Floor and fabric supplier increases profit by 19% despite increase in costs of raw materials.
Materials supplier Low & Bonar has increased profits by 19% to 拢12m for the year ended 30 November 2004. Turnover also increased by 5% to 拢201.7m and dividends rose 7% to 4.50p.
The company鈥檚 floors division reported sales growth for the first time in five years and increased turnover by 10% to 拢83.1m. The yarns and fabrics arm, which makes carpet backing and fibres for cementitious products, grew operating profit by over 50%.
Chairman Duncan Clegg said: 鈥淚 am pleased to report that 2004 continued the Group鈥檚 progress started in 2003, particularly against a demanding backdrop of escalating raw material prices and subdued markets.鈥�
鈥淟ooking ahead, though we expect the first half to be impacted by growth-related investments and continued high raw material pricing, our expectations are for continued progress in 2005.鈥�
Clegg said that progress would be driven by continued organic sales growth and improved productivity as well as acquisitions in the Floros and Yarns & Fabrics Divisions.
