IBSTOCK PLC Strong financial performance and further strategic progress
A year of strong performance
- Strong trading performance for the year, with both revenue and profit materially ahead of both the prior year and pre-pandemic comparators
- Adjusted EBITDA1 of £140 million (2021: £103 million) was ahead of our expectations set at the beginning of the year, with EBITDA margin of 27.2% (2021: 25.2%)
- Return on Capital Employed1 (ROCE) increased to 23.4% (2021: 15.8%) ahead of medium term target of 20%
- Balance sheet strength maintained with closing leverage of 0.4x (
- Recommended final dividend of
1 Alternative Performance measures are described in Note 3 to this results announcement
Building for the future
- Growth capital of £38 million deployed in the year to support our strategic growth over the medium-term
- Atlas and Aldridge brick projects are on track to commission from the end of 2023, delivering over 100 million bricks of lower-cost capacity per annum, with the whole Atlas range to be externally verified as carbon neutral
- Strategic acquisitions and investments in fast-growth areas of
- Brick slip investment strategy further refined, to both accelerate commissioning of an initial capacity extension, as well as incorporate more advanced and efficient process technology in the purpose built factory
- Continued strong progress towards ambitious ESG targets, including commitment to deliver 40% absolute reduction in carbon by 2030
- Ibstock Futures to open new state of the art innovation hub in
- Continued investment in people and culture delivering a step change in health, safety and wellbeing during the year
- Balance sheet strength provides resilience and strategic optionality to invest further for growth and return additional capital to shareholders over the medium term
Current trading and outlook
- Activity in the early weeks of 2023 has continued to reflect the more cautious demand environment seen in Q4 2022
- Energy price risk well covered with over 80% of energy requirements secured for H1 2023 and 65% secured for the full year
- Our focus will balance disciplined management of price, cost and capacity in the near-term with the delivery of our major growth projects and strategic progress to ensure delivery against our medium-term targets
- We expect conditions to remain subdued through the early part of 2023, but anticipate this to improve as the year progresses, supported by sequential demand improvement
- As such, the Board's expectations for the full year are unchanged
"These strong results reflect our continued focus on commercial and operational execution, which has enabled the Group to deliver significant growth and improved returns despite a challenging backdrop. Revenue and profit were materially ahead of both the prior year and pre-pandemic levels, reflecting the strategic progress we have made over the last five years, with the development of a high quality, lower cost and highly efficient asset base allied to the strength of our market positions.
"We have faced into the challenges of recent years to emerge as a more diverse, higher quality business, with a strong management team and a clear strategy focused on value creation in the years ahead. As we face another period of uncertainty, we will draw on this experience to optimise our performance in the short term, while continuing to invest in, and diversify, the business to ensure we remain well placed to deliver on our medium-term targets.
"Activity in the early weeks of 2023 has continued to reflect the more subdued demand environment experienced towards the end of last year, although we anticipate this to improve as the year progresses. With the strong strategic platform we now have in place, I am confident both in our ability to respond effectively to conditions this year, and to achieve significant growth over the medium-term."
Results presentation
Ibstock is holding a presentation at
Please contact ibstock@citigatedewerogerson.com to register your in-person attendance.
A live webcast of the presentation and Q&A is also available. Please register here for the live webcast.
The presentation can also be heard via a conference call, where there will be the opportunity to ask questions.
Conference Call Dial-In Details:
US: +1 786 697 3501
Confirmation code: please quote Ibstock Full Year Results when prompted
An archived version of today's webcast analyst presentation will be available on http://www.ibstockplc.com later today.
About
The Group comprises two core business divisions, Ibstock Clay and Ibstock Concrete, with Ibstock Futures established to accelerate diversified growth opportunities.
Ibstock Clay: The leading manufacturer by volume of clay bricks sold in the
Ibstock Futures: Complements our core businesses by accelerating diversified growth opportunities and addressing key construction trends, including sustainability and the shift towards Modem Methods of Construction (MMC).
Ibstock Concrete: A leading manufacturer of concrete roofing, walling, flooring and fencing products, along with lintels and general concrete building products, with 14 manufacturing plants in the
Forward-looking statements
This announcement contains "forward-looking statements". These forward-looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the directors. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are difficult to predict and outside of the Group's ability to control. Forward-looking statements are not guarantees of future performance and the actual results of the Group's operations. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Group undertakes no obligation to update or revise publicly any forward-looking statements.
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(C) 2023 M2 COMMUNICATIONS, source
