Ibstock sees full-year earnings in line

Brick and concrete products manufacturer Ibstock said on Thursday that adjusted earnings for the year are set to be in line with expectations as it has continued to trade as anticipated.

In an update for the year to 31 December 2018, the company said revenues from its UK clay and concrete products were up 8% compared to 2017 thanks to price and volume growth, mostly in the clay brick business. Ibstock said it expects to report low single-digit growth in adjusted earnings before interest, tax, depreciation and amortisation for the UK business, in line with expectations.

It also expects to report a profit of £9.5m on disposal of surplus property during the year. This is excluded from its adjusted earnings guidance.

Net debt reduced "significantly" compared to the previous year due to strong underlying cash generation and the receipt of the proceeds from the disposal of Glen-Gery and surplus properties throughout the year.

As a result, Ibstock expects to report net debt to adjusted EBITDA below 0.5x at 31 December 2018, on a continuing basis.

"Despite ongoing political and economic uncertainty, we enter 2019 well positioned and with a strong balance sheet. We continue to assess investment options in the UK as we look to deliver long term growth," it said.

At 0900 GMT, the shares were up 0.5% to 237.20p.