Ibstock deliver robust first-half performance
Company achieves strong growth in revenue while investing in UK capacity to meet increasing demand
IBSTOCK plc, a leading manufacturer of clay bricks and concrete products with operations in the UK and the US, have announced strong growth in revenue and adjusted EBITDA in their unaudited results for the first half (H1) of 2017.
For the six months ended 30 June, revenue was up 8.7% to £228.3 million (H1 2016: £210.0 million, and adjusted EBITDA was up 7.4% to £59.7 million (H1 2016: £55.6 million). Pre-tax profit for the first half was up 2.7% to £38.9 million (H1 2016: £37.9 million).
Wayne Sheppard, chief executive officer of Ibstock plc, commented: ‘The Group has delivered a robust first-half performance. UK brick volumes were well ahead, driven by good activity levels in the UK new-build housing sector and our concrete businesses also enjoyed solid growth.
‘Against this backdrop of continued robust demand we are investing in the UK clay business to increase capacity. Our new brick factory in Leicestershire will begin commissioning in the final quarter of this year, with production to build progressively across 2018.
‘When operating at its full capacity of 100 million bricks per annum it will expand UK domestic brick production by 5%, adding a much-needed new source of supply. A second project – to increase capacity at our blue brick plant at Cannock – is also on track.’
Looking ahead, Mr Sheppard said that although the longer-term fundamentals underpinning the new-build housing market in the UK – government support, good mortgage availability and an undersupply of new homes – remained in place, the company continued to be alert to any changes in customer confidence stemming from political uncertainty after the recent General Election result and the ongoing Brexit negotiations.
He added: ‘The Group remains strongly cash generative, we are investing for further growth, and our expectations for another year of progress are maintained.’