Strong brick demand boosts profit at Ibstock
Company reports 31% increase in pre-tax profit for the six months ended 30 June 2018
IBSTOCK plc, one of the UK’s leading manufacturers of clay bricks and concrete products with operations in the UK and the US, have reported a 30.8% increase in pre-tax profit, to £50.9 million, on revenue that was up 0.7% to £229.9 million for the six months ended 30 June 2018. Compared with the same period in 2017, adjusted EBITDA declined by 2.2% to £58.4 million in the first half, reflecting the weather-impacted start to this year and increased energy input costs.
According to Ibstock, UK clay benefitted from good activity levels within the UK, particularly from the new-build housing sector, but UK concrete revenues were flat year on year, reflecting both the impact of the cold weather in the early part of the year and lower activity levels in the repair, maintenance and improvement (RMI) market. US performance was down marginally year on year but with improved momentum going into the second half of 2018.
Joe Hudson, Ibstock’s chief executive officer, commented: ‘Demand from the Group’s UK brick customers was strong over the first half, particularly from the new-build housing sector, although our performance also reflected some impact from poor weather and increased energy costs. Overall, market fundamentals remain favourable and Ibstock are well placed to benefit from this positive backdrop. We are fully focused on delivering our business plan as we trade through the second half.’