Low & Bonar produces specialist performance materials for a variety of end markets by combining polymers with specialty additives and pigments. From FY19 Building & Industrial and Interiors & Transportation will be combined as the Colbond division.
H119 results included a small positive operating profit contribution, marginal loss at the PBT level and a passed interim dividend. Trading conditions were as previously flagged and both ongoing divisions experienced the effects of lower volumes and some manufacturing efficiencies. At the end of H119, net debt was £99m; the announced disposals of both Civil Engineering businesses for an aggregate consideration of €23.5m to be received during H2 is a significant step in reducing leverage. On 20 September, a recommended cash offer of 15.5p per share was made for the company by a subsidiary of Freudenberg SE. We are required to withdraw our estimates for the duration of this offer period.
For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Low & Bonar. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriate) in accordance with the requirements of the Code. Consequently, we have removed our estimates until the offer period ends.