REG - Ibstock PLC - Interim Results
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RNS Number : 1227U Ibstock PLC 06 August 2025
Interim Results
6 August 2025
LEI: 2138003QHTNX34CN9V93
Ibstock Plc
Interim results for the six months ended 30 June 2025
Volumes growing with market recovery; margins expected to build from H2 25
Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of a diverse
range of building products and solutions, announces results for the six months
ended 30 June 2025.
· The first half reflected a period of strong volume growth, with profitability,
as previously communicated, tempered by steps to activate core network
capacity to meet recovering demand.
· With recent investments in network capacity, strategic investments in the
Atlas and Nostell plants and a clear focus on margin management and execution,
the Group is well-placed to capitalise on market recovery.
· Further volume growth is expected in the second half and the Group continues
to expect adjusted EBITDA(1) for the full year in the range of £77 million to
£82 million.
· Further progress made in the Group's diversified growth strategy, with
increasing financial contribution expected within Ibstock Futures from both
facades and calcined clay.
Statutory Results
Six months ended 30 June 2025 2024 ∆ 1Y % change
Revenue £193m £178m £15m +8.6%
Profit before taxation £8m £12m £(4)m (34.5)%
EPS 1.4p 2.2p (0.8)p (36.4)%
Interim dividend per share 1.5p 1.5p - -
Adjusted Results(1)
Six months ended 30 June 2025 2024 ∆ 1Y % change
Adjusted EBITDA £36m £38m £(2)m (5.8)%
Adjusted EBITDA margin 18.4% 21.2% (2.8)% (13.2)%
Adjusted EPS 3.0p 3.5p (0.5)p (14.3)%
Adjusted free cashflow £(10)m £(15)m £5m +37.8%
ROCE 7.0% 8.0% (1.0)% (12.5)%
Net debt £145m £138m £(7)m (4.8)%
Market recovery drives volume growth
· Material growth in Group's key markets, particularly within the new-build
residential market, with UK brick deliveries including imports in the period
up by 13% year-on-year
· Group revenues increased by 9% to £193 million (2024: £178 million), driven
by significant volume growth in Clay, where revenue increased by 12% to £134
million (2024: £119 million). Revenue in Concrete was also marginally ahead
of the prior year at £60 million (2024: £59 million)
· Pricing progression in the period was modest, reflecting a competitive market
backdrop; Clay division experienced a negative mix impact, as a result of the
relatively stronger growth in new-build residential markets
· Adjusted EBITDA(1) of £36 million (2024: £38 million) was down by 6%, with
an adjusted EBITDA(1) margin of 18.4%, down 280 bps (2024: 21.2%)
· Performance reflected lower profitability in the Clay business due to cost
inflation, and higher than expected incremental costs associated with
restoring network capacity to meet growing market demand
· In the Concrete division, the adjusted EBITDA(1) margin was down by 280 basis
points to 9.9% (2024: 12.7%), with a negative mix effect from lower rail
infrastructure volumes
· Ibstock Futures delivered an improved financial performance as all product
categories achieved strong progress. Underlying revenues in Futures grew by
over 50%, with the new automated cutting line in Nostell delivering a positive
profit contribution
· Statutory profit before tax was £8 million for the period (2024: £12
million)
· Net debt(1) of £145 million at the end of the period was in line with our
expectations, with the increase in the period reflecting the planned seasonal
investment in working capital. Group reported leverage(1) stood at 2.2x at the
end of the period (30 June 2024: 2.0x)
· Interim dividend maintained at 1.5p per share (2024: 1.5p) reflecting the
Board's continued confidence in the Group's prospects
Investing in core and diversified capacity
· As the Group transitions to a period of anticipated volume recovery, it has
taken measures to restore active capacity at several factories in the Clay
network
· Production at the new Atlas factory is ramping up well. As a pathfinder
factory producing the UK's first externally-verified carbon neutral bricks,
Atlas is pioneering more sustainable and efficient production technologies
that can be rolled out Group-wide to deliver further significant carbon
intensity reductions
· Following the successful delivery of Phase 1 of the slips investment at
Nostell, the Group is moving towards completion of Phase 2, where good
progress is being made with the construction of a larger ceramic facades
systems factory. The market response to the first investment in brick slips
has been positive
· Having concluded extensive technical work over the last three years, the Group
is now at a stage to progress its project to realise the potential from
calcined clay. Detailed discussions with potential partners are now underway,
with a commercial roadmap expected to be concluded by the end of that process.
