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(Alliance News) - Ibstock PLC on Wednesday reported a profit for the first half of 2019 due to higher costs, and a one-off gain on disposals in the same period in 2018, despite a rise in revenue.
Also, the FTSE 250-listed brick maker said it has acquired precast concrete supplier Longley Concrete for GBP14 million. The acquisition will be financed from Ibstock's existing facilities and Longley will become part of the group's Concrete segment.
For the six months to the end of June, Ibstock posted a pretax profit of GBP40.9 million, down 17% from GBP49.6 million the year.
The drop reflected profit made in the first half of 2018 on the sale of a quarry in Bristol for GBP6.4 million, as well as higher administrative expenses at GBP19.7 million from GBP16.0 million.
Revenue grew by 6% to GBP203 million, from GBP192 million the prior year, driven by strong performances in both its Clay and Concrete divisions.
The Clay division's revenue grew by 6% year-on-year to GBP150.9 million, on stable market conditions and a price rise at the start of the period.
Meanwhile the Concrete business saw revenue rise by 5% to GBP52.4 million, due to higher roofing sales, despite softer infrastructure markets.
Ibstock declared an interim dividend of 3.2 pence per share, up 7% from 3.0p the year before, and also announced a supplementary dividend of 5.0p, down from 6.5p paid the prior year.
Looking ahead, Ibstock said with overall market fundamentals in the UK beings stable, its board anticipates a further year of progress for the group, with full-year expectations remaining unchanged.
"Our financial strength and cash flow generation provide a platform to invest for growth and create long term value for our shareholders. We are pleased to be announcing today the acquisition of Longley Concrete, a highly complementary addition to our concrete business. At the same time, we confirm our intention to pay a supplementary dividend for 2019, demonstrating our commitment to shareholder returns and our confidence in the underlying strength of the business," said Chief Executive Officer Joe Hudson.
Shares in Ibstock were down 1.2% at 228.00 pence on Wednesday.
