Low & Bonar PLC is an international group manufacturing and supplying a wide range of performance products to the global Technical Textiles industry

Transcription

1 Low & Bonar PLC is an international group manufacturing and supplying a wide range of performance products to the global Technical Textiles industry Colback non-woven support layer for filtration media.

2 Low & Bonar Annual Report Highlights Our Financial Performance Resilient financial performance in challenging conditions Revenue from continuing operations 304.8m (2008: 335.2m) Profit before tax* 15.8m (2008: 16.0m) Net debt reduced significantly Strong operating cash flow Cash inflow of 30m from share placing in February 2009 Net debt 67.4m (2008: 104.5m) Operating margins maintained Operating margin* 7.3% (2008: 8.0%) Dividend payments resumed *Continuing operations before tax, amortisation and non-recurring items Operational Highlights Sustained investment in new product development Success in building our market share Progress on geographical expansion Sales outside our heartland up from 14.3% to 20.4% Robust performance from civil engineering business Resilient European market and increased focus on higher growth Middle Eastern and Asian markets Contents 01 Highlights 03 Our Divisions 05 Our Value Chain 07 Our Markets Business Review 08 Strategic 09 Our Strategy 10 Chairman s Statement 12 Performance Review 14 Performance Technical Textiles Division 16 Technical Coated Fabrics Division 18 Financial Review 19 Financial and Non-Financial KPIs 20 Principal Risks and Uncertainties 22 Corporate Social Responsibility 24 Board of Directors Governance 26 Report of the Directors 28 Corporate Governance 33 Directors Report on Remuneration 42 Directors Responsibilities 43 Independent Auditor s Report 44 Consolidated Income Statement 45 Balance Sheets 46 Consolidated Cash Flow Statement 47 Company Cash Flow Statement 48 Statement of Recognised Income and Expense 48 Reconciliation of Changes in Shareholders Equity 50 Significant Accounting Policies 58 Notes to the Accounts 100 Five Year History 101 Advisers and Financial Calendar Business Review Governance

3 02 Low & Bonar Annual Report 2009 Our products are differentiated and deliver high performance solutions that add value to our customers businesses Colbond Enkagrid and Bontec, produced by Bonar Technical Fabrics, installed in Hemmingstedt, Germany.

4 Low & Bonar Annual Report Our Divisions Performance Technical Textiles Our Performance Technical Textiles business services the civil engineering, carpet tile manufacturing, leisure, construction and industrial sectors. Companies: Fabrics Belgium Geo-Tipptex Hungary Bonar Technical Yarns UK and Belgium Colbond Netherlands Yihua Bonar China Bonar Emirates Technical Yarns UAE Manufacturing facilities: Belgium Zele, Lokeren and Ostend Netherlands Arnhem and Emmen UK Dundee Hungary Tiszaújváros USA Asheville, NC China Yizheng (60% owned) UAE Abu Dhabi (75% owned) Performance Technical Textiles Products Woven and non-woven geotextiles Speciality geosynthetics Construction fibres Primary backing for carpet tiles and broadloom Horticulture screens and groundcovers Primary and secondary non-woven backing for car carpets and mats Monofilament and fibrillated artificial grass yarns Commercial and residential building roofing, flooring and drainage components Technical Coated Fabrics Our Technical Coated Fabrics business serves the print, architecture, transport, leisure and industrial sectors. Manufacturing facilities: Germany Hückelhoven and Fulda Czech Republic Lomnice 17 sales offices and warehouses throughout the world Technical Coated Fabrics Products Trailer side curtains and transport protection Printable fabrics for large format advertising Architectural fabrics for permanent and temporary building structures Coated fabrics for storage and containment Coated fabrics for sunshading, boat, pool, camping and sports Business Review Governance

5 04 Low & Bonar Annual Report 2009 Our market positions are founded on our ability to innovate and develop new high performance industrial textiles Our activities begin with the sourcing of widely available polymers and combining these with specialty additives and colours which influence performance, aesthetics, and processing efficiencies. These polymer mixes are extruded to form a variety of yarns which can be sold but more usually are transformed into fabrics using a broad range of technologies, which can then be coated or combined with other materials to form composite products. The products sold are typically components which are important determinants of the performance and/or efficiency of our customers final product or process.

6 Low & Bonar Annual Report Our Value Chain Raw materials Yarn production Customers Business Review Governance Fabric production Coatings and composites

7 06 Low & Bonar Annual Report 2009 Improving our sales growth performance through international expansion into higher growth regions Geographic turnover UK 5.3% 2. Western Europe 59.0% 3. Eastern Europe 6.9% 4. North America 15.3% 5. Asia 9.8% 6. Rest of World 3.7%

8 Low & Bonar Annual Report Our Markets Civil engineering 25% A wide range of products used in major infrastructure projects including road and rail building, land reclamation, and coastal defence. Woven and non-woven geotextiles have a wide range of uses including separation and filtration, membrane protection in landfills and reservoirs, and for erosion control on riverbanks and coastlines. Specialty geosynthetics for erosion control, drainage, soil reinforcement & stabilisation and soil consolidation. Construction fibres used in concrete to reduce shrinkage and settlement cracking and as an alternative to steel mesh reinforcement of concrete. Building products 16% A range of products in niche application areas of the commercial building market. Specialist architectural coated fabrics used as membranes for roofing, in frame supported industrial, event, and sports halls, and marquees for leisure and business events. Roofing and flooring products based on both three-dimensional monofilament mats, composites, and non-wovens with a variety of applications including metal roof ventilation, subsurface drainage for green roofs, hard floor sound control, and reinforcement for waterproof bituminous roofing membranes. Industrial 19% 13% A wide range of products into multiple application areas including screens and groundcover products in the professional horticulture market to improve yield and reduce energy in the production of food, plants, and cut flowers. Printable fabrics for large format prints used in large area outdoor and indoor advertising and smaller fabrics for point of sale displays. Coated fabrics for storage and containment with application areas ranging from waste water, biogas, food, and oil. Transport Products used in both heavy and light vehicle manufacture. Primary and secondary non-woven backings for moulded car carpets and option mats, also used as reinforcement and carrier substrates in hood liners, trunk liners, door panels, package trays and car seats or as support media for cabin air filters. Tarpaulins which are highly resilient and weatherproof and used in transport applications including trailer side curtain manufacture and transport protection in air, road, rail and sea freight. Leisure Business Review Governance Carpet manufacture 12% 15% A range of high-performance primary backings for tufted carpet tiles and broadloom carpets. A diverse range of products for the sports and leisure sector. Monofilament and fibrillated synthetic yarns used in the construction of artificial grass for sports and landscaping applications. Coated fabric product range used in a variety of application areas including sunshading, boat and pool, and camping and sports.