Low & Bonar is on course for its fifth consecutive half-year year of profitable growth. In a pre-close trading statement ahead of results on 17 July, the specialist performance materials group revealed that sales and profits for the half-year to end May will be comfortably ahead of the last year even though the business was up against some tough comparables.
So despite the tough trading climate and weakness of the euro putting pressure on revenue generated in Europe, analysts still expect pre-tax profits and EPS to grow 8 per cent to £25.3m and 6.2p, respectively, in the 12 months to November 2012. The growth is being driven by a portfolio of niche products - which is important, because it has allowed management to pass on the bulk of rising costs associated with higher raw material prices. Moreover, operating in a niche market with considerable barriers to entry, Low & Bonar looks set to continue picking up new orders.
