The manufacturer of clay bricks and concrete products made a pre-tax profit of £39 million compared to a loss of £52m a year before on revenue that was up 54 per cent from £131m to £202m.
Ibstock said it had been a strong operating performance with revenue approaching pre-pandemic 2019 levels
The group said demand in the initial weeks of the second half of its financial year has remained robust, although supply chain challenges, principally relating to freight availability and the impact of Covid constraints on factory labour, have become more evident
Chief executive Joe Hudson said the strong performance was supported by the UK construction sector's continued recovery from the period of peak pandemic impact.
"Underlying market fundamentals remained robust, backed by demand for new housing, and we have captured the benefits of last year's restructuring and re-focused on growth opportunities.
"The £60 million investment in the redevelopment of our clay brick facilities in the West Midlands will expand our capacity significantly from early 2024, consolidating our leadership position in the clay brick market. It will also demonstrate our commitment to leading our industry on sustainability issues, producing the UK's first net-zero carbon bricks, an innovation that is already generating significant customer interest," he added.
Ibstock now expects adjusted earnings before tax for the year will be modestly ahead of previous expectations, although it is mindful of continuing risks to the UK's economic recovery, and the potential short-term impact of supply chain disruption and inflation on the sector.
Ibstock Clay is the leading manufacturer by volume of clay bricks sold in the UK with 16 manufacturing sites – including one at Lodge Lane, Cannock – and a network of 18 active quarries located close to its manufacturing plants.
It plans to create 30 new jobs at the Atlas Factory on Stubbers Green Road, Aldridge, to help meet a growing need for the building industry across the UK.
If Walsall Council planners approve the proposal, it would see the company expand its brick-making output from 40 million bricks a year to 105 million.
Works will involve extending the brick factory and refurbishing it with new plant machinery, as well as changes to the car parks and extending the stockyard.