(Alliance News) - FTSE 250-listed Ibstock PLC on Tuesday warned on slower start to 2020 amid political and economic uncertainty and reduced new build housing activity in the second half of 2019.
The Leicestershire-headquartered clay bricks manufacturer said pretax profit decreased by 12% to GBP82 million in 2019 compared to GBP93 million a year earlier, due to the non-repeat of a GBP11.2 million gain on disposal of property, plant and equipment secured in 2018.
Revenue, meanwhile, increased by 5% to GBP409 million form GBP391 million, thanks to growth across the company's both Clay and Concrete divisions.
The Clay division performance was supported by mid-single-digit price increases, with volumes marginally below the prior year, Ibstock said.
In the Concrete unit, revenue growth was "good", the company highlighted, driven by stronger sales volumes of roof tiles.
Ibstock declared a final dividend of 6.5 pence a share, taking the total payout for the year to 9.7p, up 2% from 9.5p paid for 2018.
"2019 was a year of progress for Ibstock, as we delivered a resilient trading performance against a backdrop of political and economic uncertainty," said Chief Executive Joe Hudson.
"However, the political uncertainty which caused more subdued market conditions in the second half of 2019 has meant a slower start to 2020. We anticipate that activity levels will improve as the year progresses, and as a result, expect to deliver a stable outcome for the year," added Hudson.
Ibstock shares were trading 1.9% lower in London on Tuesday morning at 275.20p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Ibstock (IBST)