UK: Ibstock brick maker building up healthy sales

The UK's largest and oldest brick manufacturer recorded a healthy rise in sales in the year it floated on the London Stock Exchange.

County brick maker Ibstock, valued at £770.5 million in its October listing, said group revenue for the 12 months to the end of December rose 9 per cent, with sales up 7 per cent in the second half compared to the same time last year.

In a statement, the company predicted its full-year earnings would be "in line with expectations".

The sale of clay bricks and tiles increased by 13 per cent, compared to the previous year, although concrete products proved less popular with 2015 sales down 1.5 per cent on the previous year.

The company said increased revenue from new-build housing-related products, such as roof tiles, was outweighed by lower sales of fencing-related products and rail products, where projects have been delayed.

Ibstock said its US business continued to enjoy strong growth with 2015 sales up 8 per cent after adjusting for exchange rate differences. This was the result of rising volumes and higher average prices.

Last year, the company started work on an additional clay brick factory in Leicestershire, which will expand Ibstock's UK clay brick capacity by around 13 per cent.

It also installed a new concrete tile line at its Leighton Buzzard facility, which will broaden the group's concrete tile product range.

Ibstock chief executive Wayne Sheppard said: "It was another year of progress for Ibstock with further growth in revenue in both the UK and US.

"Underlying UK brick demand continues to exceed domestic manufacturing capacity and we are working to address this, with a new factory in Leicestershire.

"Against a positive demand backdrop, especially in new build housing and a supportive UK Government, the board expects another year of growth in 2016."

The company has the capacity to make 780 billion bricks a year.

This will increase by 100 million by the end of 2017 – enough to build 15,000 detached homes and garages – when the company's new £50 million factory just outside Ibstock goes into production. The move will create 50 jobs.

At present, it employs 350 people in Leicestershire.

Source Leicester Mercury par Lauren Mills