Manufacturer expects higher profits despite construction industry’s headwinds

A strong final quarter has resulted in brickmaker Ibstock forecasting higher-than-expected profits for 2021.

The Leicestershire-based manufacturer built on its own solid foundations from earlier in the year and benefitted from high activity levels in the new-build housing and the Repairs, Maintenance and Improvement (RMI) sectors.

Ibstock has the UK’s highest brick production capacity while its second division specialises in concrete products for the construction industry.

It has today told shareholders that its profits, as measured by adjusted EBITDA, will be “modestly ahead of previous expectations”.

Joe Hudson, chief executive of Ibstock, 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.”

He is confident that the company can continue to grow this year, despite headwinds affecting the industry.

Ibstock chief executive Joe Hudson

“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,” he added.

In November, Ibstock announced a £50m investment to create the UK’s first automated brick slips factory.

The facility, to be based in West Yorkshire, is part of the launch of Ibstock Futures – a new business unit established to capture growth opportunities in new, fast-growth sectors of the UK construction market.