Ibstock defies supply chain challenges to build healthy profit

Ibstock chief executive Joe Hudson

Leicestershire brickmaker Ibstock has posted a strong first-half performance despite a host of industry-wide – and well-publicised – supply chain challenges.

The listed firm saw its revenue increase to £259m during the six months to 30 June, up from £202m in 2021.

Its pre-tax profits also increased significantly, jumping from £39m to £51m.

The firm cited robust demand in new build residential, RMI and infrastructure markets, consistent network reliability and its tight focus on cost management as the drivers behind its performance.

Joe Hudson, CEO at Ibstock, said: “I am very pleased with the Group’s first half performance, delivering profit and cash both significantly ahead of the prior period, supported by sustained robust demand across all our end markets and good operational execution.

“We continue to manage inflation and supply chain pressures well and are making good progress with our strategic development plans, with investments in new capacity progressing well, and good momentum in Ibstock Futures, as we focus on the delivery of our ambitious medium term financial targets.

“Our market backdrop remains encouraging in the early weeks of the second half – demand is firm, asset utilisation is high and industry inventories remain low – and the strong first half performance gives us confidence in the full year outcome. We have a clear strategy based on both core and diversified growth and will continue to apply our dynamic and disciplined approach to capital allocation.

“While we remain mindful of the broader macroeconomic uncertainties, the Board now expects to deliver adjusted EBITDA for the full year modestly ahead of the expectations signalled in April.”