Current trading and outlook
· We have had an encouraging start to the second half of the year.
· We anticipate growth in sales volumes in the second half compared to the
comparative period, although we remain mindful of broader macroeconomic risk
and the potential impact this may have on our markets.
· Pricing within the core business is expected to remain stable during the
second half, with some potential for positive sales mix as growth within the
Group's end markets rebalances to historic levels over time
· We are focused on delivering improved operational efficiency and the
disciplined management of costs
· As a result, the Group expects to achieve adjusted EBITDA(1) in H2 ahead of
the comparative period, and continues to expect adjusted EBITDA(1) for the
full year to be in the range of £77 million to £82 million
· We continue to expect a modest increase in net debt(1) for the full year
versus the comparator (Dec 2024: £122 million), with positive underlying free
cash flows
Longer term growth outlook
· Longer term, the market presents strong growth prospects underpinned by
supportive government initiatives, improving affordability metrics and
increasing mortgage approval levels
· As a result of recent investments in restoring platform capacity, the Group's
active Clay network can now support further significant market growth from
current levels without structurally increasing fixed cost
· Ibstock Futures expected to make a positive contribution to profits from 2026,
as revenue from its market-leading new product offering accelerates
· With both core and diversified platforms in place to meet growing demand, and
with market recovery underway, the Group has increased confidence in
delivering its committed revenue target of £600 million over the medium term
Over the same period, the Group anticipates significant operational gearing
benefits, with our focus on cost management across the network, as well as
margin uplift over time from volume leverage, sales mix and improved pricing
Following completion of the organic investment programme, the Group expects
free cash flow to build from 2026, providing a solid platform for growth and
capital returns in the years ahead
Joe Hudson, Chief Executive Officer, commented:
"The new-build residential market showed encouraging signs of recovery in the
first half of the year, but activity is still well below normalised levels. As
we plan for a period of further market growth, we have invested in restoring
core capacity to meet demand. Whilst this has impacted margins in the first
half, it will ensure we are able to benefit fully from the recovery as the
market progresses.
With both our core and diversified platforms now substantially in place to
meet growing demand, I am confident in our ability to deliver on our
medium-term revenue goals alongside improvements in profitability and returns
driven by margin focus and significant operational leverage through the
recovery cycle."
Capital Markets Events: Ibstock is committed to developing innovative and
sustainable ways to build the future and is pleased to confirm that it will be
hosting a Capital Markets Day at its Atlas factory in the final quarter of
2025, followed by a visit to its Nostell facility in the first half of 2026.
Details to follow.
Results presentation
Ibstock is holding a presentation at 10.30 BST today at UBS, 5 Broadgate,
London EC2M 2QS.
Please contact ibstock@cdrconsultancy.com (mailto:ibstock@cdrconsultancy.com)
to register your in-person attendance.
A live webcast of the presentation and Q&A is also available. Please
register here (https://brrmedia.news/IBST_HY25) for the live webcast.
The presentation can also be heard via a conference call, where there will be
the opportunity to ask questions.
Conference Call Dial-In Details: UK-Wide: +44 (0) 33 0551 0200
UK Toll Free: 0808 109 0700
US +1 786 697 3501
Confirmation code: please quote Ibstock - HY25 when prompted
An archived version of today's webcast analyst presentation will be available
on www.ibstock.co.uk
(https://www.ibstock.co.uk/investors/reports-and-presentations) later today.
Ibstock Plc 01530 261 999
Joe Hudson, CEO
Chris McLeish, CFO
Citigate Dewe Rogerson 020 7638 9571
Claire de Groot
About Ibstock Plc
Ibstock Plc is a leading UK manufacturer of building products and solutions,
backed by design and technical services that comprises 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.
