Ibstock Continues Good Momentum in 2016
Ibstock plc recently provided a trading update for the four months ended April 30, 2016.
Ibstock plc recently provided a trading update for the four months ended April 30, 2016. After a strong trading performance in 2015, Ibstock reportedly has shown good trading momentum in the first four months of 2016.
UK brick sales in the key new residential sector grew, but the UK clay business overall made a slower start to the year than expected due to destocking in the builders merchant supply chain, which primarily services the RMI market. Monthly trading comparatives have steadily improved and have now moved positive, while anticipated mid-single-digit headline price increases have been achieved by sales channel. The change in channel mix during the first quarter has impacted overall average pricing. It is anticipated that the channel mix will see further improvement as the year progresses.
The U.S. clay business and the UK concrete businesses have maintained the good start to the year reported in March, driven by favorable weather and a recovering housing market in the U.S. and by strong demand for concrete products in the UK. Ibstock’s organic growth investment projects in UK clay brick and concrete roof tile manufacturing capacity reportedly are also progressing well, remaining on time and on budget.
Market fundamentals remain positive in both the UK and U.S., with demand for new housing remaining robust. The board expects another year of progress for the group and its expectation for the full year is broadly unchanged.
For more information, visit www.ibstockplc.com.