Ibstock ups dividend after weathering H1 storm

Ibstock on Thursday that its first half performance was boosted by activity in the new build housing sector but offset by the poor weather in the early spring period.

For the six months ended 30 June, the brick and concrete product manufacturer reported a 0.7% increase in revenue to £229.9m, as UK clay revenue increased by 4% to £142m but UK concrete revenues were flat at £50m after being impacted by the aforementioned poor weather.

The US business, which accounted for 17% of group sales, decreased by 10% to £38m but saw only a marginal decline on a constant currency basis.

Overall pre-tax profit rose 30% to £50.9m, while adjusted EBITDA fell by 2.2% to £58.4m and net debt was cut by 15% compared to the same point last year, settling at £135.9m at 30 June.

Joe Hudson, chief executive of Ibstock, said: "The group remained strongly cash generative in the period and we are pleased to be declaring both an increased interim dividend and our first supplementary dividend, in line with the policy announced in March."

The London-listed company raised its interim dividend by 15.4% to 3p per share while introducing a supplementary dividend of 6.5p.

"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 Hudson.

Hudson added that US business Glen Gery enters the second half of the year with its order book ahead of the prior year and showing good momentum for the remainder of the year.

Ibstock’s shares were up 1.67% at 244.00p at 1106 BST.