Ibstock deliver strong performance in 2021
Result ahead of board expectations; Strong platform for further financial and strategic progress
IBSTOCK plc, manufacturers of clay bricks and concrete products, have reported a strong performance for the year ended 31 December 2021, citing robust trading and good operational execution supported by continued strong demand across both clay and concrete markets.
Revenue of £409 million reflected strong recovery from 2020 (£316 million) but was on a par with 2019 (£409 million), whilst adjusted EBITDA of £103 million (2020: £52 million, 2019: £122 million) was ahead of expectations, driven by outperformance in the clay division.
Pre-tax profit of £65 million (2020: loss of £24 million, 2019: £82 million) also reflected strong recovery from 2020, as did adjusted EBITDA margin at 25.2% (2020: 16.5%, 2019: 29.9%), reflecting effective management of industry-wide supply chain challenges and dynamic pricing to address cost inflation.
Ibstock say trading in the early weeks of 2022 has started well, with a positive demand outlook across end markets, whilst commissioning of capital enhancements are on track to increase the company’s clay network capacity by 5% by mid-2022.
Joe Hudson (pictured), chief executive officer, commented: ‘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.’