Tuesday 20 February 2018

CRH flees Dublin market for London

When writing in these pages on October 30 "what future, if any, does the Irish Stock Exchange now have?", even I couldn't have foreseen that within a fortnight, CRH, Ireland's largest industrial company, would announce that it was moving its primary listing to London.

The effective loss of CRH represents a further stage in the hollowing-out process that has been going on since at least the bursting of the property-driven banking bubble in the second quarter of 2007.

The news that CRH was switching its primary listing to London -- where its shares will be traded in sterling and the company hopes to be included in the benchmark FTSE-100 index -- came as the group revealed that EBITDA (earnings before interest, taxation, depreciation and amortisation) for the first nine months of the year would be similar to last year's €1.2bn and that full-year EBITDA would be about €1.6bn, also unchanged from last year.

The announcement had little impact on the CRH share price, which was broadly unchanged at just over €13, valuing the company at €9.4bn, which with forecast year-end debts of less than €3.5bn gives an enterprise value of less than €13bn.

If chief executive Myles Lee doesn't get the finger out and execute a major acquisition soon, he may find a predator does the job for him, no matter where his shares are traded.

Sunday Indo Business

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business