Ibstock PLC Trading Update (3072N)
January 17 2019 - 2:00AM
UK Regulatory
TIDMIBST
RNS Number : 3072N
Ibstock PLC
17 January 2019
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 GBP9.5 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:
Ibstock plc via Citigate Dewe Rogerson
Joe Hudson, CEO
Kevin Sims, CFO
Citigate Dewe Rogerson 0207 638 9571
Kevin Smith
Nick Hayns
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.
- 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.
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.
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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