Ibstock plc Interim Results Statement – period 6 months to 30th June 2019

Interim results for the six-month period ended 30 June 2019

Overall Group financial performance in line with expectations

Strong balance sheet supports the acquisition of Longley Concrete and payment of a supplementary dividend of 5.0 pence per share

Ibstock Plc ('Ibstock' or the 'Group'), a leading manufacturer of clay bricks and concrete products in the United Kingdom, announces its unaudited results for the six-month period ended 30 June 2019.

Half year to 30 June	2019	2018²	Change
Revenue	£203m	£192m	6%
Adjusted EBITDA¹	£59m	£55m	8%
Profit before tax	£41m	£50m	(17%)
Statutory EPS	8.1p	10.0p	(19%)
Adjusted EPS¹	9.0p	9.2p	(2%)
Interim dividend	3.2p	3.0p	7%
Supplementary dividend	5.0p	6.5p	-

Financial Highlights

Solid revenue and adjusted EBITDA growth in line with management’s expectations
Adjusted EBITDA includes c.£3 million benefit from the adoption of IFRS 16
Reported PBT and EPS are lower year-on-year due to a combination of exceptional profit on disposal of surplus property reported in H1 2018 of c.£6 million and higher effective tax rate in H1 2019
Interim dividend of 3.2 pence per share (2018: 3.0 pence per share)
Additional 5.0 pence supplementary dividend to be paid alongside the 2019 interim dividend in September 2019

Operational Highlights

Market conditions in the new build housing sector remain stable
New Eclipse soft mud brick factory in Leicestershire performing well and supporting industry demand
Enhanced maintenance programme in UK brick business has progressed well
Acquisition of Longley Concrete, a precast concrete business with three manufacturing plants in the UK, for £14 million, which is highly complementary to our existing concrete operations and will support future growth of the division
Awarded UK’s Most Ethical / Sustainable Manufacturer of the Year

Joe Hudson, Chief Executive Officer of Ibstock Plc, commented: “I am pleased to report a solid first half performance for the Group and good progress with our strategic initiatives.

“Our financial strength and cash flow generation provide a platform to invest for growth and create long term value for our shareholders. We are pleased to be announcing today the acquisition of Longley Concrete, a highly complementary addition to our concrete business. At the same time, we confirm our intention to pay a supplementary dividend for 2019, demonstrating our commitment to shareholder returns and our confidence in the underlying strength of the business.

“Overall, market fundamentals in the UK are stable, with low interest rates, high employment levels, good mortgage availability and the Government’s Help to Buy scheme all remaining supportive. This should continue to underpin activity levels in the new build housing market over the medium term. In the short term, we are cognisant of the ongoing macroeconomic uncertainty in the UK, and note that there has been some slight softening in the merchant sector in recent weeks. Nonetheless, the Board anticipates a further year of progress for the Group and our full year expectations remain broadly unchanged”.

¹ Alternative Performance Measures are described in Note 3 of the financial statements.

² 2018 figures are adjusted to present the results for continuing operations only.

Results presentation

Ibstock is holding a presentation to analysts at 10:30 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
Kevin Sims, 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 (c.13%) 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