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magazineFactory problems put a brick through Ibstock forecasts
Ibstock
(IBST) 245.2p
Loss to date: 18.1%
Original entry point:
Buy at 299.4p, 10 May 2018
The market already knew brick maker Ibstock (IBST) was a victim of delays associated with an exceptionally cool winter and early spring in the UK.
However a 30 July trading update reveals that now demand has recovered, the company is unable to fully service its customer base thanks to issues in its production facilities.
As a result, and factoring in maintenance spend to address the problems in its factories, earnings before interest, tax, depreciation and amortisation will come in below previous forecasts for between £130m and £134m at between £121m and £125m.
This largely looks a headache of the company’s own making which is frustrating for investors and for Shares given we recently highlighted the attractions of the stock.
Notably recent first half results (31 Jul) from its main UK rival Forterra (FORT) were more impressive with revenue up 10.6% to £162.7m.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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