Brick manufacturer Ibstock announces intention to float on London Stock Exchange
Brick manufacturer Ibstock has announced plans to float on the London Stock Exchange.
The clay brick and concrete product specialist has a 40% share of the UK clay brick market, and in its full-year results to 30 June 2015, Ibstock posted record revenue of £395m and adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of £87m, representing a margin of 22%.
The firm said: “Ibstock is experiencing structural demand growth in its key UK brick market - this is driven by strong household formations, a significant shortage of homes and supportive government policies.
“Against this demand backdrop, the UK brick market is experiencing structural imbalances, with insufficient manufacturing capacity to fulfil UK demand.
“There are high barriers to new brick capacity, including access to clay reserves and manufacturing sites with appropriate planning permissions and the technical “know how” to procure and commission the plant and equipment required to manufacture bricks.”
It added: “The directors believe the group is well positioned to take advantage of these attractive market fundamentals.”
Ibstock chief executive Wayne Sheppard said: “Our markets are benefiting from a powerful alignment of growth factors.
“In the UK, a long-term undersupply of new homes compounded by strong population growth and rates of household formation has created substantial unfulfilled demand for new housing.”
He added: “With the UK Government’s Help to Buy initiative extended to 2020, these robust demand fundamentals present an attractive opportunity, making this an exciting time for Ibstock to return to the public markets.”