Ibstock Share Chat (IBST)

This pages worth keeping an eye on for upcoming ex-div dates, etc:
https://www.dividenddata.co.uk

Website updated: record date 21 April, paid 12 May.

Is 13th April? Company website ain’t reyt good…

Sold today, too tempting £1800 profit in couple of days. Keeping an eye still though as reckon it's got more to go. Might regret it later but it's now gone into PSN so kinda related.

unhooked i understand your frustration but i do believe that you will see a rerating of this stock in the near future.
the progress of this company is being held back by the decline in the the overall negative sentiment to the house building sector this will change and lets face it the dividend is more than enough to keep share holders happy while they wait for the inevitable rerate of this stock. jmho

These are v good results under present circumstances yet the share price doesn't react a jot.
What does this company actually have to do?
Share price has been subdued literally for years... still below the IPO price of 7 years ago, in fact.
Why aren't institutions seeing what I'm seeing? Best guess is that on the macro level they're shoving loads of money out of equities and into bonds where near 'risk-free' rates look decent.
Still bl**dy frustrating though. Three years held and getting nowhere with this share.

Happy enough with them and the increased dividend. No surprise to hear there’s a bit of a slowdown in sales recently but still well positioned to trade through it and still deliver healthy profit. If I wasn’t already invested here I’d definitely see this as an excellent growth opportunity over 18-24 months with decent dividends to tide you over for the time being. Expecting a meaningful re-rate at any time.

Not too many FTSE stocks with that AND growth potential. I'm in for 25k ,sold shell for a decent price. This is better on both fronts ATM. Let's see. My mrs has held these in her account for a few yrs and is fair bit down but holds for the divi and I'm sure it'll recover above £2 . Good luck all ;-)

Great set of results in my view. Extremely happy with my long term investment here. Onwards n upwards...
Ash

Strong performance, increasing dividend and well invested for the future.
A good share to keep , IMHO.

Took some profit @173p. Left some in for future gains hopefully.

I think they could be dependent upon the wider economy - hopefully inflation is peaking and ultimately housebuilding will continue given the general housing shortage existing and that will continue for the foreseeable.

That represents an increase of about 10% on the underlying operating profits expected by analysts for the financial year just passed. The division's also recently added glass reinforced concrete business to its portfolio, as well as a fireproof cladding company, further progress in building out the sustainability strategy. But if trading deteriorates significantly, continued investment could put the group in a precarious position.

The strong property market of recent years has begun to retreat, and we're already seeing signs of falling construction activity, particularly in the new build market. However, it's worth noting that house prices don't necessarily impact Ibstock.

The group gets paid as long as houses are being built and refurbished, so a modest cooling would do little harm. But with interest rates reaching their highest levels since the 2008 financial crisis, we have concerns that a correction could be more significant. This has yet to impact Ibstock's profits, but we are seeing some indicators of a slowdown in the wider construction market.

Management's spent much of the last year shoring up the balance sheet putting the group in a much stronger position, which allowed for a now completed buyback programme. But demands on cash are not insignificant between rising investment and dividend payments.
Dividends have historically been well-covered by free cash flow, but it's something to keep an eye on moving forward. However, the recent guidance upgrade gives us some comfort that the prospective yield approaching 5% is achievable, albeit it can never be guaranteed.
Ibstock's valuation is below the long-term average, suggesting the market isn't overly excited. We think the valuation doesn't price much in for future growth prospects, but see increasing potential for shock that could negatively impact sentiment in the short term.

Ibstock key facts

Forward price/earnings ratio: 11.3
Ten year average forward price/earnings ratio: 12.4
Prospective dividend yield (next 12 months): 4.7%

All ratios are sourced from Refinitiv. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn't be looked at on their own - it's important to understand the big picture.

From Hargreaves Lansdow:

Ibstock - 2022 ahead of expectations
Derren Nathan | 18 January 2023
No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

As expected by management, Ibstock saw volumes tail off in the fourth quarter due to reduced activity amongst its client base in the construction sector. Nonetheless, it described performance in the quarter as resilient, driven by a continued focus on price and margin management and good operational execution.
Ibstock now expects a 25% increase in 2022 revenues to about £510m, with cash profits (EBITDA) modestly ahead of management's prior expectations. Cash generation is also better than expected, with net debt at the year-end of about £46m.
Ibstock is continuing to invest in its Futures division which focuses on the shift to sustainability and industrialisation in the construction industry.
In 2023 Ibstock cautioned that higher interest rates, inflation and heightened market uncertainty are likely to impact demand for its products. However, it remains confident in its medium-term financial targets.

The shares were broadly flat in early trading.

Our View [HL]

Even against a deteriorating outlook for housebuilders, Ibstock has been doing better than expected. Input cost inflation has been mostly offset by price increases, and the group's been able to capitalise on strong post-pandemic demand. But things are now getting tougher. That said, two upgrades in as many trading updates is no mean feat in the current environment.

Focus has shifted to growth rather than survival and management is using it's more efficient operations to pay for modernisation of two of its factories. That will increase capacity and allow the group to take advantage of growth opportunities as they arise.
There's also a push to become a leader in more sustainable housebuilding with the advent of a new division-Ibstock Futures. The first order of business for this new arm is brick slips, a type of lightweight brick facade. The group is spending £50m over the next few years to build the UK's first brick slip factory, a venture that's expected to return roughly £10m per year when all's said and done.

1/2

Is it just me or are these a great long term buy?

Market reacted reasonably well

& cashflow

Performance and outlook

because , it is on the cards that it will return to pre Covid revenue AND has it's own state of the art energy generating plant

" ... looking at 10 % dividend and 50% price rise in 12 months"

Why?

agree, looking at 10 % dividend and 50% price rise in 12 months

Dam cheap at this level...

Biggest riser on my watchlist. Liking that update. Results very good.
"Whilst remaining mindful of the uncertain macroeconomic environment, the resilience of our business model and the strength of our performance in the third quarter of the year give us confidence in the outlook for the full year. Accordingly, we now expect performance for the 2022 year to be above our previous expectations."

https://www.proactiveinvestors.co.uk/companies/news/995642/ibstock-sees-full-year-above-expectations-after-strong-q3-trading-995642.html

idiot