Already the UK’s largest brick manufacturer, Ibstock (IBST) still managed to expand in the last quarter of 2017, with the opening of a 100m brick plant in Leicestershire. This is expected to increase overall capacity by 13 per cent when full production is reached in 2019.
This will also help to reduce brick imports, which in 2017 reached over 300m. And with the new-build housing sector showing continued output growth, Ibstock also opened its own roof tile plant, where demand often exceeded growing capacity.
Turnover in the UK increased by nearly 6 per cent to £363m, and improved efficiency helped to boost adjusted cash margins from 29.8 per cent to 30.5 per cent. However, trading in the US saw revenue down by 2 per cent at £89m, reflecting a more competitive environment in the residential new-build market, and volume fell as Ibstock declined to chase business by lowering its prices.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits of £106.8m and EPS of 20.5p for the year to December 2018 (from £88.3m and 21.4p in 2017).
| IBSTOCK (IBST) | ||||
| ORD PRICE: | 275.2p | MARKET VALUE: | £1.12bn | |
| TOUCH: | 275-275.4p | 12-MONTH HIGH: | 283p | LOW: 198p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 104p** | NET DEBT: | 28% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015*(restated) | 358 | 86 | 32.6 | 4.4 |
| 2016 | 435 | 111 | 22.3 | 7.7 |
| 2017 | 452 | 83 | 18.1 | 9.1 |
| % change | +4 | -25 | -19 | +18 |
| Ex-div: | 10 May | |||
| Payment: | 8 Jun | |||
| *Covers the period from 28 November 2014 to 31 December 2015 **Includes intangible assets of £116m, or 29p a share | ||||
