Ibstock report strong revenue growth in 2018
Year of profit growth and cash generation as company focuses its business on the UK market
BENEFITTING from good activity levels within the UK new-build housing sector, Ibstock plc saw pre-tax profit rise 19.1% to £92.5 million for the full year to 31 December 2018 (2017: £77.7 million). Revenue for the year increased by 7.9% to £391.4 million (2017: £362.6 million) and adjusted EBITDA was up 4.1% to £112.4 million (2017: £107.9 million).
Last year also saw the Group’s structure simplified with the disposal of US brick business Glen-Gery for US$110 million. Ibstock are now focused on the UK, with two businesses with leading positions in the brick and concrete markets. The company’s new Eclipse brick factory in Leicester performed well and contributed to volume growth in the second half of 2018.
Joe Hudson (pictured), chief executive officer of Ibstock plc, commented: ‘2018 was a busy year of development for Ibstock, and we are pleased to be announcing profit growth and cash generation in line with management’s expectations.
‘Two strategic milestones were achieved during the year. First, we commissioned our new 100 million capacity brick-making factory in Leicestershire, adding significant new capacity to our UK brick operations. Secondly, we also took the decision to dispose of Glen-Gery, our US brick-manufacturing business, to focus the Group on the UK market, where we have leading positions.
‘With our business structure now simplified and with a clear strategic focus on the UK…we will maintain our disciplined approach to investment and capital allocation, and our strong balance sheet gives us the opportunity to invest to grow, either organically or by selective acquisition.
‘Whilst we remain mindful of the current political and economic uncertainties in the UK, we are well positioned, with market fundamentals that remain encouraging for the medium term, and look forward to another year of progress for the Group.’