9th Aug 2018 08:33
LONDON (Alliance News) - FTSE 250-listed brick maker Ibstock PLC hiked its interim dividend and announced a special payment Thursday after its profit jumped a third amid strong UK demand for its products.
For the six months ended June, pretax profit jumped 31% to GBP50.9 million from GBP38.9 million the year prior as after revenue rose 0.7% to GBP229.9 million from GBP228.3 million the year before.
Profit performance was helped by an GBP6.4 million exceptional gain on a disposal of a quarry in Bristol, and Ibstock was also helped by a GBP6.4 million loss reported the year prior as a result of exceptional finance costs on the restructuring of its debt not being repeated in the current year.
Ibstock hiked its interim dividend per share to 3.0 pence, up 15% from 2.6p the year prior. It also announced a 6.5p supplementary dividend from nothing the year before, having promised extra payouts at the time of its 2017 results.
"Demand from the group's UK brick customers was strong over the first half, particularly from the new build housing sector, although our performance also reflected some impact from poor weather and increased energy costs," Chief Executive Joe Hudson said.
"The group remained strongly cash generative in the period and we are pleased to be declaring both an increased interim dividend and our first supplementary dividend, in line with the policy announced in March."
Hudson said its plans to up maintenance spending in UK manufacturing will have a short-term financial impact, but will leave its UK Clay business in a strong position.
"Overall, market fundamentals remain favourable and Ibstock is well-placed to benefit from this positive backdrop," Hudson continued. "We are fully focused on delivering our business plan as we trade through the second half."
Shares in Ibstock were 2.5% higher at 246.00 pence in early trading Thursday.
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