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In-line update, estimates unchanged
As it approaches the end of FY15, Low & Bonar (L:LWB) has confirmed that it is trading in line with existing market guidance and, consequently, our estimates are unchanged. We believe that the benefits of organisational change and investment will become increasingly apparent in FY16 and be attractive to growth-oriented investors.
Divisional and group trading patterns unchanged
In a short IMS covering H215 performance to date, Low & Bonar confirmed that trading is in line with existing market expectations for FY15. With minor exceptions, divisional performance is also consistent with H115 results. Coated Technical Textiles (CTT) has traded strongly in Europe throughout the year (although projectbased architectural membranes and specialist container sales have been low) and Interiors & Transport has experienced high demand and plant utilisation levels in all regions served. Civils activity levels have remained ‘muted’, although a combination of management change and cost reduction is likely to be improving returns here. Building & Industrial has experienced some sector strength and no further softness in Europe in H2. Lastly, Sports & Leisure is understood to have seen a good peak selling season. We believe that the key FX cross rates (ie £/€ and £/US$) for the year to date are closely in line with those seen at the H115 stage.
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