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18 Jan 2018 07:00
Ibstock plc
Trading Update
Ibstock plc ('Ibstock' or the 'Group'), a leading manufacturer of clay bricks and concrete products with operations in the United Kingdom and the United States, today issues a trading update for the year ended 31 December 2017.
The Group continues to trade as anticipated with adjusted EBITDA for the year ended 31st December 2017 in line with expectations.
Group revenue for the year ended 31 December 2017 was up 4%.
Revenue from clay and concrete products in the UK, which represents approximately 80% of Group revenue, was up 5% for the full year compared to 2016. The increase in revenue in 2017 reflects mid-single digit volume growth for clay brick and further volume and price growth in the concrete businesses. As the year progressed brick markets proved to be stronger than anticipated and volume growth for the year was supported by stock reduction.
The market for bricks in Great Britain grew through 2017. Domestic manufacturers were unable to meet demand despite reducing their stock levels and consequently import levels rose during the year. Against this positive market backdrop, plant commissioning commenced at the Group's new soft mud brick factory in Leicestershire which will provide new manufacturing capacity as it increases output progressively during 2018. When fully commissioned towards the end of 2018, the new factory will increase Ibstock Brick's existing annualised capacity by approximately 100m bricks or c13%.
Revenue in the US was down 2% (6% at constant exchange rates) for the full year compared to 2016, principally reflecting a more competitive new build residential market impacting volume in some regions and a less favourable product mix.
Net debt at 31 December 2017 declined compared to prior year despite significant investment in previously announced major projects and is expected to be in line with management expectations with leverage at c1.0 times adjusted EBITDA.
We note the enactment of the new US Tax Cuts and Jobs Act. We continue to work through the full impact of these changes and will give more detailed guidance in our preliminary results announcement in March. For the year to 31 December 2017 we currently anticipate that the announced changes will have minimal impact on the Group's cash tax rate. However, we expect that the changes will result in a non-cash tax credit as a result of the revaluation of deferred tax balances in 2017.
The Group will announce its preliminary results for the year ended 31 December 2017 on 6 March 2018.
Enquiries |
Ibstock (enquiries via Citigate Dewe Rogerson) |
Wayne Sheppard (CEO) |
Kevin Sims (CFO) |
Citigate Dewe Rogerson 020 7638 9571 |
Kevin Smith |
Nick Hayns |
Notes to Editors:
Ibstock plc is a leading manufacturer of clay bricks with a diversified range of clay and concrete products, and operations in the United Kingdom and the United States. Its principal products are clay bricks, brick components, concrete roof tiles, concrete substitutes for stone masonry, concrete fencing and general concrete building products.
The Group's four primary businesses are:
UK business:
· | Ibstock Brick: The leading manufacturer by volume of clay bricks sold in the United Kingdom. With 19 manufacturing plants 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 is currently commissioning a new soft mud brick manufacturing plant in Leicestershire that has been designed to add approximately 100 million bricks (c13%) to its brick production capacity per annum. The new plant is expected to be fully commissioned towards the end of 2018. |
· | Supreme: A leading manufacturer of concrete fencing products, concrete lintels and general concrete building products, with seven manufacturing plants in the United Kingdom. |
· | Forticrete: A leading manufacturer of concrete substitutes for natural stone walling, dressings and concrete roof tiles, with seven manufacturing plants in the United Kingdom. |
US business:
· | GlenGery: A leading manufacturer of bricks by volume of despatches in the Northeast and Midwest regions of the United States, with a network of ten manufacturing plants, ten distribution centres and 29 active quarries, covered by 20 active quarry permits.
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