Meanbugger
13 Apr 2018
Trading Statement Fortunately I wasn't tempted to buy LWB as a recovery stock. I warned at the time they bought the Slovak business off a Czech company that it was madness. EU funded infrastructure projects in Poland were coming to an end with no sign of replacement yet still LWB paid good money for the business. Then they spent money upgrading the factory. Now they are spending money closing it down. As business acquisitions go this was almost as bad as the Australians buying Homebase.Now we have a trading statement based on a number of expected headwinds but don't worry about about the full year as the company will win it back in the second half. Yet they give no reason for why the second half should be so much better. I would assume the second half will also be affected by pricing and inventory issues and that they'll warn in a few months time about the full year outcome. that point they might start having covenant issues with their bank loans. Either way I can see the need to raise equity to repair the balance sheet. The current management team is still repairing the damage done by their predecessors however I see no reason to hold this share. The dividend might need re-basing as part of the moves to strengthen the balance sheet.Sorry for any shareholders but I'd bail out before things get worse. Today's trading update is just the start perhaps of some really bad news.
Iclaude
01 Mar 2018
Results posted 26/2 Despite results posted on 26/2 and a rise in dividend to 3.05p for the year, hardly a comment on this bb. Well, for those interested the final dividend will remain at 2p for those registered on 23/3 and payable on 19/4. The chairman anticipates that the improvements at the Changzhou site will be completed shortly and that the extra £26m invested there will prove of further benefit to the company. Despite bad weather in The US at the earlier part of the year the company has managed to increase its profit before tax to £30.7m. Peel Hunt reiterate their forecast to £1/share.
Thedarkkn1ght
20 Dec 2017
Peel Hunt BUY 100p 20-12-17 Low & Bonar PLC LWB Peel Hunt Buy 54.38 67.75 100.00 100.00 Reiterates
Thedarkkn1ght
20 Dec 2017
Re: P/E 8; Dividend 6% Net assets of £206M at H1 actually with an equity ratio of 1.8More than solid.
The Darkyhorse
20 Dec 2017
Re: P/E 8; Dividend 6% Have been watching LWB for a while with view of potential personal re-investment."On the other hand even with reduced PBT expectation of 30-31m, say PAT of ~23-24m, the current market cap of ~180m looks quite low (at 54.5-55p).""and net debt, as at 30 November 2017, of approximately £138m.".........GULP!Falling knife?I will stay away now!
Thedarkkn1ght
20 Dec 2017
P/E 8; Dividend 6% Profit £29M last year; £30-£31M still expected this year and remember this was partly down to US hurricanes i.e. one off events.Dividend TWICE covered by earnings.Surely a strong takeover candidate now.Trading below NAV.
nk1999
20 Dec 2017
Re: Times- Tempus Certainly potential for kitchen sink ad 3rd profit warning, RAC.On the other hand even with reduced PBT expectation of 30-31m, say PAT of ~23-24m, the current market cap of ~180m looks quite low (at 54.5-55p).So, hopefully, longer term we can see recovery here?I am holding (although not buying any more just yet, but may be tempted soon)nk
RAConnell
20 Dec 2017
Re: Times- Tempus Sold out at a somewhat modest loss. This is the 2nd profit warning with 3rd no doubt at end of January when L&B kitchen sinks the results so I'll avoid further losses.
idontwanttolose
20 Dec 2017
Re: Times- Tempus NK1999 looks like you were right with your advice "AVOID" The SP is down 22% to 53p after this mornings news!!Resignation of Group Chief Executive and appointment of Interim Group Chief ExecutiveBoard ChangeThe Board of Low & Bonar announces that Brett Simpson, who has been with the Group since September 2014, has resigned from his position as Group Chief Executive. Brett will step down from the Board immediately but will remain an employee until 30 April 2018 when he leaves the Company to join Fenner PLC.Trudy Schoolenberg, currently a non-executive Director of the Company, has been appointed as Interim Group Chief Executive with immediate effect pending the appointment of a permanent Chief Executive. Trudy has been a non-executive Director of Low & Bonar for four years and has extensive executive experience in the chemical, technology and petrochemical sectors with significant engineering and product development expertise from over 20 years' spent at Royal Dutch Shell. Trudy is also a non-executive director at Spirax-Sarco Engineering plc. Trudy will lead the Group on a day to day basis, in conjunction with Philip de Klerk, Group Chief Financial Officer.Trading updateWhilst market conditions for the Group as a whole have remained stable since the trading update on 16 October 2017, full year outturn will reflect a weaker than expected final quarter in the Coated Technical Textile business unit as a result of an adverse product mix and sales timing. As a result, the Board expects to report full year adjusted profit before tax (before amortisation and non-recurring items) for the year ended 30 November 2017 of between £30m and £31m and net debt, as at 30 November 2017, of approximately £138m. Low & Bonar will announce its final results on 31 January 2018.
