Scotland´s Low & Bonar (GB-Dundee DD1 9JA; www.lowandbonar.com), has acquired PP fibres specialist LCM Construction Products (GB-Beverley HU17 0HQ; www.adfil.co.uk) for GBP 12.8m (EUR 18.7m). With sales of GBP 9.6m in 2003, LCM manufactures PP fibres for concrete reinforcement under the brand name “Adfil”. The company will be integrated into Low & Bonar´s “Yarns & Fabrics” division, one of three almost equal sized units that also include “Floors” and “Plastics” (www.bonarplastics.com). The latter is one of Europe´s largest rotomoulders.

Overall sales of Low & Bonar in financial 2003 (30 November) totalled GBP 192m (EUR 278m), with operating profit of GBP 10.1m. In the first half of financial 2004 (31 May), operating profit was up 30% on the previous year´s period, at GBP 6m.

The plastics segment continues to struggle with low margins. In the first half of financial 2004, sales slipped 9% against 2003 to EUR 30m. Southern Europe and North America were particularly affected. Sales for financial 2003, at GBP 63m (EUR 62.2m), were slightly higher against 2002. Northern and Southern Europe together with North America achieved a profit of GBP 1.2m after a loss of GBP 0.6m in 2002.

The situation remained difficult in France where Anisa, Franca Rotomoulage, Sonabat Chantal and Chantal Eurl, account for most of the Southern European operation. But as CEO Paul Forman explained, this region has “advanced from significant losses to the break-even point.” Thanks especially to the new Polish operation, Northern Europe fared better in 2003. Business in Denmark, The Netherlands and Germany suffered from a slackening economy.

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Annual report 2003 of Low & Bonar as PDF document (917 KB)
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