REG - Ibstock PLC - AGM Trading Update

IbstockAnnouncement

21/04/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220421:nRSU8193Ia&default-theme=true

RNS Number : 8193I  Ibstock PLC  21 April 2022

21 April 2022

 

Ibstock plc

 

AGM Trading Update

Ibstock plc ('Ibstock' or the 'Group'), a leading UK manufacturer of clay
bricks and concrete products, announces a trading update for the first quarter
of FY 2022, ahead of its Annual General Meeting, which is to be held at
11:00am today.

 

Highlights

 

 ●    Strong start to the year, with Q1 performance ahead of our expectations driven
      by stronger clay brick sales volumes and resilient margin performance

 ●    Board now expects FY22 performance to be modestly ahead of its previous
      expectations

 ●    Investment-driven growth initiatives progressing well and £30 million Share
      Buy Back Programme announced today as part of ongoing value creation strategy

 

Trading update

 

The strong start to the year reported at the time of our FY21 results in March
has continued, with Q1 performance ahead of our expectations.

 

Demand remains firm in all our end markets. Our Clay plant network is
performing well, with production volumes marginally ahead of our expectations,
while our dynamic commercial approach has enabled a full recovery of input
cost inflation. Solid operational execution in the Concrete division ensured
it performed in line with our expectations, despite some continuing supply
chain challenges.

 

The operating environment continues to be characterised by significant levels
of input cost inflation, primarily in the categories of energy, freight,
carbon and materials. In relation to energy, our hedging strategy has
positioned us well against a backdrop of elevated prices. We have now
substantially covered energy requirements for the first half of the year, have
purchased around 75% of requirements for the second half and have over
one-third covered for 2023. The Group remains committed to taking the actions
necessary to protect and maintain margins going forwards.

 

The Group is continuing to make good progress with our growth initiatives: the
Atlas, Aldridge and Nostell capital investment projects are all progressing in
line with expectations; and Ibstock Futures has advanced the integration of
the recently acquired glass reinforced concrete (GRC) assets into its
operations.

 

Having made a strong start to the year, whilst we remain mindful of broader
macroeconomic challenges, the Board now expects full year 2022 performance to
be modestly ahead of its previous expectations.

 

 

Share Repurchase Programme

At the time of our 2021 results announcement in March 2022, the Group
announced a clear path for growth and value creation over the next five years,
based on a combination of investment within its core business and diversified
growth opportunities, supported by a set of medium-term financial targets.

As part of our disciplined approach to capital allocation, and with projected
Group leverage below our target range, Ibstock is today announcing its
intention to initiate a share buyback programme of up to £30 million.

This return of capital is in addition to our committed growth investments of
over £100 million and, after this repurchase programme, we continue to
anticipate significant financial capacity to support further growth investment
and additional shareholder returns over the medium term.

 

Joe Hudson, Chief Executive Officer, commented:

"We've made a strong start to 2022, supported by robust demand in our end
markets and a dynamic commercial approach to manage input price inflation.

Energy prices remain a key focus and our forward buying policy has ensured
that around 75% of H2 2022 requirements are covered, with more than a third of
2023 requirements also locked in.

Demand in both the new build housing and RMI markets remains robust and, while
we are mindful of the broader macroeconomic uncertainties, we now expect to
deliver performance for the full year modestly ahead of our previous
expectations.

We are also pleased to be announcing a £30 million share buyback programme,
demonstrating our ability to deliver enhanced returns to shareholders whilst
continuing to invest in our future growth."

 

 

 Ibstock plc             01530 261 999
 Joe Hudson, CEO
 Chris McLeish, CFO

 Citigate Dewe Rogerson  020 7638 9571
 Kevin Smith
 Holly Gillis

 

About Ibstock Plc

Ibstock plc is a leading UK manufacturer of clay bricks and a diversified
range of clay and concrete

products. Its principal products are clay bricks, brick components, concrete
roof tiles, concrete alternatives for stone masonry, concrete fencing and
pre‐stressed concrete products.

The Group's two divisions are:

Ibstock Clay: The leading manufacturer by volume of clay bricks sold in the
United Kingdom. With 16 manufacturing sites Ibstock Brick has the largest
brick production capacity in the United Kingdom. It operates a network of 18
active quarries located close to its manufacturing plants. Ibstock Kevington
provides masonry and pre-fabricated component building solutions, operating
from 6 sites across the United Kingdom.

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 United Kingdom.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEANLEAFAAEFA