Stable market conditions, a new factory and a new acquisition have helped fuel growth at Britain’s biggest brick maker.
Ibstock, the Leicestershire-based brick and concrete manufacturer, said revenues topped £203 million in the first half of 2019, compared to £192 million a year earlier.
Pre-tax profits, however, were down 17 per cent to £41 million, after they were inflated last year by the £6 million the sale of surplus property. A higher tax rate has also hit profits.
Meanwhile, , said its turnover was up 7.6 per cent for the same period, at £193.6 million.
Its pre-tax profits were marginally up at £32.7 million.
Ibstock growth has been helped by a £55 million factory it opened in north west Leicestershire last year capable of making 100 million bricks a year.
Called Eclipse, the “soft mud brick” factory is reported to be “performing well and supporting industry demand”.
The business also said that it has bought Yorkshire-based Longley Concrete for £14 million. The precast concrete business has three manufacturing plants in the UK.
It is said to be “highly complementary” to Ibstock’s existing concrete operations and will support future growth.
Announcing interim results for the six months to June 30, Ibstock chief executive Joe Hudson said: “I am pleased to report a solid first half performance for the group and good progress with our strategic initiatives.
“Our financial strength and cash flow generation provide a platform to invest for growth and create long term value for our shareholders.
“We are pleased to be announcing the acquisition of Longley Concrete, a highly complementary addition to our concrete business.
“At the same time, we confirm our intention to pay a supplementary dividend for 2019, demonstrating our commitment to shareholder returns and our confidence in the underlying strength of the business.
“Overall, market fundamentals in the UK are stable, with low interest rates, high employment levels, good mortgage availability and the Government’s Help to Buy scheme all remaining supportive.
“This should continue to underpin activity levels in the new build housing market over the medium term. In the short term, we are cognisant of the ongoing macroeconomic uncertainty in the UK, and note that there has been some slight softening in the merchant sector in recent weeks.
“Nonetheless, the board anticipates a further year of progress for the group and our full year expectations remain broadly unchanged.”
Forterra, is investing almost £100 million building Europe’s biggest brick factory a couple of miles from Ibstock’s head office.
The state-of-the-art plant, west of Leicester, will be capable of firing up to 180 million bricks a year when it is finally gets operational in 2022.
Forterra is replacing its existing factory at its Desford site with a vast new shed housing two massive kilns, more than doubling production.
Chief executive Stephen Harrison said the £95 million plant will be the biggest in Europe, producing enough bricks each year to build 22,500 homes.
