CRH profit stays at £21m

CRH, the Irish-based materials group that has grown rapidly in recent years, made an operating profit of £21m in the UK in the first half of 2003, exactly the same as in the comparable period last year.

UK turnover was slightly ahead at £238m (£231m). Profits were hit by the 9% strengthening in the value of sterling against the euro, the currency in which CRH trades.

Ibstock's first-half brick volumes were broadly in line with 2002 while prices moved ahead. The underlying profit from CRH's concrete and insulation activities also improved.

After a period of prolonged growth, CRH's group turnover dipped slightly in the first half of 2003, easing back 3% to £3.3bn, though CRH continues to push its boundaries forward. Now with a global presence, CRH spent £400m during the period on 20 deals.

Since the half-year, CRH reports that its UK market has softened slightly but further Ibstock price increases should strengthen profits in coming months.

The strengthening of the euro against both the dollar and sterling is expected to knock a £54m hole in CRH's full-year group profit.