Not for the first time Low & Bonar is subject to significant change. The Civil Engineering division is being reorganised, a cost reduction programme is underway, a defined plan to reduce debt by £15m is also underway and Philip de Klerk has been promoted from FD to Chief Executive. We now expect a flat year in FY18, having previously expected good growth. We see the management change as positive and if the debt can be successfully managed down, we continue to see value within the Group. However, confidence rebuilding is clearly required and we await further detail at the analyst presentation and then later in the year. For now we remain at Hold with a reduced 56p price target.
