BULL POINTS:
â– Strong demand from emerging markets
â– Niche products mean pricing power
â– Solid finances
â– Yarn business returns to profitability
BEAR POINTS:
â– Rising raw material costs
â– UK and US markets remains weak
IC TIP:
Buy
at
65p
Low & Bonar is still emerging from a restructuring that started four years ago, but the benefits are becoming clear. And much of the improvement has come through a dose of self help, whereby costs have been cut, unprofitable parts of the group re-structured and borrowings reduced.