Ibstock Share Discussion Threads

[wad collector] 01/12/2020 20:49

Looking at the company website I am not clear how many facilities are running at close to full capacity now.
However the TU said ;

Both our Clay and Concrete businesses benefited from these improving conditions, with overall Group volumes recovering to around 90% of prior year levels in the month of September and remaining at these levels during the month of October. Group revenues for the three months to 30 September 2020 were 88% of those in the comparative prior year period.

[indigocarmine] 23/11/2020 10:55

I guess it would logically follow that if all the housebuilders are busy then Ibstock should be even busier, though ultimately capacity will be a limiting factor to their recovery.

[wad collector] 23/11/2020 09:53

Well the CFO timed his buy well , up 35% in 3 weeks! Wish I could say the same, down about 35% in a year!

[stur7672] 09/11/2020 14:16

Not unexpected as the market sea level has risen after positive vaccine news at lunchtime.

[ivorytowers] 09/11/2020 13:51

The share price has come to life yet there is no
response on here!!!!

[scruff1] 04/11/2020 21:27

SMCN
Chief Financial Officer bought 20,240 shares at around 147.5 p. Hes done ok upto now. Mind you it usually pays to do the opposite to what DB advise :-)

[smcni1968] 04/11/2020 02:53

Scruff1 what is the director comment referring to?

[scruff1] 03/11/2020 21:14

I mentioned that yesterday but nobody ususally takes that much notice of a rerating unless its on the back of poor results or some other nastyness. None o that here as far as I can tell. One of the directors certainly too humbrage. Interesting to see what happens tomorrow

[wynmck] 03/11/2020 14:01

blame D.Bank for yesterdays drop
they dropped to Hold from Buy ... tgt168 (183)

[sphere25] 03/11/2020 11:28

Taken a few here - bounced off key supports.

£50 million EBITDA vs a market cap of £626m and not in a distressed debt position. You'd think this one has been hammered enough and the market appears too bearish down at these levels.

However, the good ole bullishness is getting sapped by the day with more and more indecisive actions by the government so whether this or others continue to hold key supports is another matter. It's one big wrecking ball in motion that could lead to catastrophe, even more significant than at present.

[scruff1] 02/11/2020 21:33

I was expecting some big fallers eg BP. , JDW, GRG never materialised. Then this out of the blue.

[wynmck] 29/10/2020 14:06

UBS BUY raises tgt slightly to 215 (210)

[nigelbarker] 28/10/2020 09:39

just added some more its a sitting duck now for somebody

[edmundshaw] 28/10/2020 09:38

I top sliced to juggle investments a bit just 5 days ago, so happy to buy those back today.

Not a significant gain, but better than the dividend at the moment!

[wad collector] 28/10/2020 09:29

Agree, suspect the drop is temporary. Time to add if you have any spare cash? Sadly I don't.



Trading Update

Ibstock plc ('Ibstock' or the 'Group'), a leading manufacturer of clay bricks and concrete products in the United Kingdom, today issues a trading update for the period to 30 September 2020.

Trading performance and outlook

The Group saw continuing recovery in demand in the period, with trading conditions improving steadily across the third quarter. Activity levels in our Repair, Maintenance and Improvement (RMI) markets and merchant channels remained robust and we benefitted from improving volumes to our housebuilding customers as activity in the new build housing segment increased.

Both our Clay and Concrete businesses benefited from these improving conditions, with overall Group volumes recovering to around 90% of prior year levels in the month of September and remaining at these levels during the month of October. Group revenues for the three months to 30 September 2020 were 88% of those in the comparative prior year period.

As volumes have continued to improve, the benefit of the cost and capacity actions taken since the start of the second quarter have resulted in an encouraging recovery in margins across both businesses which are trending towards pre-COVID-19 levels on a run rate basis.

We have continued to operate our manufacturing sites in line with the recovery in customer demand and to ensure we have capacity in place to deliver on our volume expectations for the final quarter. As has been the priority since the onset of the pandemic, this has been done whilst ensuring the health and safety of our colleagues, with revised working protocols, including social distancing measures and onsite temperature checks, in place at all of the Group's locations.