gisajob
21 Oct 2017
Re: Times- Tempus I've just re-read this article alongside the Tempus buy tip from April."Bipolar" springs to mind.
nk1999
21 Oct 2017
Times- Tempus On 16/10:"The 16 per cent fall in the Low & Bonar share price looks like a classic overreaction to some admittedly poor news. There are three main aspects to the warning issued by the company, which makes a range of specialist materials, including meshes used in civil engineering, regarding its results to the end of November.The first is that the civil engineering side is not seeing the expected switch from commoditised trading to specialist projects that offer better margins. This has meant that inventory levels have remained higher than expected, while the business will make a loss this year rather than the expected small profit.Linked to this are rises in raw materials such as plastics, in part due to loss of production caused by hurricanes in the United States. The company has not been able to pass on these costs in full given the difficult state of the civil engineering market.Those higher inventory levels mean that borrowings, which had been expected to end the year at £115 million to £120 million, will now come in at £130 million, a bit high for a company with a market capitalisation of about £200 million at last night’s close.The civil engineering side is under review and a disposal would reduce debt if a buyer could be found. Several peripheral businesses have already been sold. The shares, after a 12½p fall to 67¼p, sell on just below ten times earnings, based on estimates revised downwards, but the market will require more clarity for any recovery.My advice AvoidWhy The market will take time to recover trust"
Blanketstacker
17 Oct 2017
Berenberg... ...has cut its target price to 105, from 112, but maintained the 'buy' recommendation. Seems oversold
ER = 9PEG = 0.3PtB = 1.1Yield = c7% (covered x2)The downside is a large pension deficit and relatively high gearing (55%).The spread has widened today, but you can currently buy sub 67. The poorly performing division will probably be sold off, and in any case was a minimal contributor to profits last time around. A much more reasonable price seems to me to be in the 80s.
Thedarkkn1ght
16 Oct 2017
P/E 10; Dividend 5% After the 20% drop today
nk1999
23 Apr 2017
Telegraph- Questor From Thursday:"The Questor Column:Misunderstood and undervalued, buy this British textile specialist with global reach: Materials manufacturer Low & Bonar is a company the market seems not to know what to make of – and the shares look cheap as a result. Profits have recovered strongly since the warning but Low & Bonar’s share price has yet to match the previous peak. Low & Bonar is poised to deliver significant earnings growth, alongside an attractive and growing dividend. A few fund managers appear alert to its prospects. Simon Moon, manager of the Unicorn U.K. Smaller Companies portfolio is one. Low & Bonar is a top 10 holding in Unicorn U.K. Smaller Companies, and held in Mr. Moon’s Unicorn U.K. Income and Acorn Income funds too. Mr. Moon reckons the company’s current price-to-earnings ratio of 10 is at around a 50% discount to its peer group. One sign that should boost investor confidence is a significant and growing dividend. It currently yields around 4%, and the dividend has been increased consistently for several years including an 8% increase in 2016. In an upbeat statement, last week Low & Bonar reaffirmed its confidence in the year ahead and flagged no operational issues. it named Philip de Klerk from Flybe to replace its outgoing finance Director Mike Holt this autumn, which Mr. Moon described as a “decent appointment”. But it is not all clear water. Some customers need reassurance after a recent glitch in coated textile production, for instance. In January, the company said this issue was “now largely resolved”. Around 60% of Low & Bonar’s business is in Europe, 25% in the U.S. and 5% in the U.K., with the rest in Asia and the Middle East. Questor says ‘Buy’."
Laraghs fund
19 Apr 2017
Re: Berenberg And also tipped by The Telegraph this morning, although they do admit to tipping it in July 2014 at virtually the same price, so not much of a recommendation !
