REG - Ibstock PLC - First Quarter Trading Update

IbstockAnnouncement

23/04/2025 07:00

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RNS Number : 7340F  Ibstock PLC  23 April 2025

23 April 2025

LEI: 2138003QHTNX34CN9V93

 

Ibstock Plc

 

First Quarter Trading Update

 

Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of a range
of building products and solutions, today issues a trading update for the
first quarter of 2025.

 

Trading Update

 

Trading conditions improved in the first quarter compared to the prior year
period, reflecting increased demand in new build residential construction
markets and a relatively weak comparative in 2024. Against this backdrop,
sales volumes and revenues across the core business were in line with our
expectations and well above the prior year.

Whilst we have seen a more competitive pricing environment in some areas of
the market, we continue to take a disciplined approach to pricing. We have
started to capture the benefit of price increases initiated towards the end of
the first quarter although, with market recovery more pronounced in new build
residential markets, selling prices in the period were adversely impacted by
sales mix.

As expected, the overall EBITDA margin percentage in Q1 was below the prior
year, reflecting the impact of cost inflation ahead of pricing actions taken,
sales mix and additional costs invested in our factory network to support
customer requirements.

Progress on our key organic growth projects remains on track, with production
volumes at Atlas increasing during the period in line with our expectations.
Building on the successful completion of Phase 1 of our slips investment at
Nostell, good progress is being made with Phase 2, the construction of a
larger ceramic facades systems factory, which remains on schedule for
commissioning by year-end. 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.

 Whilst we remain mindful of broader macroeconomic uncertainties, our full
year expectations are unchanged, with performance, as anticipated, weighted
towards the second half.

 

Joe Hudson, CEO of Ibstock Plc, said:

"The Group has made a solid start to the year against a backdrop of improving
market conditions. Sales volumes in the core business were well ahead in the
first quarter, reflecting improved demand but also a relatively weak
comparative in 2024. We continue to maintain both a tight focus on costs and
our disciplined approach to pricing.

 "We continue to expect trading momentum to build through the year and have
made targeted investment in our network to ensure we can service our
customers' needs. With our growth projects on track, and having completed a
programme of investment in our factory network over recent years, we remain
well-placed to respond to the significant unmet demand for new homes in the
UK."

- Ends -

 

 

Enquiries to:

 

 Ibstock Plc
 Chris McLeish, CFO      01530 261999

 Citigate Dewe Rogerson  020 7638 9571
 Kevin Smith

About Ibstock Plc

Ibstock Plc is a leading UK manufacturer of building products and solutions,
backed up by design and technical services and comprises of two core
divisions:

 

Ibstock Clay: The leading manufacturer by volume of clay bricks sold in the
UK, with 15 manufacturing sites served by 15 active quarries. Ibstock
Kevington provides masonry and prefabricated component building solutions,
operating from four 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.

 

Both divisions are complemented by Ibstock Futures, which was established in
2021 to accelerate growth in new segments of the UK construction market and
focuses on even more sustainable solutions and Modern Methods of Construction
(MMC) from two main locations.

 

The Group's 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
(https://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.

 

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