(1)Alternative performance measures are described in Note 3 to the interim
financial statements.
Chief Executive's Review
Introduction
The Group delivered strong growth in revenues in the first half of the year,
driven by a robust volume performance, with activity in the first half of the
2025 year significantly above last year's levels. Overall, UK brick market
deliveries including imports for the five months ended 31 May 2025 of 750
million were 13% above the comparative period, with the Group's performance
ahead of this level. We are encouraged by the progress of market recovery to
date, and, whilst mindful of short-term uncertainties, anticipate further
progress in volumes during the second half of the year.
As the Group prepares for a period of further volume recovery, we have taken
steps to reactivate productive capacity to meet demand. Whilst doing so, we
have incurred higher-than-expected incremental costs in the first half, which
impacted profitability in the Clay division. Whilst the performance delivered
in the first half fell short of our initial expectations, we are focused on
driving efficiencies through the factory network and expect profitability to
improve in the second half of the year. Having reactivated around 20% of total
clay network capacity over the last 12 months, at the end of June 2025 the
Group had around 85% of total capacity in an active state, with the remaining
15% remaining either idle or mothballed.
Pricing progression in the first half of 2025 was modest, reflecting a
competitive market backdrop in some areas of the market, meaning we were not
able to fully recover cost inflation in the period. We also experienced a
negative impact of sales mix, as a result of relatively stronger growth in
new-build residential construction.
We remain committed to developing innovative and sustainable ways to build the
future and have made good progress with both our core business and diversified
growth strategy. At our Atlas pathfinder factory the team continues to ramp up
production of our lowest carbon bricks to date, demonstrating our commitment
to sustainable manufacturing at scale. Our two investments at the Nostell
factory are also progressing well. These investments enable us to cater to
evolving UK building needs, serving existing and new customers with a wide
range of lower carbon ceramic façade solutions.
Our calcined clay project is progressing well. Having undertaken rigorous
R&D and testing, we are now preparing to accelerate to the next phase of
the project and are in detailed discussions with potential partners, with a
commercial roadmap expected to be concluded by the end of that process. This
low-carbon cement substitute solution should enable a 40% carbon saving versus
ordinary Portland cement, and presents a significant opportunity as a growth
driver.
Activity levels in the early weeks of the second half continue to reflect
improving demand, and we anticipate a continued increase in sales volumes in
the second half of the year, although we remain mindful of broader
macroeconomic risk and the potential impact this may have on our markets. We
expect pricing to remain stable, with the potential for some improvement in
sales mix, as the Group's markets revert to historical levels, over time.
Our focus on embedding a consistent high-performing manufacturing culture
throughout the network is expected to drive further efficiencies and will
support an improvement in profitability within our core business. We believe
that we are in a strong position to benefit from the anticipated market
recovery, with one of the broadest ranges of building products and solutions
in the UK and the core capacity now in place to support further significant
market growth over time.
We have been recognised for leading the way in sector sustainability for many
years and this remains a core part of our strategy, complemented by an
increasing focus on social impact. This focus will also serve to unlock wider
market opportunities such as our expansion into social housing, a key vector
of market growth going forward.
Our balance sheet remains solid, and we expect net debt to reduce during the
second half of the year with an increase in adjusted EBITDA(1) and working
capital requirements that are seasonally lower in the second half. In the
long term, in addition to benefiting from the strong underlying growth from
the business, free cash flow generation is expected to accelerate as our
significant organic capital investment programme draws to a close and capital
expenditure reverts to more typical maintenance levels. This de-leveraging
will leave us with a strong balance sheet and enhanced financial flexibility,
in respect of broader capital allocation strategies and future growth
investments.
The Board has recommended a dividend of 1.5 pence for the period, reflecting
its continued confidence in the prospects for the business (2024:1.5 p).
Financial Performance
Revenue for the period was up by 9% to £193 million (2024: £178 million) as
we delivered strong volume growth in the first half, particularly within the
Clay division. Pricing progression was modest across the Clay and Concrete
businesses, reflecting a competitive market environment. We also experienced a
negative impact from sales mix, with stronger than average growth within the
new-build residential market and a relatively more subdued RMI sector.
