Group issues trading update for year ended 31 December 2022, ahead of full-year results
IN a trading update for the year ended 31 December 2022, Ibstock plc say they delivered a resilient trading performance in the final quarter of last year, with a continued focus on margin management and strong operational execution.
As expected, sales volumes in the final quarter reduced compared with the comparative period, but the business continued to price dynamically to recover significant cost inflation, which, combined with disciplined management of cost, helped ensure a solid margin performance.
Revenues for the full year were approximately £510 million, an increase of around 25% compared with 2021 (£409 million), and given the resilient trading performance in Q4, Ibstock expect to report adjusted EBITDA for 2022 modestly ahead of their previous expectations.
Benefitting from the strong trading performance and a tight focus on cost and working capital management, Ibstock’s cash flow performance for the year was also ahead of expectations, with closing net debt of approximately £46 million (2021: £39 million), after growth capital investments of more than £35 million and £30 million share buyback.
Looking ahead, Ibstock say higher interest rates, inflation, and heightened market uncertainty are expected to impact the demand picture in 2023. However, whilst market conditions are expected to be more challenging in the short term, the company says it is increasingly well positioned to capitalize on opportunities across diversified construction markets and remains confident in its ability to deliver against its ambitious medium-term financial targets.
Joe Hudson, chief executive officer of Ibstock plc, said: ‘The business delivered a resilient performance in the final quarter of 2022, despite, as expected, lower sales volumes across both new build and RMI markets reflecting a more cautious demand environment. A continued disciplined focus on cost management, alongside our dynamic commercial approach, underpinned a solid margin performance in Q4 and resulted in adjusted EBITDA for 2022 that was modestly ahead of our previous expectations.
‘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.
‘Whilst in the short term we expect market conditions to be more challenging, we remain well positioned to deliver strong growth over the medium term.’
Ibstock plc’s full-year results are due to be announced on 8 March 2023.