Ibstock announce interim results

Company reports robust profit and cash generation for six months ended 30 June 2016

IBSTOCK, a leading manufacturers of clay bricks and concrete products with operations in the UK and the US, have announced that trading for the first half (H1) of 2016 was in line with expectations set at the company’s AGM in May.

For the six months ended 30 June 2016, group revenue was up 3.3% to £210.0 million (H1 2015: £203.4 million) and adjusted EBITDA was up 7.3% to £55.6 million (H1 2015: £51.8 million).

Ibstock said its UK clay business saw the benefits of good activity levels from the new-build housing sector more than offset by previously announced brick destocking by UK merchants/distributors, and that following the EU Referendum, like-for-like July brick volumes were at the same levels as 2015.

Concrete products also performed well, particularly in the domestic landscaping repair, maintenance and improvement sector.

Wayne Sheppard, Ibstock’s chief executive officer, commented: ‘I am pleased to report another robust profit and cash-generation performance by Ibstock, combined with excellent progress with our major UK investment projects.

‘The EU Referendum result has added uncertainty to our outlook but, in advance of the important autumn period for new home sales, it remains too early to judge its full impact.

‘It is reassuring, however, that, to date, current trading continues at normal seasonal levels.  Contingency plans will enable us to balance production with sales volumes in the remainder of the year as necessary.’

He continued: ‘The fundamentals supporting the UK housing market remain in place. The sector continues to receive focused government support, mortgage availability is good and there remains an under-supply of new homes.

‘Our businesses are well prepared for the challenges and opportunities that our markets may present and we look to the future with confidence.’