Materials maker Low & Bonar, which began life 100 years ago as a Dundee jute weaver, has reported a sharp drop in full-year profits after being hit by a slowdown in demand for artificial grass.
As a result, the group said it had taken an £11.2 million impairment at its yarns business, which produces backings for carpets as well as artificial grass for the leisure industry.
The write-down saw pre-tax profits slump to £6.1m for the year to 30 November, from £23.4m a year earlier – excluding one-off items, profits were 4.7 per cent higher at £24.5m.
Chairman Martin Flower said: “These are good results during a period of continued macroeconomic challenge, particularly within Europe, providing further evidence of the quality and resilience of our business and its growth prospects.”
The board proposed a final dividend of 1.6p per share, to be paid in April, up from last year’s payout of 1.4p.