AGM Trading Update

RNS Number : 0672P

Ibstock PLC

24 May 2018

 

24 May 2018

Ibstock plc

AGM Trading Update

Ibstock plc ('Ibstock' or the 'Group'), a leading manufacturer of clay bricks and concrete products with operations in the United Kingdom and the United States, today provides a trading update for the four months ended 30 April 2018 ahead of its Annual General Meeting, which is to be held at 2:00 pm today at the offices of Citigate Dewe Rogerson, 3 London Wall Buildings, London Wall, London EC2M 5SY.

Trading Summary

After a slower than expected start to the year for our brick and concrete businesses in the UK, which largely reflects an extended winter season, volumes have begun to return to more normal levels over recent weeks. Price increases by sales channel have been achieved in line with our expectations, although energy prices in the year to date have been higher than expected and this is likely to continue for the remainder of 2018. The commissioning of our new 100 million brick per annum soft mud factory in Leicestershire is progressing to plan.

US activity was also impacted by the weather in Q1 but volumes are now in line with traditional seasonal levels.

Outlook

Market fundamentals in the UK remain robust with the demand for new housing, in particular, continuing to underpin activity levels in both our clay and concrete businesses. At this early stage in the US building season we anticipate a stable performance from our Glen Gery business.

The Board expects another year of progress for the Group, albeit with performance expected to be weighted towards the second half, driven predominantly by new volumes from its major projects in bricks and roof tiles. 

The Group's results for the six months to 30 June 2018 will be announced on 9 August 2018.

Enquiries

Ibstock (enquiries via Citigate Dewe Rogerson)

Joe Hudson (CEO)

Kevin Sims (CFO)

Citigate Dewe Rogerson	020 7638 9571
Kevin Smith
Nick Hayns

Notes to Editors:

Ibstock plc is a leading manufacturer of clay bricks with a diversified range of clay and concrete products, and operations in the United Kingdom and the United States. Its principal products are clay bricks, brick components, concrete roof tiles, concrete substitutes for stone masonry, concrete fencing and general concrete building products.

The Group's four primary businesses are:

UK business:

·	Ibstock Brick: The leading manufacturer by volume of clay bricks sold in the United Kingdom. With 19 manufacturing plants Ibstock Brick has the largest brick production capacity in the United Kingdom. It operates a network of 23 active quarries which are generally located close to its manufacturing plants. Ibstock Brick is currently commissioning a new soft mud brick manufacturing plant in Leicestershire that has been designed to add approximately 100 million bricks (c13%) to its brick production capacity per annum. The new plant is expected to be fully commissioned towards the end of 2018.
·	Supreme: A leading manufacturer of concrete fencing products, concrete lintels and general concrete building products, with seven manufacturing plants in the United Kingdom.
·	Forticrete: A leading manufacturer of concrete substitutes for natural stone walling, dressings and concrete roof tiles, with seven manufacturing plants in the United Kingdom.

US business:

·	GlenGery: A leading manufacturer of bricks by volume of despatches in the Northeast and Midwest regions of the United States, with a network of ten manufacturing plants, ten distribution centres and 29 active quarries, covered by 20 active quarry permits.

 

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