Thanks Wad
Perhaps some broker upgrades on the way |
 The results are a bit disingenuous as they compare very favorably to last years numbers, but unlike many companies, they don't also show the 2019 figures for comparison. I am more interested in comparisons to the pre- Covid figures.
I include them below, which do confirm similar numbers to 2018. So time to climb?
Half year to 30 June 2019 2018 (2) Change
Revenue GBP203m GBP192m 6%
-------- --------- -------
Adjusted EBITDA (1) GBP59m GBP55m 8%
-------- --------- -------
Profit before tax GBP41m GBP50m (17%)
-------- --------- -------
Statutory EPS 8.1p 10.0p (19%)
-------- --------- -------
Adjusted EPS (1) 9.0p 9.2p (2%)
-------- --------- -------
Interim dividend 3.2p 3.0p 7%
-------- --------- -------
Supplementary dividend 5.0p 6.5p
Statutory results
---------------------------- ------------------------------------------------
Six months ended 30 2022 2021 Change %
June
---------------------------- -------- ---------- -------- --------- -----
Revenue GBP259m GBP202m +GBP57m +28%
-------- ---------- -------- --------- -----
Profit before taxation GBP51m GBP39m +GBP12m +32%
-------- ---------- -------- --------- -----
EPS 10.0p 2.7p +7.3p >100%
-------- ---------- -------- --------- -----
Interim dividend per
share 3.3p 2.5p +0.8p +32%
-------- ---------- -------- --------- -----
Adjusted results(1)
Six months ended 30 2022 2021 Change %
June
-------- ---------- -------- ---------
Adjusted EBITDA GBP71m GBP55m +GBP16m +29%
---------------------------- -------- ---------- -------- --------- -----
Adjusted EPS 11.3p 7.9p +3.4p +43%
---------------------------- -------- ---------- -------- --------- -----
Adjusted free cash flow GBP30m GBP23m +GBP7m +29%
---------------------------- -------- ---------- -------- --------- -----
Net debt GBP36m GBP53m GBP18m 33%
lower lower
============================ ======== ========== ======== ========= === |
Thanks Edmund!
How stupid of me not to see. |
H1 results are out and they are good. |
What's caused this sudden surge up guys?
Weird |
https://www.fool.co.uk/2022/07/26/3-reasons-id-consider-owning-ibstock-shares/ |
Buybacks are not my favourite disease generally, but at these prices I am very happy to see Ibstock increasing my shareholding with their spare cash.
In fact there are several buybacks in my shares at the moment and I am in favour of most of them at current prices. I pretty much agree with Warren Buffett's comment "When stock can be bought below a business’s value it is probably the best use of cash." He also said "Anytime you can buy stock for less than it’s worth, it’s advantageous to the continuing shareholders ... but it should be by a demonstrable margin" That proviso is important to me, and the failure by some companies to set limits on the buyback price is one of the reasons people are often against them: shares bought back willy-nilly at any old price is just not very bright... happily here and now there is no issue on that score! |
As a holder of Ibstock I was interested to read rather a fluffy piece in today's Telegraph about how small family building companies are having a really tough time given the scarcity and pricing of key supplies, specifically bricks and mentioning the 12pc price increase made by Forterra in April.
