Ibstock, the Leicestershire-based manufacturer of clay and concrete building products and solutions, has hailed a “strong financial performance in 2021,” supported by “a combination of a strong operational performance and proactive management of inflationary pressures.”
According to a trading update for the year ended 31 December 2021, full year revenues are expected to increase by 29% on 2020, to £409 million, which is in line with the level achieved in 2019.
Meanwhile, as a result of a strong trading performance in Q4, the company now expects to report adjusted EBITDA for 2021 modestly ahead of its previous expectations.
The business noted that it saw a continuation of previously reported strong demand trends during the final months of 2021, with robust activity levels in all key end-market segments and in particular from both new build housing and the Repairs, Maintenance and Improvement (RMI) sectors.
Against this backdrop, the group said it traded well in the final quarter of 2021, benefitting from a combination of a resilient operational performance and the dynamic commercial approach taken by the group in both the clay and concrete divisions in response to significant inflationary pressures.
Ibstock said product price increases were successful in mitigating the effect of the significant input cost inflation experienced during the second half of the year, particularly seen across energy, freight, carbon and materials.
Joe Hudson, CEO of Ibstock PLC, said: “Customer demand remained resilient in the final quarter and a combination of a strong operational performance and proactive management of inflationary pressures have ensured that Ibstock was able to deliver a strong financial performance for 2021.
“Whilst we are mindful of ongoing uncertainties, including industry supply chain pressure and cost inflation, the good momentum achieved to the end of the year provides us with a strong platform for significant further financial and strategic progress in 2022.
“The UK construction industry has a vital role to play in supporting economic recovery following the COVID-19 pandemic and addressing climate change in accordance with government targets. Ibstock’s investment in growth and innovation across our business positions us well to pursue opportunities and support the industry into the future.“
