Specialist materials group Low & Bonar (LWB) is due to report 10 per cent underlying sales growth when it releases half-year figures on Thursday. Most of the growth is coming from sales related to civil engineering and building products, as well as the leisure sector. Demand for automotive and flooring products has been more muted.
The group's second-half performance is expected to be stronger still, as it will include the acquisition of Slovakian geosynthetics specialist Texiplast. After three years of both organic and acquisitive investment, Numis Securities reckons there is scope for double-digit earnings growth in 2015 and 2016, underpinned by the improving economic climate. The broker expects full-year pre-tax profit of £28.6m in 2014, giving EPS of 6.2p, rising to £34m and 7.3p in 2015 (from £26.1m and 6.1p in 2013).
