(Alliance News) - Ibstock PLC on Wednesday reported a swing to profit for the first half as the company continued its recovery from the Covid-19 pandemic.
Pretax profit for the six months ended June 30 was GBP39 million, swinging year-on-year from a loss of GBP52 million.
The brick & concrete products manufacturer posted revenue of GBP202 million, up 54% from GBP131 million.
The company took restructuring actions in 2020, with "good fixed cost discipline maintained across the business ensuring that the expected cost savings were captured in full." However Ibstock anticipates a proportion of these savings to be added back over the next 12 months to support volume growth as its recovers from the lower demand levels experienced during 2020.
Ibstock declared a dividend of 2.5 pence per share, compared to the same period when last year when the company decided against a payout. In 2019, it paid an interim dividend of 3.2p.
"We delivered a strong performance for the first half, supported by the UK construction sector's continued recovery from the period of peak pandemic impact. Underlying market fundamentals remained robust, backed by demand for new housing, and we have captured the benefits of last year's restructuring and re-focused on growth opportunities," said Chief Executive Joe Hudson.
"We are carrying good momentum into the second half and now expect adjusted earnings before interest, tax, depreciation and amortization for the year to be modestly ahead of previous expectations, although we are mindful of continuing risks to the UK's economic recovery, and the potential short-term impact of supply chain disruption and inflation on our sector," Hudson added.
Shares in Ibstock were down 0.7% at 219.40 pence in London early Wednesday.
By Amrit Sahota; newsroom@alliancenews.com
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Ibstock (IBST)