Low & Bonar plc announced interim management statement for the period since May 31, 2012. The group's trading performance from its key businesses has continued as expected, with sales, profits and margins remaining comfortably ahead of last year on a constant currency basis. Following a strong first half, growth in Civil Engineering and Building Products markets has slowed as European construction customers have become more cautious. Sales growth within Flooring, Industrial and Transport segments has been satisfactory and consistent with the first half of the year. The performance of the Yarns business has been affected by a further reduction in discretionary public funding for artificial sports pitches. As a result, sales, which account for 6% of the Group, have again been materially lower than the prior year. Despite the restructuring of the business, which significantly reduced the cost base and returned Yarns to profitability last year, the recent deterioration in market conditions will result in the business making a loss this year. Management is currently evaluating options to address this situation.

The company also reported that overall, the group continues to expect full year profits to be ahead of last year, driven by performance and ongoing investment in its key businesses; however, owing to the losses in Yarns, profits are expected to be slightly below current market expectations. Year-end net debt is expected to be at a similar level to last year, in line with guidance.