The Group exited the third quarter with good momentum and current trading performance is ahead of our previous internal base case for the full year. Subject to there being no further material disruption in the balance of the year, the Board expects adjusted EBITDA for the 2020 financial year to be approximately GBP50 million.

Focus on maintaining strategic progress

Having executed an effective operational and financial response to the unprecedented disruption experienced across our business and markets in the second quarter, the sustained recovery in activity levels through the third quarter has enabled us to increase our focus on the initiatives that will support our long term strategic objectives.

As we addressed the issues arising from the pandemic we also decided to extend the programme of measures to improve the flexibility and cost competitiveness of the Group's manufacturing base, with the restructuring of operations, first announced in early June, expected to substantially complete by the end of the year. These actions are expected to result in a material structural reduction in our fixed cost base, delivering up to GBP20 million of annual cost savings in 2021. Whilst this will enable us to optimise returns should volumes remain below pre-COVID-19 levels, we have also retained the flexibility to respond quickly to scale up production as demand improves.

The Group continues to manage cash closely and remains in a robust financial position. We anticipate a reduction in net debt by the end of the year, compared to the GBP103 million reported as at the half year end, ensuring significant headroom under our GBP215 million revolving credit facility, which expires in March 2022, and against our renegotiated covenants. The inherent returns and cash generation capability of the business, enhanced by the cost actions taken, should enable the Group to de-lever quickly in 2021 assuming demand conditions remain broadly stable, enabling us to continue to deliver shareholder returns and invest in the Group's long term growth strategy, in line with our capital allocation priorities.

Pensions

During the third quarter, the Ibstock plc Pension Scheme completed a partial buy-in transaction with a specialist third-party provider. This transaction, which insures just over half of the Group's defined benefit liability, represents a significant step in the Group's continuing strategy of de-risking its pensions exposure.

Joe Hudson, Chief Executive Officer of Ibstock plc, commented:

"We are encouraged by the continued recovery in demand seen in the third quarter in both our Clay and Concrete businesses, although we remain mindful that there is significant uncertainty in the period ahead.

"We remain confident in the recovery of our markets over time and that the actions we have taken in the business leave us both with the necessary flexibility to meet current challenges and an organisation well positioned to take full advantage of future opportunities."

-Ends-

[edmundshaw] 28/10/2020 09:00

Down 10%? The statement does not look that bad to me. Yes the market is off today, but Forterrs is down 2% only...

[inntolife] 26/10/2020 10:45

Irishmatt, yes the slow (or not too slow) inexorable rise from the announcement of a trading update to the fall on Wednessday when the update doesn't meet the wild expectations of the traders. Gald I am an investor here.

[smcni1968] 26/10/2020 10:01

Won't Brexit make importing bricks more expensive?"Points 12 to 15 state that "A Movement Reference Number" is generated by a "Transit Accompanying Document" and "Exit Summary Declaration", and should be lodged with the "Goods Vehicle Movement Service".This then generates a "Goods Movement Reference" which is given to the driver, before a "Kent Access Permit" is secured to enter the county of Kent. Point 16 notes that anyone arriving in France without the correct documents could be sent back."

[irishmatt] 26/10/2020 09:20

Moving up nicely ahead of trading update

[scruff1] 19/10/2020 21:37

I have a building business (part time now I'm retired). Went to order some stone from the local stone yard and they said they have never been as busy. Hope HL werent tempting fate the other week by putting forward the possibility of a call for more cash.

[inntolife] 19/10/2020 17:43

Yes I saw that there wasn't one last year, initial thoughts were oh! maybe there have bad news to impart, then my normal optimism kicked in. The builders seem to be busy around us, therefore they must be using bricks :) I think the builders shares are depressed because of the overall concerns with regards to jobs and how secure they are. which will impact on the house sales in the spring, but hopefully by then we will have a vacine sorted.

[edmundshaw] 19/10/2020 11:38

Q3 trading update? We did not get one last year, but not sure quite what can be read into this as 2020 is just a bit different from normal...

[inntolife] 16/10/2020 16:21

Ed, subtly different but FORT seem to be doing a bit better at the moment. Oh well so long as they both increase, although I would prefer for IBST to beat the pants of FORT :)

[scruff1] 09/10/2020 20:59

Bit of analysis on HL wasnt particularly positive. Mention of a possible issue to increase funds. That wouldnt be good.