Has yet to impact the IBST share price. I checked progress in the buy back programme. My reading is that they have bought back 3,125k shares which at an average price of 175p equates to £5.5m ie they are still in the early days if they do do £30m of buybacks. |
Got a mention in todays DT as a good divi investment |
My only concern ere is that the housing market has slowed and is going down.So I am taking profits today and selling my shares been a good run ereGood luck to yer all. Our Kid is out |
 https://www.thetimes.co.uk/article/challenges-rain-down-on-big-miners-tzxd9jm9cIbstockWhen this column looked at Ibstock last August, inflation was a tiny cloud on the horizon, energy was plentiful, post-pandemic supply bottlenecks had hardly begun and Ukraine a far-off land familiar mainly to trekkers.For Britain's biggest brickmaker, the news since then could not have been much worse. The shares have fallen from 223p to as low as 167p. After rising following the publication of 2021's results on March 9, the price wilted again before a bullish statement yesterday, with the sweetener of a £30 million buyback, generated a 14½p, 8.8 per cent, rise to 181p.Joe Hudson, Ibstock's chief executive, told yesterday's annual meeting that the company had "made a strong start to 2022 . . . Mindful of the broader macroeconomic uncertainties, we expect to deliver performance for the full year modestly ahead of our previous expectations."SIGN UP FOR OUR ...Weekly newsletterNews, inspiration and advice for business leaders from British entrepreneursthetimes.co.uk/newslettersEnergy is a big factor in making bricks, so Ibstock has bought forward at fixed prices 75 per cent of what it will need for this year's second half and more than 30 per cent of the likely 2023 requirement.It has done well out of surprisingly strong demand for new houses and stands to benefit from the removal of unsafe cladding from blocks of flats. Ibstock Futures has bought glass-reinforced concrete panel technology, particularly suited to recladding. Its repairs, maintenance and improvement business has been generally strong.Last year, it said it would do better than forecasts of £93 million for adjusted earnings before tax, interest and other costs. The actual number was £103 million, encouraging for Hudson's numbers for 2022. Ibstock looks capable of earnings per share this year of 15p or more, which would mean a price-earnings ratio of below 12. It may want to hold on to cash in light of uncertainty, but even an unchanged 7.5p dividend would leave a useful 4.25 per cent yield.ADVICE BuyWHY Well placed to overcome multiple headwinds |
edmund
If Austrian companies get contracts by the Ukranians over UK companies then it would be a betrayal. Cant see it though.
Im surprised that its taken this trading update to lift the share price I thought much of the energy situation was already known and that the share price drop was a bit strange and overdone. I also would have thought that the talk of a big increase in social housing would have given it a fillip - but it didnt. Ive found it all a tad weird |
Hopefully that correction will be coming now Edmund |
A good example here of the U.K. corporate sector being on sale again. Expecting a ramp up in corporate activity over the next 6 months |
Austria's finance minister in early April ruled out any EU sanctions that target oil and gas coming from Russia.
Wieneberger, HQed in Austria, is one of the main three brick suppliers in the UK (with Ibstock and Forterra). I for one won't be buying any building or other supplies from an Austrian or German company, as my personal sanctions against countries that are funding Putin's barbarous invasion and destruction of Ukraine. The idea that Wieneberger might even benefit from the reconstruction of Ukraine is pretty unpalatable...
I hope other decisionmakers in the UK might prefer to avoid Wieneberger and support our Uk-owned production where possible. |
Super trading update today. Most energy requirements for this year sorted three months in, a third of next year's too (hopefully partly hedged so they can take advantage of any price drops). £30m buybacks due to leverage below the planned level.
Share price lately has been bizzarly low, an upward correction is well due IMO. |
Looks like the divi is not attractive to many. |
Looks like the divi is not attractive to many. |
Forterra is constructing a huge solar array which will provide most (70% was it?) of their energy requirements in a few years. Seems a lot, so I suppose they might be feeding back to the grid on very sunny days, not heard the detail. But Ibstock might do something parallel to avoid the carbon issue. |
wad
Fair post. I would imagine that like BP Ibstock will have an eye on the green issue. Having said that apart from energy and clay there aint much else needed.
Wood maybe but as a builder I can tell you its not currently at least a cheap alternative - certainly not as a facing. The cement for concrete and the bedding of the bricks I would imagine will cause the most hassle. Bricks are aesthetically pleasing and even timber frames are usually skinned with brick. Depending on where you are a lot of false stone look blocks are used but thats concrete/cement which is where I expect any issues to arise. Will be interesting at any rate |
Unless someone else can make bricks more cheaply in energy terms , Ibstock should be relatively insulated from energy costs, providing the demand persists.
The UK is the largest importer of bricks in the world , according to OEC , but I don't think we need to worry too much about that , as 1 . They are mostly from Europe - which is generally hit harder by energy prices than us, and 2. It was a total of $30M in 2019. Or in import terms , our 822nd most valuable import.
Looking longer term it could be argued that the energy intensive brick should be replaced by more sustainable materials like wood, and obviously there is a drive in that direction , but ask the Three Little Pigs about that one!
I keep forgetting that about 25% of the revenue here is from concrete not bricks , though the precast imports are similarly small and the energy and sustainability problems similar.
I doubt there will be a chance to buy at 160 again for a while. |
Ibstock announced a price increase of £38/1000 hitting the industry April, titled as an energy surcharge. |
Good looking results. Dividend up and very confident.
Back in this morning |
Very nice looking results. The share price is obviously completely out of step.
Dynamic pricing against energy risk, 85% of energy requirements covered for the whole year, which should work out very nicely in the current environment.
Price target for me is 300p. |
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