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17 Jan 2019 07:00
Ibstock Plc
Trading Update
Ibstock plc ('Ibstock' or the 'Group'), a leading UK manufacturer of clay bricks and concrete products, today issues a trading update for the year ended 31 December 2018.
The Group has continued to trade as anticipated and adjusted EBITDA for the year is expected to be in line with expectations.
On 23 November 2018, the Group disposed of Glen-Gery, its US brick manufacturing operation. The trading results of this business will be reported as discontinued operations in the full year results for 2018, and therefore excluded from adjusted EBITDA.
Revenues from our UK clay and concrete products were up 8% for the full year compared to 2017, reflecting both price and volume growth, primarily in our clay brick business. We expect to report low single digit growth in adjusted EBITDA for the UK business, which is in line with expectations.
The enhanced maintenance programme in the Group's UK brick business continues to progress well.
As previously announced, we also expect to report £9.5 million of profit on disposal of surplus property during the year. This amount is excluded from the adjusted EBITDA guidance noted above.
As at 31 December 2018, net debt reduced significantly compared to the prior year due to strong underlying cash generation, as well as receipt of the proceeds from the disposal of Glen-Gery and surplus properties throughout the year. As a result, we expect to report net debt to adjusted EBITDA below 0.5x at 31 December 2018, on a continuing basis.
Despite ongoing political and economic uncertainty, we enter 2019 well positioned and with a strong balance sheet. We continue to assess investment options in the UK as we look to deliver long term growth.
The Group will announce its preliminary results for the year ended 31 December 2018 and provide a further update on its strategy on 5 March 2019.
Enquiries to: |
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Ibstock plc | via Citigate Dewe Rogerson |
Joe Hudson, CEO |
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Kevin Sims, CFO |
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Citigate Dewe Rogerson | 0207 638 9571 |
Kevin Smith |
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Nick Hayns |
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About Ibstock Plc
Ibstock plc is a leading manufacturer of clay bricks and a diversified range of clay and concrete products, from its operations in the United Kingdom. Its principal products are clay bricks, brick components, concrete roof tiles, concrete substitutes for stone masonry, concrete fencing and pre-stressed concrete products.
The Group's primary UK businesses are:
- | Ibstock Brick: The leading manufacturer by volume of clay bricks sold in the United Kingdom. With 19 manufacturing sites Ibstock Brick has the largest brick production capacity in the United Kingdom. It operates a network of 23 active quarries which are generally located close to its manufacturing plants. Ibstock Brick has recently commissioned a new soft mud brick manufacturing plant in Leicestershire that added approximately 100 million bricks (c13%) to its brick production capacity per annum. |
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- | Supreme: A leading manufacturer of concrete fencing products, concrete lintels and general concrete building products, with seven manufacturing plants in the United Kingdom. |
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- | Forticrete: A leading manufacturer of concrete substitutes for natural stone walling, dressings and concrete roof tiles, with seven manufacturing plants in the United Kingdom. |
Forward-looking statements
This announcement contains "forward-looking statements". These forward-looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the directors. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are difficult to predict and outside of the Group's ability to control. Forward-looking statements are not guarantees of future performance and the actual results of the Group's operations. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Group undertakes no obligation to update or revise publicly any forward-looking statements.
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