Brickmaker Ibstock back in profit as demand returns
Brick manufacturer Ibstock has returned to a profit after seeing a strong demand across both clay and concrete markets.
The group, which has sites in Cannock and Walsall, has reported pre-tax profits of £65 million for the year ending December 31 2021, compared with a loss of £24 million a year earlier. Meanwhile, revenue rose to £409 million from £316 million.
Ibstock said that trading in the early weeks of 2022 has started well, with a “positive demand outlook across end markets”.
Joe Hudson, chief executive of Ibstock, said: "Our 2021 results reflect both continued robust demand across our markets and strong operational execution. Despite market-wide challenges arising from cost inflation and supply chain pressure, we have delivered a result ahead of the board's expectations, and are well positioned for future growth.
"Whilst we remain mindful of the broader macroeconomic uncertainties, particularly in light of the tragic conflict in Ukraine, we have made a good start to 2022, with a strong demand backdrop. This positive momentum, along with additional brick capacity coming on stream during 2022, provides us with a strong platform to deliver significant further financial and strategic progress.
"Today, we also set out a path for growth and value creation over the next five years, combining expansion of our core business with accelerated diversification into new, fast growing areas of the UK construction market. These strategic ambitions are underpinned by clear financial objectives and capital discipline, which are reflected in the new medium term financial targets. We expect to generate significant additional capital, in excess of our current commitments, over the next five years, which will support both further growth investments and additional shareholder returns.
"With the built environment accounting for around 40 per cent of carbon emissions globally, our industry has a vital role to play in delivering climate change solutions. With our plans to produce the UK's first net zero carbon bricks and brick slips well underway, we are supporting our customers in addressing their carbon reduction goals."