UK brick manufacturer Ibstock’s interim results showed strength in the face of industry-wide inflation and supply-chain issues.
Underlying earnings increased 29% to £71mln, while earnings per share (EPS) rose 43% to 11.3p.
Interim dividends increased by 32% to 3.3p, representing a yield of 1.8% against the current share price of 182.5p.
Net debt was £36mln at the end of the interim period, representing a six-month reduction of 33%.
Growth was primarily driven by the clay brick segment, which saw a 5% capacity uptick in the period.
Chief Executive Officer Joe Hudson stated: "I am very pleased with the group's first-half performance, delivering profit and cash both significantly ahead of the prior period, supported by sustained robust demand across all our end markets and good operational execution.”
From the analysts
Equities analysts at Peel Hunt reacted positively to Ibstock’s “healthy improvement” with a 7% boost to end-of-year EPS forecasts, noting robust volumes and a full recovery of cost pressures.
Profit-before-tax (PBT) estimates have increased by 4%, though remain unchanged for the 2023 outlook.
“The second half has started well and the group has good order visibility, while progress on the new plants is going well,” said Peel Hunt.
IBST shares rose by 6.8% following the announcement.