Ibstock issue 2018 Trading Update
Group says adjusted EBITDA for year ended 31 December expected to be in line with expectations
IN their trading update for the year ended 31 December 2018, Ibstock plc, UK manufacturers of clay bricks and concrete products, say the Group continued to trade as anticipated and adjusted EBITDA for the year is expected to be in line with expectations.
On 23 November 2018, Ibstock disposed of Glen-Gery, their US brick-manufacturing operation. The trading results of this business will be reported as discontinued operations in the full year results for 2018, and are, therefore, excluded from adjusted EBITDA.
Revenues from Ibstock’s UK clay and concrete products were up 8% for the full year compared with 2017, reflecting both price and volume growth, primarily in the clay brick business. The Group expects to report low single-digit growth in adjusted EBITDA for the UK business, in line with expectations.
Ibstock also expect to report a £9.5-million profit on the disposal of surplus property during the year. This amount is excluded from the adjusted EBITDA guidance noted above.
As at 31 December 2018, the Group’s net debt reduced significantly compared with the prior year due to strong underlying cash generation, as well as receipt of the proceeds from the disposal of Glen-Gery and surplus properties throughout the year.
As a result, Ibstock say they expect to report net debt to adjusted EBITDA below 0.5x at 31 December 2018, on a continuing basis.
Despite the ongoing political and economic uncertainty, the Group says it is entering 2019 well positioned and with a strong balance sheet, and will continue to assess investment options in the UK as it looks to deliver long-term growth.
Ibstock will announce their preliminary results for the year ended 31 December 2018 and provide a further update on their strategy on 5 March 2019.