Ibstock grows in first report as listed company

Ibstock revealed what looked like a year of solid growth on Thursday, as it published its first results as a listed company.

Adjusted revenue at the FTSE 150 brick manufacturer improved 10.6% during the period to £412.8m, with adjusted EBITDA up 64.7% to £107m.

The company's adjusted results were based on a 12 month period, with its statutory results covering the period from 28 November 2014 to 31 December 2015. Ibstock said the statutory figures were complicated by the acquisition of operating businesses from CRH in February, and the initial public offering in October 2015.

Its results were in line with the board's expectations, with UK revenue ahead by 9% year-on-year, largely reflecting stronger clay brick prices. Ibstock also reported continued improvement in US performance, with revenue up 10% year-on-year in local currency.

Ibstock said it had strong free cashflow from operations of £69m and reduced its net debt to £145m, less than 1.4x adjusted EBITDA, and at a faster rate than anticipated.

"Our 2015 results are particularly pleasing as they clearly show that despite the CRH disposal and subsequent IPO we maintained our focus and delivered excellent growth in sales, profitability and cash generation for our investors," said chief executive Wayne Sheppard.

"While it is early in the year to have any real visibility, at this point our expectations for the full year remain unchanged despite a slower start for UK brick sales into the RMI market. Our major capital investment projects are progressing to plan and we anticipate another year of progress in 2016. The fundamentals supporting our business remain strong," he added.