Brick maker Ibstock has reported healthy pre-tax profits in its first financial results announcement since its October 2015 stock market listing.
Statutory revenue was £358.3m and statutory profit before tax was £94.7m in the period from 28th November 2014 to 31st December 2015. Adjusted revenue for the year ended 31st December 2015 was £412.8m (2014: £373.2m) and adjusted EBITDA was £107.0m (2014: £65.0m).
In February 2015 Ibstock Group, comprising Forticrete, Supreme, Ibstock Brick and Glen-Gery, was sold by CRH to Bain Capital before floating on the London Stock kExchange in October 2015.
The UK businesses, which account for 81% of the group (19% is in the USA), saw revenue increase 9.0% to £336m and adjusted EBITDA up 71% to £99.0m.
“This improvement in revenue and profitability reflects a strong pricing environment for clay bricks and good pricing for other products,” said chief executive Wayne Sheppard. “Despite the release and reduction of brick stocks held by some housebuilders, total UK industry brick demand continued to exceed reported annual domestic production during the year.”
With 19 manufacturing plants Ibstock Brick has the largest brick production capacity in the UK. It also operates 23 active quarries. Ibstock Brick has begun construction of a new stock brick manufacturing plant in Leicestershire that is expected to add approximately 100 million bricks to its annual brick production capacity – a 13% increase. This new plant is expected to be commissioned in the second half of 2017.
Ibstock has also invested in a new concrete roof tile line at Forticrete’s Leighton Buzzard facility, which is expected to be commissioned during the second half of 2016.
Wayen Sheppard said: “Our major capital investment projects are progressing to plan and we anticipate another year of progress in 2016. The fundamentals supporting our business remain strong.”
This article was published on 10 Mar 2016 (last updated on 10 Mar 2016).