REG - Ibstock PLC - First Quarter Trading Update

IbstockAnnouncement

25/04/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240425:nRSY9278La&default-theme=true

RNS Number : 9278L  Ibstock PLC  25 April 2024

25 April 2024

LEI: 2138003QHTNX34CN9V93

 

Ibstock Plc

 

First Quarter Trading Update

 

Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of a diverse
range of building products and solutions, today issues a trading update for
the first quarter of 2024.

 

Trading Update

 

Trading conditions in the first quarter remained challenging, with activity
levels across residential construction markets remaining subdued during the
period. As a result, sales volumes were below our expectations, with weaker
end market demand in part reflecting the exceptionally wet weather experienced
across the UK during the early months of the year.

 

Despite weaker volumes, a strong performance across our cost reduction
actions, commercial discipline and operational execution enabled the Group to
deliver adjusted EBITDA for the period in line with our expectations.

 

We are encouraged by recent lead indicators which suggest some improvement in
future demand, and it will be important to see how this translates into
activity during the spring season. We remain focussed on costs and operational
performance during this period of market volatility but continue to expect
volumes to improve as the year progresses, with our expectations for full year
adjusted EBITDA remaining unchanged.

 

Our major capital projects are on track with commissioning of the new Atlas
factory and the first phase of the brick slip systems investment in Nostell
progressing well. These projects, together with the significant investment in
our core business over recent years, leave the Group well positioned to
support the significant unmet demand for new build housing in the UK.

 

Joe Hudson, CEO of Ibstock PLC, said:

 

"Trading conditions remained challenging in the first quarter. Against this
background, adjusted EBITDA for the period was in line with our expectations,
supported by our disciplined action on costs and strong operational execution.

 

"While we expect market demand to remain subdued in the near term, lead
indicators reflect an increase in housing market activity, which offers
encouragement for an improvement in volumes in due course.

 

"Our medium-term prospects remain strong, underpinned by our robust balance
sheet, well invested manufacturing network and leading market positions. We
have the capability to take advantage of opportunities against the current
subdued backdrop, and the business is well placed to achieve strong,
profitable growth as our markets recover."

 

- Ends -

 

Enquiries to:

 

 Ibstock plc
 Chris McLeish, CFO      01530 261999

 Citigate Dewe Rogerson  020 7638 9571
 Kevin Smith
 Jos Bieneman

 

 

About Ibstock Plc

Ibstock Plc is a leading UK manufacturer of a diverse range of building
products and solutions. The Group concentrates on eight core product
categories, each backed up by design and technical services capabilities:

-     Bricks and Masonry, Façade Systems, Roofing, Flooring and Lintels,
Staircase and Lift Shafts, Fencing and Landscaping, Retaining Walls and Rail
and Infrastructure.

The Group comprises two core business divisions, Ibstock Clay and Ibstock
Concrete. The Ibstock Futures business was established in 2021 to accelerate
growth in new, fast developing segments of the UK construction market and,
while it remains in its initial growth phase, forms part of the Clay division.

 

Ibstock Clay: The leading manufacturer by volume of clay bricks sold in the
United Kingdom. With 14 manufacturing sites, Ibstock Clay has the largest
brick production capacity in the UK. It operates a network of 14 active
quarries located close to its manufacturing plants. Ibstock Kevington provides
masonry and prefabricated component building solutions, operating from 4
sites.

 

Ibstock Concrete: A leading manufacturer of concrete roofing, walling,
flooring and fencing products, along with lintels and rail &
infrastructure products. The concrete division operates from 13 manufacturing
sites across the UK.

 

Ibstock Futures: Complements the core business divisions by accelerating
diversified growth opportunities which address key construction trends,
including sustainability and the shift towards Modern Methods of Construction
(MMC). Operating from an innovation hub in the West Midlands, and the Nostell
redevelopment in West Yorkshire.

 

Ibstock is headquartered in the village of Ibstock, Leicestershire, with 32
active manufacturing sites across the UK.

 

As a leading building products manufacturer, the Group is committed to the
highest levels of corporate responsibility. The ESG 2030 Strategy sets out a
clear path to address climate change, improve lives and manufacture materials
for life, with an ambitious commitment to reduce carbon emissions by 40% by
2030 and become a net zero operation by 2040.

 

Further information can be found at www.ibstock.co.uk
(http://www.ibstock.co.uk/)

 

Forward-looking statements

 

This announcement contains "forward-looking statements". These forward-looking
statements include all matters that are not historical facts and include
statements regarding the intentions, beliefs or current expectations of the
directors. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances that are
difficult to predict and outside of the Group's ability to control.
Forward-looking statements are not guarantees of future performance and the
actual results of the Group's operations. Forward-looking statements speak
only as of the date of such statements and, except as required by applicable
law, the Group undertakes no obligation to update or revise publicly any
forward-looking statements.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAKLLASLLEFA