Global materials group CRH (CRH) reported a strong 2016 performance, thanks to a number of acquisitions and a generally firmer footing in its key US markets. Sales were ahead by 15 per cent, but even without acquisitions grew by 4 per cent.
CRH has a history of making acquisitions, spending €213m (£181m) on 21 bolt-on purchases in 2016, although this is small change compared with the nearly €8bn spent in 2015, including LH Assets and CRL. With its vast experience in integrating acquisitions, total synergies last year came to €89m. Operational gearing and strict cash management saw net cash flow rise nearly 5 per cent to €2.3bn, which helped to trim net debt by €1.3bn to €5.3bn.
The US accounts for around half of group sales, and an increase in residential and non-residential activity, together with favourable weather and acquisitions, helped to push ready-mixed concrete volumes up by a fifth, while prices were increased by 4 per cent. With the acquisition of LH Assets, CRH's Asian presence grew significantly, and with sales last year more than doubling, cash profit jumped from just €2m to €109m.
Analysts at broker Davy are forecasting pre-tax profit of €1.89bn and EPS of 163.8¢ in 2017, rising to €2.14bn and 185.3¢ in FY2018.
CRH (CRH) | ||||
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ORD PRICE: | 2,824p | MARKET VALUE: | £23.5bn | |
TOUCH: | 2,823-2,824p | 12-MONTH HIGH: | 3,029p | LOW: 1,700p |
DIVIDEND YIELD: | 2% | PE RATIO: | 22 | |
NET ASSET VALUE: | 1,667¢* | NET DEBT: | 37% |
Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€bn) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2012 | 18.1 | 0.65 | 75 | 62.5 |
2013 | 18.0 | -0.22 | -41 | 62.5 |
2014 | 18.9 | 0.76 | 79 | 62.5 |
2015 | 23.6 | 1.03 | 89 | 62.5 |
2016 | 27.1 | 1.74 | 150 | 65 |
% change | +15 | +69 | +69 | +4 |
Ex-div: 9 Mar Payment: 5 May *Includes intangible assets of €7.8bn, or 932¢ a share £1=€1.174 |