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CRH share price surges as group posts positive start to year

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Shares in CRH (LON:CRH) have climbed higher in London in today’s session as the company posted a positive start to 2019. The building materials group revealed that it had benefitted from mild weather during the reported period.

As of 14:34 BST, the CRH share price had added 1.35 percent to 2,627.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.84 percent lower at 7,459.66 points. The group’s shares have added a little over five percent to their value over the past year, as compared with less than one-percent gain in the Footsie.

Positive start to year

CRH said in a statement today that it had made a positive start to the year with first-quarter like-for-like sales seven percent ahead of the prior-year period. The company explained that sales volumes had benefited from mild weather conditions and good momentum across most of our major markets. The building materials group also noted that its acquisition of Ash Grove, which completed in June last year, had traded in line with expectations with synergy delivery progressing as planned.

Going forward, CRH expects its first-half EBITDA to be in excess of €1.5 billion, ahead of the €1.13 billion in the first half of last year.

Proactive Investors quoted UBS as commenting that full-year EBITDA will be positively impacted by €190m from the new IFRS-16 accounting changes, €130m net M&A contribution, €50 million of currency changes and organic growth, seeing the benefits of last year’s reorganisation happening in the second half of the year.

Analysts on CRH

As of April 19, the consensus forecast amongst 22 polled investment analysts covering CRH for the Financial Times has it that the company will outperform the market. According to MarketBeat, the building materials group currently has a consensus ‘buy’ rating, while the consensus target for the CRH share price stands at 2,925.75p.

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