UK's Ibstock H1 revenue falls 15% on subdued demand
UK's Ibstock H1 revenue falls 15% on subdued demand
Overview
UK building products maker's H1 revenue fell 15%
Adjusted EBITDA for H1 dropped 28%
Company reported statutory pretax loss after £25 mln impairment charge on soft mud facilities
Outlook
Ibstock expects full-year results at the lower end of current market expectations
Company expects net debt and leverage to reduce, with leverage towards 2 times at end-2026
Ibstock says market conditions to remain challenging in the near term, with subdued demand
Result Drivers
SUBDUED DEMAND - Co said weak private housebuilding and RMI activity weighed on volumes and revenue
CAPACITY AND INVENTORY MANAGEMENT - Co actively managed capacity, production volumes and inventory, reducing manufacturing efficiency and profitability
PRICE INCREASES AND SURCHARGES - Price increases in February and a temporary fuel surcharge in June partly mitigated cost inflation
Company press release: ID:nRSE2900Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 164 mln |
|
FY Adjusted EBITDA |
| GBP 26 mln |
|
FY Pretax Loss |
| GBP 27 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy"
Wall Street's median 12-month price target for Ibstock PLC is GBp117.50, about 20.1% above its August 4 closing price of GBp97.80
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Aug 4 - UK's SIG first-half profit slides 31% on weak demand, higher costs
Aug 4 - UK's Travis Perkins profit rises as turnaround starts to bear fruit
Aug 4 - UK's Keller Group H1 revenue rises 11% on North America demand
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)