Ibstock’s full-year underlying revenue rose 2% to 372mn, as a 6% rise in volumes was partly offset by weaker pricing.
Underlying cash profit (EBITDA) fell 10% to 71mn (£71mn expected). The decline reflects inflationary pressures and an unfavourable shift in product mix.
Underlying free cash flow fell from an inflow of £11mn to an outflow of £10mn. Net debt was £2mn lower at £120mn.
The group is facing a challenging start to the year, but expects modest volume growth in the second half. Price hikes are expected to offset cost inflation. Market forecasts point to full-year underlying cash profits rising around 3% to £73mn.
A final dividend of 1.5p per share was announced, taking the full-year total to 3p, down 25%.
The shares fell 3.7% in early trading.
Our view
HL view to follow.
Ibstock key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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