Plastics and packaging group Low & Bonar has revealed a £100 million sterling fund for acquisitions, after confirming the currency's strength and high material costs had slashed half-year profits.
Low & Bonar said pre-tax profit before exceptional items for the six months to May 31st fell 57 per cent to £4 million. The group had issued a profit warning in April.
The British-based company said although overall trading was in line with expectations, underlying demand in North America remained uncertain. Its interim dividend was maintained at 2.50 pence per share.
Low & Bonar started a strategic review last year to boost its ailing financial performance, and sold off operations that it felt had no growth potential.
Following the review, Low & Bonar's flooring business became one of its main operations. The flooring unit accounted for about a third of sales of £86 million during the half-year.
Low & Bonar's disposal programme led to a fall in total group turnover for the full year ending November 2000.