CRH to switch listing to London

CRH is to switch its primary share listing from Dublin to London in order to more accurately reflect its investor base.

As much as 90% of the Dublin-headquartered building materials giant’s shareholders are based outside Ireland; 55% of shares are traded in London, with only 20% traded in Dublin — a gap that is growing.

CRH chief executive Myles Lee said the move is “a logical progression” given the international nature of the group’s business.

“We believe that these listing arrangements are in the best long-term interests of CRH and will increase the group’s attractiveness to a wider international investor base,” he said.

CRH’s primary listing will switch from Dublin’s ISEQ to the main London Stock Exchange (currently ranked as the group’s secondary listing) on December 6. However, CRH will continue to report its financial results in euro and will remain headquartered, incorporated and tax-resident in Ireland.

CRH also issued its latest trading update yesterday — a week ahead of schedule — showing 4% year-on-year sales growth in the third quarter.

However, EBITDA (earnings before interest, tax, depreciation and amortisation) on a constant currency basis was down by 5%.

Sales in its North American division were up 3% year-on-year, with European sales rising by the same rate, but with growth there slowing.

The group said that weather permitting, EBITDA in the fourth quarter should amount to around €400 million, broadly in line with the same period last year.

Overall, full-year EBITDA should be flat at €1.6 billion, but both pre-tax profits and earnings per share — which, respectively, came in at €534m and 61.3c last year — are expected to be “well ahead” of 2010 figures.

Analysts remain relatively upbeat. Goodbody said that while the third-quarter figures were disappointing — especially coming after a strong first half showing — CRH is still outperforming its peers. Davy, meanwhile, said it is likely to lower its full-year earnings per share forecasts for the group, but noted that CRH’s net debt is likely to be down to €3bn by the end of the year.

CRH was the main climber on the ISEQ, yesterday, gaining by 50c — or 3.95% — to €13.02.