Slide 1: 2019 Interim Results
2019 Interim Results 31 July 2019 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and this presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scope
Slide 3: Agenda
Agenda 1. OVERVIEW Joe Hudson CEO 2. FINANCIAL REVIEW 3. OPERATIONAL UPDATE Kevin Sims 4. Q&A CFO 3
Slide 4: Overview
Overview FINANCIAL OVERVIEW Net debt to EBITDA at Supplementary dividend of 0.5x 5p Revenues Adjusted EBITDA +6% to +8% to £203m £59m per share reflecting seasonal working in addition to interim dividend capital change of 3.2p per share OPERATIONAL OVERVIEW New Eclipse factory Acquisition of leading
Slide 5: Financial review
Financial review 5
Slide 6: Financial highlights
Financial highlights Six months ended 30 June (£m) 2019 2018 Movement Continuing operations Revenue 203.3 191.6 6.1% Adjusted EBITDA(1) 59.0 54.9 7.5% Adjusted PBT 41.6 41.8 -0.5% Adjusted PBT is slightly lower year-on-year Adjusted EPS 9.0p 9.2p -2.2% reflecting higher D&A and interest expense as
Slide 7: Solid revenue growth across both divisions
Solid revenue growth across both divisions +£11.7m (+6.1%) Group revenue up 6% to £203m Primarily driven by Clay division 9.0 203.3 191.6 2.7 Pricing in line with expectations Volume growth from new 100m soft mud brick factory partly offset by the enhanced maintenance program Concrete reve
Slide 8: Adjusted EBITDA bridge
Adjusted EBITDA bridge Adjusted EBITDA +7.5% to £59m, reflecting; +£4.1m (+7.5%) Solid revenue growth in Clay division, partly offset by cost inflation and maintenance program 3.7 1.0 3.1 59.0 Concrete profitability impacted by phasing of 1.7 production and sales mix 54.9 PLC costs up c.£1m
Slide 9: Strong balance sheet supporting growth and returns
Strong balance sheet supporting growth and returns Working capital outflow in H1 reflects seasonality in the Six months ended 30 June (£m) 2019 2018 Change % Change business Adjusted EBITDA(1) 59 55 4 7% Capex reflects phasing of maintenance and enhancement Δ in net working capital (20) (21) +1
Slide 10: Operational review
Operational review 10
Slide 11: Leading UK brick manufacturer and concrete products
Leading UK brick manufacturer 3 leading brands Revenues of c.£300m p.a. Revenues c.£100m p.a. Product range of 400+ brick types, and “specials” and Diverse product range across; components Roof tiles Ibstock Brick owns the UK’s largest tonnage of high quality Fence posts clay reser
Slide 12: Market dynamics remain supportive
Market dynamics remain supportive Brick Consumption (billions of bricks) Brick Production and Stock (billions) Domestic Despatches Imports Production Stock 2.5 0.4 0.4 2.1 0.3 2.0 1.9 1.9 1.8 1.8 0.3 0.2 0.1 0.3 1.6 1.6 1.6 0.1 0.1 1.4 1.5 0.1 0.1 1.3 2.0 2.1 2.1 1.7 1.8 1.8 1.6 1.6 1.7 1.5 1.6 0.9
Slide 13: Solid performance in Clay
Solid performance in Clay 6 months ended 30 June (£m) 2019 2018 Change %Change Revenue 150.9 141.9 +9.0 6% Adjusted EBITDA 51.2 45.0 +6.2 14% Margin 34% 32% Revenue growth reflects pricing benefits and product from our new 100m soft mud brick factory Adjusted EBITDA growth reflects higher revenu
Slide 14: Mixed performance in Concrete
Mixed performance in Concrete 6 months ended 30 June (£m) 2019 2018 Change %Change Revenue 52.4 49.7 +2.7 5% Adjusted EBITDA 10.5 11.5 -1.0 -9% Margin 20% 23% Divisional reorganisation underway Revenue growth benefitting from higher sales in roofing Softer domestic RMI and infrastructure marke
Slide 15: Acquisition of Longley Concrete
Acquisition of Longley Concrete Creating a leading national concrete flooring business Family run concrete business dating back to 1947 CONCRETE FLOORING Leading market position in concrete flooring (T-beams) across the North FACTORY LOCATIONS and Midlands Strong strategic rationale: Experie
Slide 16: Sustainability roadmap
Sustainability roadmap Charity partner UK’s Most Ethical / Sustainable Manufacturer of the Year Award Long-term community investment partnership 16
Slide 17: Summary and outlook
Summary and outlook Solid start to the year and good progress with strategic initiatives Strong balance sheet and cash generation support bolt-on M&A and supplementary dividend INVESTING Expectations for the full year remain broadly unchanged FOR GROWTH Fundamentals remain supportive Organ
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: Key investment highlights
Key investment highlights Experienced Market Structural Strong Multiple Strong Industry High barriers senior leadership demand customer growth financial structure to entry management positions growth service ethic options performance team Strong household Vertically integrated High quality, broad Ad
Slide 21: Leading manufacturers of….
