London-listed supplies maker Low & Bonar stated on Monday its chief govt could be leaving because it warned the US-China commerce conflict was taking a toll on its outcomes and stated it wanted to expedite its turnround efforts.
Shares within the small-cap group — which makes polymer-based supplies utilized in sectors starting from housebuilding and carmaking to roads and drains — plummeted 26 per cent on Monday morning, after it stated the dispute between the world’s two greatest economies had “created vital uncertainty within the Chinese language market”.
Consequently, the group stated efficiency through the first half of the 12 months could be “materially behind that of the prior half 12 months”. It didn’t give specifics, however income within the six months to Could 2018 was £206.2m and it made a pre-tax lack of £13.2m.
Low & Bonar additionally stated chief govt Philip de Klerk would go away the corporate on July 1, citing a must “speed up supply of the transformation programme initiated in late 2018”. Daniel Dayan, the present chairman, will tackle an govt chairman position.
The corporate stated it will not begin a seek for a brand new chief govt instantly, however that the state of affairs could be reviewed later within the 12 months.
Low & Bonar, which has a present market capitalisation of round £76m, has seen its share worth tumble nearly 90 per cent since mid-2017 and is pursuing a turnround plan in a bid to simplify its portfolio. It stated “progress is being made, however it’s taking longer than anticipated to resolve a number of the legacy points throughout a difficult interval”.
The group warned in April that after a sluggish first quarter, outcomes could be weighted in the direction of the second half. However on Monday it stated the speed of enchancment had been slower than anticipated, blaming weak spot in a few of its finish markets and the sluggish restoration of buyer confidence in its coated technical textiles enterprise.
Shares within the group have been down 24 per cent by mid-morning, making it the worst performer on the FTSE All-Share index.