Ibstock, the manufacturer of clay bricks and concrete products, has hailed a “strong start to the year,” with performance in the first quarter ahead of expectations.
This has been driven by “stronger clay brick sales volumes and resilient margin performance.”
Ibstock said: “Demand remains firm in all our end markets. Our Clay plant network is performing well, with production volumes marginally ahead of our expectations, while our dynamic commercial approach has enabled a full recovery of input cost inflation. Solid operational execution in the Concrete division ensured it performed in line with our expectations, despite some continuing supply chain challenges.”
The Board now expects Ibstock’s full year 2022 performance to be modestly ahead of its previous expectations.
Joe Hudson, Chief Executive Officer, said: “We’ve made a strong start to 2022, supported by robust demand in our end markets and a dynamic commercial approach to manage input price inflation.
“Energy prices remain a key focus and our forward buying policy has ensured that around 75% of H2 2022 requirements are covered, with more than a third of 2023 requirements also locked in.
“Demand in both the new build housing and RMI markets remains robust and, while we are mindful of the broader macroeconomic uncertainties, we now expect to deliver performance for the full year modestly ahead of our previous expectations.
“We are also pleased to be announcing a £30 million share buyback programme, demonstrating our ability to deliver enhanced returns to shareholders whilst continuing to invest in our future growth.”
