Shares in Low & Bonar surged early yesterday as the performance materials group revealed a rise in underlying profits and announced the appointment of a new chief executive.
The firm has been led for the past month by non-executive director Trudy Schoolenberg following the resignation of group CEO Brett Simpson.
It has now been confirmed that group chief financial officer Philip de Klerk – a former Ineos and Flybe executive who joined Low & Bonar in October – will take the top job on a permanent basis from March 1.
Ms Schoolenberg will continue in the role meantime and, after completing a handover to Mr de Klerk, will then spend a period leading a restructure of the group’s global supply chain.
The changes came as Low & Bonar – which was founded in Dundee and continues to employ 48 staff at Caldrum Works, its city carpet backing manufacturing site – revealed its unaudited results for the year to November 30.
Group-wide revenues were 11.6% ahead at £446.5 million, while underlying pre-tax profits increased by 5.1% at £30.7m.
The company also increased the full year dividend from 3p to 3.05p.
However, on a statutory basis, Low & Bonar posted a £19.7m loss for the year, largely due to a £31.6m asset and goodwill impairment in its underperforming civil engineering (CE) division.
The unit saw profits almost wiped out in the year and the decision has now been taken to close a loss-making weaving plant in Slovakia and transfer some operations to China.
Further measures will be announced in the summer in the hope of improving CE’s long-term outlook.
The group also reported a lower than anticipated performance from its Coated Technical Textiles (CTT) unit but said its Building and Industrial (B&A) and Interiors and Transportation (I&T) divisions – the latter of which encompasses the Dundee operation – had performed well with both achieving profit growth in the year.
Mr de Klerk said the Dundee site was performing “really, really well” and making a positive revenue contribution to the wider business.
Chairman Martin Flower said the group was “well positioned to realise opportunities for profitable growth” and was confident of making progress during 2018.
Shares closed 6.4p up at 60.4p.
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