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Ibstock's revenue and profit increase as new build demand offsets weather impacts

“Overall, market fundamentals remain favourable and Ibstock is well-placed to benefit from this positive backdrop"
construction worker, bricks
In July, Ibstock warned that bad weather would have a negative impact

Ibstock PLC (LON:IBST) told investors that demand was strong from UK brick customers through the first half of 2018, boosted by activity in the new build housing sector but offset by the poor weather in the early spring period.

The clay bricks and concrete firm has reported a 0.7% increase in revenue to £229.9mln over the six months ended June 30, up from £228.3mln in the same period last year.

Pre-tax profit rose 30% to £50.9mln, from £38.9mln. Earnings (adjusted EBITDA), meanwhile, reduced 2.2% to £58.4mln from £59.7mln.

READ: Ibstock warns earnings will be hit by Beast from the East

Ibstock raised its interim dividend by 15.4% to 3p per share, from 2.6p.

"Looking ahead, while our decision to increase maintenance spending on our UK brick manufacturing assets will have a short-term impact on our financial performance, this programme will put our UK Clay business in a much stronger position to meet ongoing demand, which continues to be robust, with domestic production remaining below market need,” said Joe Hudson, Ibstock chief executive.

He added: “Overall, market fundamentals remain favourable and Ibstock is well-placed to benefit from this positive backdrop. 

“We are fully focused on delivering our business plan as we trade through the second half."

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