Ibstock Sees 5% Revenue Increase in 2016
Ibstock plc recently announced a trading update for the year ending December 31, 2016.
Ibstock plc recently announced a trading update for the year ending December 31, 2016. Group revenue for 2016 was up 5%. Net debt declined compared to the prior year despite significant spending on major projects and reportedly was in line with management expectations. Ibstock continues to trade as anticipated with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in line with expectations. Price negotiations for 2017 with all major UK brick customers have been concluded and are in line with management expectations.
Revenue from clay and concrete products in the UK, which represents approximately 80% of revenue, was up 2% for the full year compared to 2015. The increase in revenue in 2016 reflects low-single-digit volume growth for clay brick and further volume and price growth in the concrete businesses. Despite the release of brick inventory by distributors, particularly in the first half of the year, brick sales volumes for the full year exceeded 2015. Growing house-building activity supported a stronger second half, and national brick imports declined significantly over the year. Revenue in the U.S. was up 18% (4% at constant exchange rates) for the full year compared to 2015, reflecting a combination of higher average prices and the benefits from a more favorable product and end use sector mix.
During 2016, Ibstock reportedly progressed with the construction of an additional clay brick factory in Leicestershire, UK, which will expand its clay brick capacity by 13%. This project is making good progress and will be commissioned in the second half of this year. Installation of a new concrete roof tile line at the Leighton Buzzard facility was completed within budget and commissioning commenced during August 2016, adding 5% to the UK concrete roof tile market capacity.
For more information, visit www.ibstock.com.