Ibstock’s Clay and Concrete revenues have been weaker-than-expected in the third quarter, driven by an ‘uncertain near-term economic and political backdrop’ which has weighed on customer demand.
Net debt is now expected to be above previous group guidance, which had pointed to a ‘modest increase’ over the prior year’s level of £122mn.
Due to the softer market demand, sales volumes in the second half of the year are now expected to be in line with the first half. As a result, full-year underlying cash profit (EBITDA) guidance has been downgraded from between £77-82mn to around £72mn.
The shares fell 7.3% in early trading.
Our view
HL view to follow.
Ibstock key facts
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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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