During the period we took the decision to reactivate a proportion of our
inactive core capacity, to ensure that we are ready to meet recovering demand.
Whilst this led to higher-than-expected incremental costs in the period, we
expect profitability to improve in the second half as productivity and
operational efficiency ramp up.
Adjusted EBITDA(1) for the period of £36 million was down 6% (2024: £38
million) reflecting these incremental costs, as well as a competitive market
backdrop which limited our ability to pass through cost inflation. Adjusted
EBITDA(1) margins for the period were down 280 basis points to 18.4%.
Profit before tax for the period of £8 million (2024: £12 million) was down
35%. Basic EPS on an adjusted basis(1) for the period was 3.0p (2024: 3.5p),
reflecting a tax rate of 26%, in line with guidance given at the time of our
2024 full-year results.
We disposed of the first tranche of a closed site at Ravenhead in the North
West during the period, recognising cash proceeds of £3 million (and
generating a profit on disposal of just over £1.5 million). We continue to
expect to realise proceeds of around £30 million from the land estate over
the coming 3 to 5 years.
Net debt(1) at the end of the period stood at £145 million, compared to £122
million at the beginning of the period, reflecting the planned seasonal
investment in working capital. We expect to generate positive cash flows in
the second half of the year, and for the closing net debt(1) number to be
slightly above the prior year level, reflecting the revised profit guidance
for the 2025 year set out in our 11 June trading update.
Divisional Review
Clay : Investing in core capacity to meet growing market demand
The Clay Division delivered a strong volume performance with revenue for the
first half of £133.5 million, up 12% from the comparative period (2024:
£119.4 million). Within this, the core Clay business delivered sales of
£128.4 million, up 11% (2024: £115.5 million), whilst Ibstock Futures
recorded an encouraging increase in sales to £5.2 million (2024: £3.9
million).
Overall, total UK brick market deliveries for the five months ended 31 May
2025 of 750 million were 13% above the comparative period, with the Group's
performance ahead of this level. Progression in selling prices was modest,
reflecting a more competitive backdrop in some parts of the market. We
experienced a negative impact from sales mix: the division achieved stronger
growth within our wire-cut brick product range, the majority of which are for
new build housing markets, with growth more muted for our soft-mud brick
range, which typically provides a more differentiated offering into RMI and
specification-led markets. We also experienced regional variation in demand
patterns, with volume growth in most regions compared to a reduction in London
and the South East. The proportion of non-best sales volumes was above the
historic average, reflecting lower operational yields at factories ramped up
during the period.
Adjusted EBITDA(1) of £32.8 million was down 4% (2024: £34.2 million) due to
higher-than-expected incremental costs arising from adding back core capacity
from a number of factories to meet demand and a more competitive market
backdrop, limiting our ability to pass through cost inflation. Production
volumes during the first half of 2025 represented around two-thirds of total
available capacity (H1 2024: around 50%).
Adjusted EBITDA(1) margins for the period within the Clay Division were 24.6%,
down 400 basis points (2024: 28.6%) reflecting lower margins within the core
Clay business for the reasons outlined above, partly mitigated by an
improvement in financial performance within the Ibstock Futures business.
The performance of the Ibstock Futures business is reported within the Clay
segment. We are pleased with the progress made by Ibstock Futures during the
period. We remain committed to developing innovative and sustainable ways to
build the future and believe that modern construction markets represent an
important source of diversified growth for the Group over the medium term.
Excluding the contribution made by the Glass Reinforced Concrete (GRC)
business, which ceased during the first half of the 2025, revenue at Ibstock
Futures grew by over 50% year-on-year as all product lines delivered progress.
Total revenue on a reported basis increased by 32% in the period to £5.2
million (2024: £3.9 million).The financial performance of Ibstock Futures
also showed progress, with overall net costs (including research and
development expenditure) reducing to £1.5 million (2024: £3.3 million).
