Home Estate Planning Building materials firm CRH hits record high after announcing new £236m buyback

Building materials firm CRH hits record high after announcing new £236m buyback

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Shares in Irish building material firm CRH have leapt this morning in London on the back of a seven per cent revenue uplift and buyback extension.

Product revenue at the group rose to $26bn (£20.5bn) from $24.5bn (£19.3bn) the year prior, while service revenues ticked up slightly to $8.7bn (£6.8bn) from $8.2bn (£6.4bn).

The group’s shares are up seven per cent in early morning trading, touching a record high.

In addition to the $300m (£236m) buyback tranche launched at the end of December and completed yesterday, the firm said it will extend the programme with an additional $300m (£236m) allocation to be completed by 9th May.

Gross profit rose to $11.9bn (£9.3bn) from $10.8bn (£8.5bn) the year prior, while net income fell to $3bn (£2.3bn) from $3.8bn (£2.9bn).

Last year, the company transitioned its primary stock exchange listing from London to New York in September last year.

It is part of a wider group of listed firms choosing to leave for across the pond as the strength of the UK as an investment market remains in question.

The firm expects a “favourable market backdrop and continued positive pricing momentum” through 2024 driven by greater infrastructure investment and re-industrialisation across North America and Europe.

“The year marked another record year of financial delivery for CRH, supported by good underlying demand across our key end-use markets, further pricing progress and the continued benefits of our differentiated, customer-focused strategy,” said the group’s chief executive Albert Manifold.

“Despite continued inflationary cost pressures during 2023 we expanded our margins and delivered further growth in profits, cash generation and returns.

“The strength of our balance sheet together with our relentless focus on the efficient allocation of capital enables us to capitalise on the opportunities we see for further growth and value creation in 2024 and beyond.”

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