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CRH PLC on Thursday said it will move its primary stock listing to the US from London, which together with a strong set of annual results sent its shares soaring. The stock was up 11% at 4,381.00 pence each in London on Thursday morning. The Dublin-based building materials company said revenue climbed by 12% to $32.72 billion in 2022 from $29.21 billion in 2021. This beat Jefferies’ estimate of $32.12 billion. In the Americas Materials division, sales were up 15% on 2021. In Building Products, sales were up 26%. Sales in Europe Materials were in line with a year earlier. Pretax profit grew 12% to $3.47 billion from $3.10 billion. Operating profit increased 17% to $3.89 billion from $3.33 billion. Earnings before interest, tax, depreciation and amortisation improved by 13% to $5.6 billion, beating guidance of $5.5 billion. This was up from $5.0 billion as ‘good commercial management and further operational efficiencies offset significant cost inflation’, CRH explained. Chief Executive Officer Albert Manifold said: ‘Our 2022 performance reflects the outstanding commitment of our people, the underlying strength and resilience of our business and the continued delivery of our integrated, solutions-focused strategy. Despite significant cost pressures throughout the year, we delivered further improvements in profits, margins and returns.’ CRH proposed a final dividend of $1.03 per share, taking the total dividend for 2022 to $1.27, up 5.0% from $1.21 a year prior. The company also said it plans to substantially increase its share buyback programme through the repurchase of up to $3 billion of CRH shares over the next 12 months. Looking ahead, CRH said it expects resilient demand and increased pricing in 2023 despite macroeconomic uncertainties and ongoing cost inflation. Alongside the strong set of annual results, CRH announced it will move its primary listing to the US during 2023. ‘We have now come to the conclusion that a US primary listing would bring increased commercial, operational and acquisition opportunities for CRH,’ the company said. CRH said the move would accelerate its integrated solutions strategy, and provide higher ‘profitability, returns and cash’ for shareholders. CRH said it will remain headquartered in Ireland. However, a US primary listing will remove CRH from the FTSE 100 index. ‘In the coming weeks we will outline to our shareholders why we are recommending that it is in the best interests of our business and our shareholders to pursue a primary listing of CRH, together with US equity index inclusion as soon as possible,’ the company said. CRH said it will provide an update with its planned trading statement on April 26. Dublin-based stockbroker Davy said CRH’s 2022 performance was ‘excellent’. It added: ‘To optimise commercial, operational and acquisition opportunities, we see merit and strategic rationale in CRH pursuing a US primary listing.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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