Leicester-based brick maker Ibstock has said it expects to report a rise in revenue when it publishes its full-year results.The listed company, which has operates in the UK and the USA, said revenue increased by 4 per cent in the year to 31 December 2017 while adjusted EBITDA was in line with expectations.
Revenue from clay and concrete products in the UK, which represents approximately 80 per cent of group revenue, was up five per cent compared to 2016.
A statement to the London Stock Exchange said: "The increase in revenue in 2017 reflects mid-single digit volume growth for clay brick and further volume and price growth in the concrete businesses.
"As the year progressed brick markets proved to be stronger than anticipated and volume growth for the year was supported by stock reduction.
"The market for bricks in Great Britain grew through 2017. Domestic manufacturers were unable to meet demand despite reducing their stock levels and consequently import levels rose during the year.
"Against this positive market backdrop, plant commissioning commenced at the group's new soft mud brick factory in Leicestershire which will provide new manufacturing capacity as it increases output progressively during 2018."
When fully commissioned by the end of the year, the new facility will increase Ibstock Brick's existing annualised capacity by approximately 100 million bricks.
The company added that revenue in the US was down two per cent (6 per cent at constant exchange rates) for the full year compared to 2016, because of a more competitive new build residential market impacting volume in some regions and a less favourable product mix.
The group will announce its preliminary results for the year ended 31 December 2017 on 6 March 2018.
Source Insider
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