Ibstock report solid first-half performance
Company pleased with half-year performance and progress on strategic initiatives
IBSTOCK plc, one of the UK’s leading manufacturers of clay bricks and concrete products, have reported a solid overall performance for the six-month period ended 30 June 2019.
In their unaudited interim statement, Ibstock said the results were in line with expectations, with revenue up 6% to £203 million (H1 2018: £192 million), adjusted EBITDA up 8% to £59 million (£55 million) and pre-tax profit down 17% to £41 million (£50 million).
Among the operational highlights in the first half of 2019, the company said its new Eclipse soft-mud brick factory in Leicestershire was performing well and supporting industry demand, whilst its enhanced maintenance programme in the UK brick business had progressed well.
In addition, the £14 million acquisition of Longley Concrete, a precast concrete business with three plants in the UK, was said to be highly complementary to Ibstock’s existing concrete operations and would support future growth of the division.
Joe Hudson (pictured), chief executive officer of Ibstock plc, commented: ‘I am pleased to report a solid first-half performance for the Group and good progress with our strategic initiatives. Our financial strength and cash flow generation provide a platform to invest for growth and create long-term value for our shareholders.
‘Overall, market fundamentals in the UK are stable, with low interest rates, high employment levels, good mortgage availability and the Government’s Help to Buy scheme all remaining supportive. This should continue to underpin activity levels in the new-build housing market over the medium term.
‘In the short term, we are cognisant of the ongoing macroeconomic uncertainty in the UK and note that there has been some slight softening in the merchant sector in recent weeks. Nonetheless, the board anticipates a further year of progress for the Group and our full-year expectations remain broadly unchanged.’