(Alliance News) - Shares in Ibstock PLC rose on Wednesday after the company lifted its interim dividend due to a jump in profit on strong demand across its end markets.
Ibstock shares were trading 6.9% higher in London on Wednesday morning at 191.84p each.
The FTSE 250-listed manufacturer of clay bricks and concrete products reported a pretax profit of GBP51 million for the first half of 2022.
This reflects a 32% increase from GBP39 million a year before and was enabled by revenue growth of 28% to GBP259 million from GBP202 million.
The company credited its performance to robust demand across its new build residential, Repairs, Maintenance and Improvement, and infrastructure markets.
Further, it cited a strong operational performance and a focus on cost management as reasons for its strong results.
"We continue to manage inflation and supply chain pressures well and are making good progress with our strategic development plans, with investments in new capacity progressing well, and good momentum in Ibstock Futures, as we focus on the delivery of our ambitious medium term financial targets," Chief Executive Joe Hudson commented.
Ibstock declared an interim dividend of 3.3 pence per share, representing year-on-year growth of 32% from 2.5p.
Looking ahead, Ibstock said it expects adjusted earnings before interest, taxes, depreciation and amortization to be modestly ahead of its previous expectations.
"Our market backdrop remains encouraging in the early weeks of the second half - demand is firm, asset utilisation is high and industry inventories remain low - and the strong first half performance gives us confidence in the full year outcome," CEO Hudson said.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Ibstock (IBST)