Leading manufacturers of…. 21 21
Slide 22: A leading provider of clay and concrete building products
A leading provider of clay and concrete building products End market Sales channel Infrastructure Others Other 1% 4% new build 10% Factors 24% Merchants New build 46% housing RMI 54% 35% Housebuilders direct 26% RMI exposure Key supplier to the Complementary Cross-selling Innovative Opportunity to a
Slide 23: Disciplined capital allocation
Disciplined capital allocation PRIORITISATION Organic growth, Supplementary Ordinary dividends, Selective M&A maintenance and dividends when pay out ratio of 40-50% where we see a strong improvement capital appropriate on a of adjusted profit strategic fit expenditure discretionary basis DEBT SUMMAR
Slide 24: IFRS 16 impact
IFRS 16 impact The Group has elected to use the modified retrospective transition method for adoption of the IFRS 16 from 1 January 2019 The impact of the initial application of IFRS 16 on the consolidated financial statements for the year ending 31 December 2019 as follows: Recognition of a right
Slide 25: Summary balance sheet
Summary balance sheet 30 June (£m) 2019 2018 Assets PP&E 378 409 Right of Use assets 37 - Intangible 96 113 Non-current assets 511 522 Inventories 67 101 Trade and other receivables 64 90 Current assets 131 191 Total assets 642 713 Trade and other payables (84) (95) Lease liabilities (37) - Other li
Slide 26: Summary cash flow
Summary cash flow 30 June (£m) 2019 2018 Adjusted EBITDA(1) 59 55 Working capital (20) (21) Net interest (1) (2) Tax (7) (4) (2) Post-employee benefits (1) (4) Other - 2 Net cash flow from operations 30 26 Total capex (19) (15) Surplus asset disposals 1 - Net cash flow from investing activities (18)
Slide 27: Adjusted P&L reconciliation H1 2019
Adjusted P&L reconciliation H1 2019 Fair Value (£m) Adjusted Adjustments Property Exceptionals Other Reported Revenue 203 - - - - 203 Costs (144) - - (1) - (145) Other - - - - - - EBITDA 59 - - (1) - 58 D&A (12) (4) - - - (16) EBIT 47 (4) - (1) - 42 Finance (1) - - - (1) Tax (9) 1 - - - (8) PAT 37 (
Slide 28: Adjusted P&L reconciliation H1 2018
Adjusted P&L reconciliation H1 2018 Fair Value (£m) Adjusted Adjustments Property Exceptionals Other Reported Revenue 192 - - - - 192 Costs (137) - - - - (137) Other - - 6 2 - 8 EBITDA 55 - 6 2 - 63 D&A (7) (4) - - - (11) EBIT 48 (4) 6 2 - 52 Finance (2) - - - - (2) Tax (8) 1 (2) - - (9) PAT 38 (3)