Ibstock PLC on Wednesday said it remains well-placed to deliver on its medium-term financial targets, as it saw yearly revenue increase in spite of a challenging final quarter.
The Leicestershire, England-based manufacturer of clay and concrete building products expects full-year revenue of £510 million for 2022, up 25% from £409 million the year prior.
Adjusted earnings before interest, tax, depreciation and amortisation are expected to be moderately ahead of previous expectations.
Cash generation is also anticipated ahead of expectations, resulting in net debt at December 31, 2022 of around £46 million, from £39 million in 2021 following growth capital investments of over £35 million, and a £30 million share buyback.
Ibstock noted that, as expected, sales volumes dropped in the fourth quarter across both new builds and repairs, maintenance and improvement activity, reflecting a more cautious demand environment.
The company attributed its ‘solid margin performance’ during the period to its focus on dynamic pricing, as well as disciplined cost management.
Looking ahead, Ibstock Futures has continued to develop its brick slips strategy, underpinned by an initial investment of £8 million in 2023 in automated line ahead of the Nostell factory development.
While the company expects conditions in the year ahead to be more challenging, it emphasised that it is ‘well positioned’ to capitalise on market opportunities, and remains confident in its ability to deliver against medium-term financial targets.
‘The strong performance achieved in 2022 reflects the strategic progress we have made as a business over recent years. Our balance sheet is strong, we continue to make good progress towards our ambitious 2030 ESG targets, and our growth investments in both the core business and Ibstock Futures are progressing well. We are particularly excited about the prospect of producing the UK’s first net zero carbon brick at our redeveloped Atlas factory before the end of this year,’ said Chief Executive Officer Joe Hudson.
Ibstock will announce its full year results on March 8, 2023.
Company shares were trading 0.2% higher at 165.82 pence each in London on Wednesday morning.
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