Ibstock PLC AGM Trading Update (0672P)

TIDMIBST

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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