Revenue ahead as Ibstock retains optimism

Clay brick and concrete products manufacturer Ibstock announced its unaudited results for the six months to 30 June on Friday, with group revenue reaching £210.0m compared with £148.9m a year ago, although the comparative period only includes four months’ trading results.

The FTSE 250 firm reported profit before taxation for the period of £37.9m, less than half of the £77.0m in the first half last year.

Ibstock said the comparative result included net exceptional benefits of £51.8m, however, and excluding those gave a comparable profit before taxation of £25.2m.

Earnings per share of 7.4p, down from 31.8p in the first half of last year which included net exceptional benefits and was before an increase in weighted average number of shares arising from pre-IPO share reorganisation.

The board declared an interim dividend of 2.4p per share

“I am pleased to report another robust profit and cash generation performance by Ibstock, combined with excellent progress with our major UK investment projects,” said CEO Wayne Sheppard.

"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.”

Sheppard said it is reassuring that, to date, current trading has continued at normal seasonal levels.

He said contingency plans will enable Ibstock to balance production with sales volumes in the remainder of the year as necessary.

"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 undersupply of new homes,” Sheppard said.

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