Full Year Results 2019 – statement

Resilient trading performance and good strategic progress provide platform for future growth

Ibstock Plc (“Ibstock” or the “Group”), a leading manufacturer of clay bricks and concrete products in the United Kingdom, announces its results for the year ended 31 December 2019.

12 months to 31 December	2019	2018	Change
Revenue	£409m	£391m	+5%
Adjusted EBITDA	£122m	£112m	+9%
Profit before tax	£82m	£93m	(12%)
Adjusted PBT	£85m	£84m	-
Statutory EPS	16.3p	18.8p	(13%)
Adjusted EPS	18.3p	18.8p	(3%)
Total Ordinary Dividend	9.7p	9.5p	+2%

Financial Highlights:

Solid revenue growth of 5%, reflecting growth in both our Clay and Concrete divisions
Adjusted EBITDA of £122 million, representing growth of 2% excluding a c.£7 million benefit from the adoption of IFRS 16
Adjusted EPS for 2019 marginally lower year-on-year, reflecting a higher effective tax rate for the year of 18.9% (2018: 17.4%)
Statutory PBT and EPS for 2019 are lower year-on-year, primarily reflecting exceptional profits on disposal of surplus property in FY18
Final dividend of 6.5 pence per share (2018: 6.5 pence per share) making the 2019 full year ordinary dividend 9.7 pence per share (2018: 9.5 pence per share), a 2% increase
Continued strong cash flow generation enabled an additional 5.0 pence per share supplementary dividend paid in September 2019
Net debt at year end, at £85 million, a net debt/EBITDA ratio of 0.7x (pre-IFRS 16), towards lower end of target range

Operational Highlights:

Resilient trading performance for the year, against a backdrop of political and economic uncertainty and reduced new build housing activity in the second half of 2019
Solid progress made with our three strategic priorities - Sustain, Innovate and Grow
Production volumes have benefited from the new Eclipse brick factory in Leicestershire, and the maintenance programme, which progressed as planned, allowing us to re-build inventory during the year from historic low levels
Integration of Longley is progressing well and the business has performed in line with expectations
Sustainability roadmap published with our progress in this area recognised externally with several awards, including an edie award for energy management for the second year in a row
Announcing £45 million investment to re-develop and expand existing brick factory; to be commissioned in 2022, delivering a leading production cost and sustainability profile

Joe Hudson, Chief Executive Officer of Ibstock Plc, commented: “2019 was a year of progress for Ibstock, as we delivered a resilient trading performance against a backdrop of political and economic uncertainty. We made good progress against our strategic priorities, including measures to enhance production volumes and quality, the strengthening of our executive team and expanding our Concrete business, through the acquisition of Longley Concrete.

“Our strong cash generation allowed us to invest in the business and to pay a further supplementary dividend to our shareholders while remaining towards the lower end of our debt guidance range. Today we are announcing a further investment in a new state-of-the-art 80 million per annum clay brick factory to re-develop our Atlas site, in the West Midlands.

“Fundamentals in the UK remain robust, with a structural housing deficit, low interest rates, high employment and the benefit of the Government’s Help-to-Buy scheme all underpinning the market. However, the political uncertainty which caused more subdued market conditions in the second half of 2019 has meant a slower start to 2020. We anticipate that activity levels will improve as the year progresses, and as a result, expect to deliver a stable outcome for the year.”

Results presentation

Ibstock is holding a presentation for investors and analysts at 10am today at 54 Hatton Garden, London, EC1N 8HN.

Analysts wishing to attend should contact ibstock@citigatedewerogerson.com to register.

An archived version of today’s webcast analyst presentation is available here.

Ibstock Plc
Joe Hudson, CEO
Chris McLeish, CFO
Robert Coates, Investor Relations Director	07880 486329

Citigate Dewe Rogerson	020 7638 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 two divisions are:

Ibstock Clay: 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 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 to its brick production capacity per annum. Ibstock Kevington provides masonry and pre-fabricated component building solutions, operating from 5 sites across the UK.

Ibstock Concrete: A leading manufacturer of concrete roofing, walling, flooring and fencing products, along with lintels and general concrete building products, with 16 manufacturing plants in the United Kingdom.

View full press release