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Ibstock PLC

Ibstock plc Overall group financial performance in line with expectations

Ibstock plc (LON:IBST), a leading manufacturer of clay bricks and concrete products in the United Kingdom, today announced its unaudited results for the six-month period ended 30 June 2019.

Half year to 30 June20192018 2Change
Revenue£203m£192m6%
Adjusted EBITDA 1£59m£55m8%
Profit before tax£41m£50m(17%)
Statutory EPS8.1p10.0p(19%)
Adjusted EPS 19.0p9.2p(2%)
Interim dividend3.2p3.0p7%
Supplementary dividend5.0p6.5p

Financial Highlights:

·    Solid revenue and adjusted EBITDA growth in line with management’s expectations

·    Adjusted EBITDA includes c.£3 million benefit from the adoption of IFRS 16

·    Reported PBT and EPS are lower year-on-year due to a combination of exceptional profit on disposal of surplus property reported in H1 2018 of c.£6 million and higher effective tax rate in H1 2019

·    Interim dividend of 3.2 pence per share (2018: 3.0 pence per share)

·    Additional 5.0 pence supplementary dividend to be paid alongside the 2019 interim dividend in September 2019

Operational Highlights:

·    Market conditions in the new build housing sector remain stable

·    New Eclipse soft mud brick factory in Leicestershire performing well and supporting industry demand

·    Enhanced maintenance programme in UK brick business has progressed well

·    Acquisition of Longley Concrete, a precast concrete business with three manufacturing plants in the UK, for £14 million, which is highly complementary to our existing concrete operations and will support future growth of the division

·    Awarded UK’s Most Ethical / Sustainable Manufacturer of the Year

Joe Hudson, Chief Executive Officer of Ibstock plc, commented:

“I am pleased to report a solid first half performance for the Group and good progress with our strategic initiatives.

“Our financial strength and cash flow generation provide a platform to invest for growth and create long term value for our shareholders. We are pleased to be announcing today the acquisition of Longley Concrete, a highly complementary addition to our concrete business.  At the same time, we confirm our intention to pay a supplementary dividend for 2019, demonstrating our commitment to shareholder returns and our confidence in the underlying strength of the business.

“Overall, market fundamentals in the UK are stable, with low interest rates, high employment levels, good mortgage availability and the Government’s Help to Buy scheme all remaining supportive. This should continue to underpin activity levels in the new build housing market over the medium term. In the short term, we are cognisant of the ongoing macroeconomic uncertainty in the UK, and note that there has been some slight softening in the merchant sector in recent weeks. Nonetheless, the Board anticipates a further year of progress for the Group and our full year expectations remain broadly unchanged”.

1 Alternative Performance Measures are described in Note 3 of the financial statements.

2 2018 figures are adjusted to present the results for continuing operations only.

Results presentation

Ibstock is holding a presentation to analysts at 10:30 today at 54 Hatton Garden, London, EC1N 8HN.

Analysts wishing to attend should contact ibstock@citigatedewerogerson.com to register.

Analysts unable to attend in person may listen to the presentation live by using the details below:

Webcast link: https://edge.media-server.com/mmc/p/ci9pvff2 
Conference Call Dial-In Details: +44 (0) 20 3003 2666
Password: Ibstock

An archived version of today’s webcast analyst presentation will be available on www.ibstockplc.com
later today.