Ibstock turns in 'resilient' FY performance

(Sharecast News) - Brick manufacturer Ibstock said on Thursday that it expects to deliver full-year adjusted underlying earnings broadly in line with market expectations after delivering a "resilient trading performance" in 2019.
Ibstock told investors that, despite the political and economic uncertainty and reduced new build housing activity in the second half, total revenues were still up mid-single digits year-on-year.

That, it said, primarily reflected pricing benefits in its clay brick business, volume growth in some key concrete product lines and the consolidation of Longley Concrete, acquired in July.

The FTSE 250-listed group, which posted a net debt of approximately £84m, said it continued to benefit from strong underlying cash generation, and remained towards the lower end of its target leverage range of 0.5-1.5x net debt-to-adjusted EBITDA.

Looking ahead, Ibstock cautioned that lower levels of residential construction activity in the second half of 2019 had created "a more subdued market backdrop" coming into 2020.

However, it added that market fundamentals for new build housing in the UK remained "robust" and considered itself "well positioned" to deliver growth over the medium-term.

As of 0815 GMT, Ibstock shares were down 1.08% at 293.80p.