Excellent trading update today |
Good results.
Interested to read this in Bellway 's Prelims announcement today quote
There continue to be extended lead times and shortages of certain products, such as roof tiles and clay bricks.
Unquote |
On the bright side, those buybacks are getting cheaper... |
Looks like 150 or even below again! |
Presumably this is down to the withdrawal of mortgages |
SOMEONE has to own those houses, and people need them to live in. House prices will have to take the hit if the current prices are unaffordable.
I don't personally think price changes is going to stop housebuilding or extensions, just lower the margins on the newbuilds and the value of building land. |
fair comment edmund. The fear though will be that no one will be able to afford a new house |
Fundamentals not changed, but importing bricks just got even more expensive, so home-made brick prices are not going to be an issue IMO. Gas prices currently coming down, and forward energy contracts already doing their job.
Today I felt like adding to my holding as we approach the fear driven lows around 150p of March 2022 and March 2020. |
And that was when bricks were £300/1000 not the current £600-800/1000. There was still a housing shortage back then too. |
There is currently a supply shortage but for how long? Today I cancelled an order with Ibstock for 10 loads due to their impending 28.5% increase. These will be replaced by imports. It feels as though other industries are sharing the pain whereas the big brick boys are passing it all on. What happens when, and it will, supply is no longer the issue? It's not so long ago Forterra needed farmers fields to store excess Desford stock. |
hxxps://www.constructionenquirer.com/2022/07/28/forterra-brick-prices-rise-30-in-six-months/
No doubt further price rises to come there too. |
What rival producers? There is a supply shortage, only two serious rivals for some of their products, and imports are significantly more expensive because of the transport costs (not even factoring in the weak pound). Forterra and Wienerberger will have very similar price pressures on them. |
And are the rival producers cheaper? |
Question is - can anything sustain the incoming rises? Cant see many in hospitality making it without severe damage |
28.5% price increase incoming from Ibstock. Announced the days before a potential deal for businesses on gas. Hmm the cynic in me....can the brick industry sustain such rises? I make it 40-50% increase this year alone. We used to see 2.5-5% annual increases. There's going to be tears! |
Comical really though. A couple of days ago it was 199. Nothing has happened in the last few days that could have taken anybody by the least surprise. The selling since then would be worth a study into investor behaviour/reaction |
Hi jono.I got out early Friday morning. Just don't like the way things are with market in general.Who knows where support is, but at 160 I'd be back in |
Great to see IBST back up and over 200. Happy with the results and hold for upcoming dividend but equally happy to get out given the volatile market, thinking of putting in a stop loss but wandering what peoples thoughts are on support level? |
Adjusted EPS this year is 11.3, that is quite a bit better than 2018/19.
Net debt in 2019 was£62m (before that I guess comparisons are skewed a bit by disposed U.S. operations, but I haven't looked that far back); with rising interest rates it is good to see debt dropping now, and on that note I'd like to quote from these interims:
"We expect to deploy significant growth capital in the business during the balance of year and beyond, with a growing pipeline of both organic and inorganic opportunities. The Board continues to expect capital to be generated in excess of that required for its investment requirements and remains committed to returning surplus capital to shareholders as part of its dynamic and disciplined capital allocation strategy. " |
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. |
Register to chat with like-minded investors on our interactive forums.
Hot Features
Premium
