Ibstock PLC Trading Update (1960C)
18 January 2018 - 6:00PM
UK Regulatory
TIDMIBST
RNS Number : 1960C
Ibstock PLC
18 January 2018
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 31(st) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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