Low & Bonar Annual Revenue Falls And Loss Balloons

(Alliance News) - Building materials company Low & Bonar PLC on Friday reported a double-digit ...

Alliance News 27 March, 2020 | 7:00PM
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(Alliance News) - Building materials company Low & Bonar PLC on Friday reported a double-digit revenue slump and a widened loss during a "difficult" year.

Shares in the company closed 25% lower at 6.20 pence each in London on Friday.

In the 12 months to November 30, revenue was 12% lower at GBP317.3 million from GBP361.6 million. Low & Bonar's pretax loss widened to GBP61.2 million from GBP39.2 million.

The firm opted not to make a payout, having paid a 1.42 pence dividend in the year prior.

The company earlier on Friday said it has amended facilities with its lenders so that financial covenants, which would have been tested at the end of May, will be waived until November 30, 2020.

Earlier in March, it warned it will not meet financial covenants were they to be tested at the end of May.

London-based Low & Bonar agreed to a GBP107.0 million takeover offer by FV Beteiligungs GmbH, a subsidiary of German diversified group of companies Freudenberg SE.

Low & Bonar said: "As previously reported, and reflecting the very difficult trading conditions experienced through 2019, the group's financial position is extremely challenged. Having determined that the group would be very unlikely to be able to comply with its temporarily suspended banking covenants, were these to be reinstated in circumstances where the offer lapsed, the group reached agreement with its lenders on March 27 to make further amendments to its financing facilities."

The company said that trading in the early part of financial 2020 has been "challenging".

"The Covid-19 outbreak is creating enormous uncertainty in the short-term both operationally and as regards the level of demand for our products. We remain focused on seeking to deliver the offer from FVB as approved by shareholders, and on developing contingency plans aiming to preserve the stability of the group's businesses in the event that the offer does not complete," Low & Bonar said.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Low & Bonar PLC

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