Ibstock Share News (IBST)

(ShareCast News) - Booming brick sales led to a sturdy 9% rise in 2015 revenues at building materials maker Ibstock.The company said it expected adjusted earnings before interest, tax, depreciation and amortisation to be in line with expectations.Revenue from clay and concrete products in the UK, which represents approximately 80% of Group revenue, was up 9% for the full year compared to 2014."The growth in revenue in 2015 primarily reflects a stronger pricing environment for clay bricks. Despite the release and reduction of brick stocks by some housebuilders and distributors, total UK industry brick demand continued to exceed estimated annual domestic production capacity during the year," Ibstock said in a trading statement.Clay product revenue increased by 13% on the equivalent period in 2014, but concrete product revenues in 2015 were 1.5% lower than 2014, with increased revenue in new build housing related products - including roof tiles - outweighed by lower activity in fencing related products and rail products - where projects have been delayed.Ibstock said revenues from US operations were up 10% for the full year compared with 2014 reflecting a combination of rising volumes and higher average prices which include the benefit from a more favourable product mix.The company started building an additional clay brick factory in Leicestershire, England - which will expand Ibstock's UK clay brick capacity by around 13% - and the installation of a new concrete tile line at the Leighton Buzzard facility, which will broaden the Group's concrete tile product range."Both projects are progressing in line with expectations, with the concrete tile line expected to be operational in the second half of 2016 and the additional brick factory expected to commence commissioning in the second half of 2017," Ibstock said."Price negotiations for 2016 with all our major UK brick customers have now been concluded and are in line with management expectations."