Ibstock PLC AGM Trading Update (0183G)

TIDMIBST

RNS Number : 0183G

Ibstock PLC

24 May 2017

24(th) May 2017

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 2017 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

The Group has shown encouraging trading momentum in the first four months of 2017.

Our UK brick sales have continued to progress in the first four months of 2017 principally reflecting good volume growth into the new build residential housing market and a return to normal levels of sales through Builders Merchants. Price increases by sales channel have been achieved in line with expectations with average pricing year to date reflecting the increased new housing volumes.

The UK concrete businesses have achieved a good start to the year, whilst in the US an unusually mild winter boosted sales in the early months of the year however activity in March and April has fallen back to more traditional seasonal levels.

We continue to progress our organic growth investment projects with the commissioning of our new 100 million brick per annum soft mud factory in Leicestershire anticipated to commence in the fourth quarter of 2017. Forticrete's new concrete roof tile manufacturing line is now in production and the new innovative roof tiles have been well received by the market. The new kiln project at Lodge Lane is also progressing to plan.

Outlook

Market fundamentals in 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 steady performance in our US business.

The Board expects another year of progress for the Group and its expectations for the full year remain unchanged.

The Group's results for the six months to 30 June 2017 will be announced on 10 August 2017.

 
 Enquiries 
 
 Ibstock (enquiries via Citigate Dewe Rogerson) 
 Wayne Sheppard (CEO) 
 Kevin Sims (CFO) 
 
 Citigate Dewe Rogerson           020 7638 9571 
 Kevin Smith 
 Nick Hayns 
 

Note to the Editor:

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 concrete rail products.

The Group's four primary businesses are:

 
 --   UK business: 
      o   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(1) . It operates a network of 23 active 
           quarries which are generally located close to 
           its manufacturing plants. Ibstock Brick has commenced 
           construction of a new soft mud manufacturing 
           plant in Leicestershire that is expected to add 
           approximately 100 million bricks (c13%) to its 
           brick production capacity per annum. The new 
           plant is expected to commence commissioning in 
           the fourth quarter of 2017. 
      o   Supreme: A leading manufacturer of concrete fencing 
           products and concrete lintels and general concrete 
           building products, with seven manufacturing plants 
           in the United Kingdom. 
      o   Forticrete: A leading manufacturer of concrete 
           substitutes for natural stone walling and dressings 
           and niche concrete roof tiles, with seven manufacturing 
           plants in the United Kingdom. Forticrete has 
           a new and innovative concrete roof tile manufacturing 
           line at its Leighton Buzzard facility which started 
           commissioning in the fourth quarter of 2016. 
 --   US business: 
      o   Glen-Gery: 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 and 29 active quarries, 
           covered by 20 active quarry permits. 
 

([1]) 2016, Excluding imports

This information is provided by RNS

The company news service from the London Stock Exchange

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May 24, 2017 02:00 ET (06:00 GMT)