited from a first half contribution from MTX, the technical coated fabrics business, acquired in January this year. MTX is trading slightly ahead of our expectations, with a record sales month in April, and the integration process remains firmly on track. We have also seen further improvements in the financial performance of the Technical Yarns business.
Raw material pricing, as expected, despite high oil prices, has remained at acceptable levels with one key material falling in price for the last four months.
Contract flooring has also continued to trade satisfactorily, benefiting from a first time contribution from Westbond, the fusion bonded carpet tile business, acquired in January.
Across the Group, the impact of the strength of the Euro will have a mildly beneficial impact on earnings in the first half, and, provided this exchange rate remains at current levels, also for the full year. Underlying cash flows in local currency
are as expected but the same exchange effect will also increase levels of net debt on translation.
The breadth of product range and geographic diversity that supported both Divisions during the first half is expected to continue to be beneficial, and gives us confidence to expect continued progress for the current year and beyond.
A City Business Briefing was held for Analysts and Shareholders on Monday 2 June to provide this audience with a greater understanding of the ways in which Low & Bonar is adding value through innovation and design. No new or material information relating to the Group's trading or performance was0 disclosed during this event.
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Source @ Fibre2fashion.com