Ibstock report strong growth in 2017

Group overcomes challenges to deliver strong financial performance while investing in new capacity

IBSTOCK plc, a leading manufacturer of clay bricks and concrete products with operations in the UK and US, have reported strong growth in revenue and adjusted EBITDA, in line with management expectations, in their preliminary results for the full year ended 31 December 2017.

Despite a slowdown in US performance throughout much of last year, good activity levels within the UK new-build housing sector and continued growth in UK concrete saw Group revenue increase by 3.9% to £451.6 million (2016: £434.7 million), whilst adjusted EBITDA was up 7.1% to £119.6 million (£111.6 million) and adjusted pre-tax profit rose by 12.1% to £88.3 million (£78.8 million).

Investment in additional UK brick capacity to meet growing demand saw Ibstock’s new 100 million capacity brick plant in Leicestershire commence commissioning in the fourth quarter of 2017. This facility will expand the company’s UK brick capacity by around 13% when it reaches full production in 2019.

Wayne Sheppard, chief executive officer of Ibstock plc, said that while 2017 had presented many challenges, the Group performed strongly during the year, delivering profits and cash generation in line with management’s expectations.

‘For Ibstock in the UK it was a busy and important period of development,’ he commented. ‘Our past decisions to invest in additional brick and roof tile capacity, having recognized the strong fundamentals supporting UK new housing growth, have been well timed as these projects enter the production phase. We began 2018 with new capacity in place at a time when it is clearly much needed to support strong market demand.’

Looking ahead to the rest of this year, he added: ‘Customer demand in our UK clay and concrete markets remains encouraging and while we remain mindful of the uncertainties in the UK economy, we expect another year of progress for the Group.’