Ibstock Plc Interim Results Statement – period 6 months to 30th June 2017

Continued robust performance while investing in UK capacity to meet growing demand

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 unaudited results for the six months ended 30 June 2017.

Results for the period

*Half year to 30 June*	2017	2016	Change
Revenue	£228.3m	£210.0m	+8.7%
Profit before tax	£38.9m	£37.9m	+2.7%
Profit before tax pre-exceptional¹	£43.3m	£37.7m	+14.4%¹
Adjusted EBITDA¹	£59.7m	£55.6m	+7.4%
Statutory basic EPS	7.6 pence	7.4 pence	+2.8%
Adjusted basic EPS¹	9.5 pence	8.2 pence	+16.0%
Interim dividend	2.6 pence	2.4 pence	+8.3%

Financial Highlights

Strong growth in revenue and adjusted EBITDA in line with management’s expectations
Net debt¹to EBITDA at 1.4x, after £17 million of capex
Return on capital employed¹at 19%, after cumulative capex of £46 million on major projects at Leicester and Lodge Lane, with returns to come
Continued strong underlying cash conversion¹
Successful refinance of debt in March 2017
Interim dividend of 2.6 pence per share (2016: 2.4 pence per share) reflecting the Board’s policy of paying one-third of the prior year’s full-year dividend

Operational Highlights

UK Clay benefitting from good activity levels within the UK new build housing sector with brick volumes well ahead year-on-year
Continued growth in UK Concrete
New roof tile line at Forticrete now in production with good demand take-up from major housebuilders
Investment in additional UK brick capacity to meet demand
- New 100m capacity brick plant in Leicestershire to commence commissioning in Q4 2017 and will expand the Group’s UK brick capacity by c.13% when in full production
- Capacity expansion project at Lodge Lane blue brick plant in Cannock on schedule, with commissioning to commence in Q4 2017
US performance level year-on-year with a slowdown in residential and non-residential projects evident since the Spring

Wayne Sheppard, Chief Executive Officer of Ibstock Plc, commented: “The Group has delivered a robust first-half performance. UK brick volumes were well ahead, driven by good activity levels in the UK new build housing sector and our concrete businesses also enjoyed solid growth.

“Against this backdrop of continued robust demand we are investing in the UK clay business to increase capacity. Our new brick factory in Leicestershire will begin commissioning in the final quarter of this year, with production to build progressively across 2018. When operating at its full capacity of 100m bricks per annum it will expand UK domestic brick production by 5%, adding a much-needed new source of supply. A second project – to increase capacity at our blue brick plant at Cannock – is also on track.

“Looking ahead, the longer-term fundamentals underpinning the new-build housing market in the UK – government support, good mortgage availability and an undersupply of new homes – remain in place, although we continue to be alert to any changes in customer confidence stemming from political uncertainty after the recent General Election result and the on-going Brexit negotiations.

“The Group remains strongly cash generative, we are investing for further growth, and our expectations for another year of progress are maintained.”

Results presentation

Ibstock is holding a presentation to analysts at 09:00 today at the offices of JP Morgan, 1 John Carpenter Street, London, EC4Y 0JP. Analysts wishing to attend should contact ibstock@citigatedr.co.uk to register.

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