Company issues trading update ahead of preliminary results announcement for year ended 31 December 2016
IBSTOCK plc, manufacturers of clay bricks and concrete products with operations in the UK and the US, say the Group continued to trade as anticipated with adjusted EBITDA in line with expectations and Group revenue up 5% for the year ended 31 December 2016.
According to the company’s latest trading update, revenue from clay and concrete products in the UK, which represents approximately 80% of Group revenue, was up 2% for the full year, compared with 2015, reflecting low single-digit volume growth for clay bricks and further volume and price growth in the concrete businesses.
Meanwhile, revenue in the US was up 18% (4% at constant exchange rates) for the full year, compared with 2015, principally reflecting a combination of higher average prices and the benefits from a more favourable product and end-use sector mix.
During 2016 the Group progressed with the construction of an additional clay brick factory in Leicestershire, which will expand Ibstock’s UK clay brick capacity by around 13%. This project is currently making good progress and will commission in the second half of this year.
Installation of a new concrete roof tile line at the Leighton Buzzard facility was completed within budget and commissioning commenced during August 2016, adding around 5% to UK concrete roof tile market capacity.
Ibstock will announce their preliminary results for the year ended 31 December 2016 on 7 March 2017.