Concrete: Solid growth in residential categories but with lower rail activity
impacting mix
Revenues within the Concrete division were up 2% on the comparative period, at
£59.9 million (2024: £58.8 million). This reflected solid volume growth
across residential product categories, offset by weaker rail infrastructure
sales volumes. Infrastructure rail volumes were materially lower year-on-year
as activity levels in UK rail infrastructure markets fell to historically low
levels.
Adjusted EBITDA(1) within the division of £6.0 million was down 20%, (2024:
£7.5 million) with adjusted EBITDA(1) margin down by 280 basis points
year-on-year to 9.9% (2024: 12.7%). The reduction in margin principally
reflected an adverse sales mix effect, with lower volumes in the rail
infrastructure sector (which represents a higher-margin part of the Concrete
division). Performance within the division's residential product categories
was relatively more resilient, although margins were marginally lower,
reflecting a more competitive backdrop in some parts of the market.
As an agile business operating in attractive product categories with strong
fundamentals, the Concrete business is well positioned to deliver significant
improvement in performance as markets recover.
Navigating and driving the business under North Star
Our operational strategy remains anchored around the three strategic pillars
of Sustain, Innovate and Grow. Within these pillars, and in order to further
accelerate progress, we have redefined our focus to five key strategic
priorities under the collective banner of the "North Star". This initiative
underlines our resolve to define and differentiate our business with clarity
and intensifies our focus on driving execution across the network.
Sustain
A Safe Reliable Production System
The Group has invested significant capital in the factory networks of our
business over recent years. At the same time, the operational challenges faced
by our business over the last 6 months highlight the need for an enterprise
programme to embed a consistent, high-performance manufacturing culture across
the Group. We have therefore created a dedicated team charged with designing
and embedding the Ibstock Safe, Reliable Production System.
This multi-year transformation programme aims to drive safety, efficiency and
product quality. During the first half, we made good progress on the
development of a standardised work system, which will facilitate best practice
across the network. We intend to roll this system out to one clay factory
initially, before embedding it more broadly from 2026.
Customer Focus and Obsessive Customer Experience
We are proud of our enduring customer relationships, earned through a
high-quality and broad range of products, trust, and a deep understanding of
our customers' needs. We are building a stronger data- oriented approach for
customer and demand insights, and this is enhancing the effectiveness of our
commercial teams. In addition, we are sharpening our focus on the
specification market, which provides a significant growth opportunity.
Finally, we will ensure that we are agile and able to respond to growth in
demand and customer New Product Development (NPD) requirements, through
digital demand planning and advanced Sales & Operational Planning
(S&OP) capabilities.
Innovate
Sector Innovation
Ibstock is committed to developing innovative and further sustainable ways to
help provide solutions and additionality to the UK's critical building needs
with a number of key strategic initiatives:
New Product Development - Product innovation remains a key driver of growth
and we continue to innovate across our wider core product range. On NPD, we
are expanding choice, accelerating innovation and advancing sustainability
across our diverse product category portfolio. So far this year, six new core
brick products have been introduced - primarily targeting the Specification
market - supporting our focus on higher-end customer needs. Other Core product
ranges are evolving with an emphasis on increased recycled content and lower
embodied carbon. Major capital projects at Atlas and Nostell are also actively
enabling new product development programmes across both core and diversified
markets, helping us bring innovation to market at pace. We are also developing
some exciting new modular façade products within Ibstock Futures to serve MMC
markets and are engaged in commercial trials with a number of customers. The
share of revenue from new and sustainable products remained above the Group's
target of 20% in the first half.
Atlas - Our Atlas pathfinder factory is progressing well, and the team is
ramping up production of our lowest carbon bricks to-date. The capacity and
range at the new factory is extensive with multiple new products progressing
through commissioning. Once at full capacity, the factory will produce 105
million bricks per annum. As our pathfinder factory, the team have piloted new
efficiencies and technologies to deliver a reduction in carbon intensity and
cost which could be rolled out across the wider factory network.
Also, continuing our 'pathfinder' approach, Atlas has been shortlisted -
alongside partners - for the Government's HAR2 (Hydrogen Allocation Round 2)
programme. The proposal includes a Green Hydrogen project at our Atlas
factory, reinforcing our commitment to innovation in low-carbon manufacturing.
