This appears to be a sensible thing to do - it will means they are "almost" debt-free, although they appear to have a robust business, I wonder if it won't drag as the R bites?
Cutting the dividend is standard practice in these times/raising capital etc.
-I just wince at the potential dilution...but at 25p these new shares are relatively cheap - however, I wonder how many folks will want to spend cash on shares? This could drop the sp further ( 25p today)....so it may pay to wait...dunno.

+And I thought they liked "Floors" - I must have misunderstood that.

EDIT(18/8/10)-sp fell 6% today. Now 36.5/37- maybe their future is not so bright?
EDIT (Nov2014)- after Relocation plans to Dubai....OOOPS! Sp down quickly from over £1 to 45p - looks like there is disruption as they move plant from Dundee. Oo-er. However, the area in Dubai is looking very positive IMHO so the LT situation may not be as dire as expected. Once moved they will have space to expand, lots of projects going and should still have their existing Business contacts, if they maintain UK sales-force. So whilst it probably was a Sell a few weeks ago, I suspect now is not the time to create a Loss, rather hold for more Rights - as this Thread suggests...?

For anyone reading... the other Thread is about Icelandic takeover, which is not relevant to [LWB]. However, I'd welcome thoughts .... Esp. on whether [LWB] will remain listed in London - that could be a killer!