Ibstock Revenue Increases Nearly 4% in 2017
Ibstock’s revenue in 2017 increased by 3.9% to reach £451.6 million (approximately $629.2 million).
Ibstock plc recently announced its preliminary results for the year ended December 31, 2017. Revenue in 2017 increased by 3.9% to reach £451.6 million (approximately $629.2 million). “2017 presented many challenges to the group, but we performed strongly during the year, delivering profits and cash generation in line with management’s expectations,” said Wayne Sheppard, CEO. “For Ibstock in the UK, it was a busy and important period of development—our past decisions to invest in additional brick and roof tile capacity, having recognized the strong fundamentals supporting UK new housing growth, have been well timed as these projects enter production phase. We began 2018 with new capacity in place at a time when it is clearly much needed to support strong market demand.
“In addition, recognizing our robust balance sheet and strong cash generation, we are pleased to provide further detail on our capital allocation strategy to shareholders with the introduction of a supplementary dividend policy, with the first such payment currently expected to be confirmed at the interim results in August. Customer demand in our UK clay and concrete markets remains encouraging and, while we remain mindful of the uncertainties in the UK economy, we expect another year of progress for the group.”
According to the company, operational highlights for 2017 include:
- Ibstock Brick benefitting from good activity levels within the UK new build housing sector with brick volumes ahead year-on-year supported by stock reductions
- Continued growth in UK Concrete
- Investment in additional UK brick capacity to meet demand
- New 100-m capacity brick plant in Leicestershire commenced commissioning in the fourth quarter of 2017 and will expand the group’s UK brick capacity by approximately 13% when in full production in 2019
- Replacement of the brick kiln at the Lodge Lane blue brick plant in Cannock on schedule, with commissioning well advanced
- New roof tile project at Forticrete now completed with good demand take-up from major housebuilders
- U.S. performance down year-on-year with a slowdown evident from the spring continuing through the second half of 2017
- Joe Hudson joined the group as CEO Designate in January 2018 and will take up the CEO post as part of an orderly succession process
For more information, visit www.ibstockplc.com.