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Annual Results

Ibstock beats expectations

07 March 2017 11:04

Brickmaker Ibstock announced its 2016 results beat expectations as profit before tax climbed from £86.3m to £110.9m in the year to 31 December.

Group revenue was up 5% to £435m, while adjusted earnings before interest, tax, depreciation and amortisation rose 4% to £112m.

HIGHLIGHTS:

- Adjusted earnings per share of 18.1p

- Net debt to EBITDA reduced to 1.2x, after £59m of capex

- Return on capital employed at 19%, after £44m of capex on major projects

- Continued strong cash conversion of 88%

- Final dividend of 5.3p per share (2015: 4.4p per share) making the full year 2016 dividend 7.7p per share

Ibstock entered 2017 with brick industry statistics recording a return to volume growth after a slower first half in 2016 for the market, and with industry stock levels declining.

In the UK, the company's developer customers looked to increase their activity in 2017.

Management said it expects to see normalised demand from merchant customers now that their stock levels returned to balance.

In the US, with the Presidential election over, forecasters expect the firm's markets to continue to grow in the year ahead and expect to see a continued steady improvement as the US economy settles.

At 11:04am: (LON:IBST) Ibstock Plc share price was +5.45p at 208.55p

Story provided by StockMarketWire.com

Related Company: IBST

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