Low & Bonar plc (lon:lwb)
Low & Bonar – Who Are They And Why Is Their Share Price Tanking?

Low & Bonar plc Financials

ItemCurrent PeriodPrevious Period
Year20182017
Period
Revenue£432m£447m
Earnings
Adjusted Earnings
EBITDA£22m£33m
Adjusted EBITDA
Statutory Profit(£42m)(£20m)
Adjusted Profit£17m£31m
Total Debt
Net Debt£129m£138m
Low & Bonar plc Share Price
Grade:No grade has been assigned to this company
Title: Low & Bonar – Who Are They And Why Is Their Share Price Tanking?
Company: LWB - Low & Bonar plc
Share Price Then: 10.95p
Author: Ian Smith
Date: Wed 22 May 2019
Comments: Low & Bonar might be said to have a share price that was stable at around 40p-50p peaking occasionally around 80p and now at 11p.

They may not be a company that you know but a quick look at their web site will tell you what they do; Leading the world in performance materials or Our materials help our customers deliver their best performance. We transform what they can achieve, so they can improve how we live.

Now I am beginning to see a problem.

They provide a range of products from moulded pieces of car interiors and exteriors to tents to sprayed concrete parts and building sized printed “posters”.

The latest trading update says debt is expected to be below £110m and the Board expects to meet banking covenants at both the mid and full year.

Ouch, that doesn’t sound too certain, in fact most of the trading update is things are not going too well, not as well as expected etc, but don't worry 2019 is a year of transition, it is surprising how often this word is being used nowadays by companies in many sectors.

The CEO is to leave in July and will not be immediately replaced, instead the non exec chairman will become the executive chairman.

The 2018 results had £431m of revenue, pretty much the same as 2017 and a £42m loss up from a £20m loss.

Add in a £50m fund raising in Feb 2019 and the sale of the civil engineering division I get worried that the company is struggling for direction.

So it seems to be a question of a business in difficulty promising that it can turn it around, do you believe them?
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