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Full Year Results 2016 – statement
Results for the year ended 31 December 2016
Robust performance while investing for future growth
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, announces its preliminary results for the year ended 31 December 2016.
Financial Highlights1
- Group revenue up 5% to £435 million
- UAdjusted EBITDA2 4% to £112 million
- Adjusted EPS of 18.1 pence
- Net debt3 to EBITDA reduced to 1.2x, after £59 million of capex
- Return on capital employed4 at 19%, after £44 million of capex on major projects
- Continued strong cash conversion of 88%5
- Final dividend of 5.3 pence per share (2015: 4.4 pence per share) making the full year 2016 dividend 7.7 pence per share
Adjusted results for the period
Year to 31 December | 2016 | 2015 | Change |
|---|---|---|---|
Revenue | £434.7m | £412.8m | +5.3% |
Adjusted EBITDA | £111.6m | £107.0m | +64.70% |
Adjusted EPS6 | 18.1 pence |
The adjusted results for 2015 use the full twelve-month trading period as comparative information, as set out in Note 3.
Statutory results
12 months ended 31 December 2016 | Restated period ended 31 December 2015 (contains only 10 months' trading) | |
|---|---|---|
Revenue | £434.7m | £358.3m |
Profit before tax | £110.9m | £86.3m |
Statutory EPS | 22.3 pence | 32.6 pence |
Final dividend | 5.3p | 4.4p |
Operational Highlights
- UK Clay business saw a stronger second half driven by good activity levels from the new build housing sector and gradual reversal of brick destocking by UK merchants/distributors - full year brick volumes slightly ahead of 2015
- Concrete products performed well, particularly in the domestic landscaping RMI and new homes sectors - volumes ahead in both businesses
- Major UK capital projects progressed to schedule
- New metric roof tile line at Forticrete commissioned in Q4 2016 and first tiles introduced to the market to excellent customer reception
- New 100m p.a. capacity brick manufacturing plant in Leicestershire on schedule to commission in H2 2017
- £8m project to improve manufacturing efficiencies and increase blue brick capacity at Lodge Lane, Cannock commenced in late 2016
- Glen-Gery delivered strong profit growth for the year in line with expectations with solid non-residential and single family home markets supporting performance
Wayne Sheppard, Chief Executive Officer of Ibstock Plc, commented: "Ibstock delivered a robust full-year performance for 2016, with the Group result ahead of the prior year despite the uncertainty arising from events such as the EU referendum in the UK and the US Presidential election. At the same time, we have continued to invest in the future of the business with our new tile line at Forticrete now in operation, construction of the new Leicestershire brick plant on schedule and a further capacity expansion project underway at Lodge Lane in Staffordshire. The main earnings benefits from these investments will flow through in future years.
"We have made an encouraging start to the new financial year, against softer comparatives from 2016 when our UK Clay business was affected by distributor destocking. With continued strength in the new home developer market, normalised demand from the merchant sector in the UK, and a positive economic backdrop in the US, our businesses have traded ahead of the prior year in the early weeks of 2017. While we remain mindful of the uncertainties surrounding Brexit we maintain our expectations for another year of progress."
Results presentation
Ibstock is holding a presentation to analysts at 0900 today at the offices of UBS, 5 Broadgate, London, EC2M 2AN.
Analysts wishing to attend should contact ibstock@citigatedr.co.uk to register.
An archived version of today’s webcast analyst presentation is available here.
Enquiries
Ibstock (enquiries via Citigate Dewe Rogerson) Wayne Sheppard (CEO) Kevin Sims (CFO) | |
Citigate Dewe Rogerson Kevin Smith Nick Hayns |
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