With cutting-edge technology already in place, Atlas is currently delivering
approximately 50% lower carbon emissions than the previous facility. If the
first phase of the Green Hydrogen project progresses, we expect to increase
that reduction to around 75%, with further potential as our hydrogen strategy
continues to evolve.
Nostell - Our two investments at the Nostell facility are progressing well.
The first is ramping up and is focused on accelerating the pace and scale of
slip production, using first-of-its-kind cutting technology in the UK. The new
automated cutting line in Nostell progressed operations in the first half this
year and delivered a positive profit contribution during the period. The
second investment, a larger-scale project, is on track for commissioning at
the end of this year and features a cutting-edge ceramic facades factory that
will serve to meet pressing UK building needs. The market response to the
first investment has been positive and reinforces our belief that the facades
market will be a highly attractive growth segment for the Group over the
medium term.
Calcined Clay - Cement and concrete currently contribute around 8% of total
global CO2 emissions. Calcined clay presents the potential to dramatically
reduce concrete's carbon emissions by around 40% versus ordinary Portland
cement. The technology to produce calcined clay is now established elsewhere
in the world, but our clay footprint presents Ibstock with the potential to be
the first industrial-scale producer in the UK. Having concluded extensive
technical work over the last few years, the Group is now at an important stage
to crystallise the potential from this opportunity. Detailed discussions with
potential partners are underway, with a commercial roadmap expected to be
concluded by the end of that process.
Grow
Sector Leading Sustainability and Social Impact
Ibstock is recognised as a market-leader in its sustainability approach and
this remains a core part of our strategy. We are now halfway through our ESG
2030 strategy commitments and as a result, during the first half, we conducted
a materiality exercise to review and refine our approach, which validated our
strategy and targets. At the same time, we recognise that the question of
sustainability must be viewed through a wider lens and, accordingly, our
strategy will now be complemented and enhanced by an additional focus on
social impact. This offers a gateway to wider market opportunities such as our
expansion into social housing and aligns our values with the evolving needs of
customers, as well as enabling a sense of pride for colleagues through our
focus on placemaking principles within communities.
People and Culture
A commitment to the values of courage, trust and teamwork lies at the heart of
Ibstock's culture. Building on this, we want to be a champion within our
industry for developing people and culture. We are proud of our well
established Early Careers and Talent Management programmes, and have augmented
these through the launch during the first half of an all-employee development
offering and further ongoing upskilling opportunities.
Medium term targets on track
With both our core and diversified platforms now in place to meet growing
demand, and with the market recovery progressing, the Group has increased
confidence in delivering its committed revenue target of £600 million, with
an ambition to grow beyond that.
Our conviction is underpinned by the Government's commitment to accelerate new
housing activity over the current Parliament, facilitated by investment and
reform in planning; and its recent commitment to social housing, with a new
10-year £39 billion Social and Affordable Homes Programme.
The Group has an opportunity to establish leadership in supporting modern
construction markets by bringing new products and systems to market, to help
address a pressing need for housing. Investment in innovation will be a
significant driver of growth as Ibstock Futures ramps up, and the Nostell
plant is on track to produce an unrivalled product offering with its ceramic
facades proposition. The pace of new product launches within the core business
is also driving incremental growth in the core business. The Atlas plant is
pioneering more sustainable production technologies and delivering the UK's
first externally-verified carbon neutral bricks. Overall, we continue to
expect revenues from new and more sustainable products to represent at least
20% of total revenues over the years ahead.
We retain a strong conviction in the attractive fundamentals of our business,
and believe that our well-invested assets, talented and committed people, and
leading market positions will deliver an uplift in margins and returns over
the years ahead. Adjusted EBITDA(1) margin growth will be underpinned by an
ongoing focus on operational efficiency, and the steps to implement best
practice production principles throughout the network. There will also be a
significant positive impact on profitability from operational leverage with
volume recovery alongside an improvement in pricing and mix if, as expected,
our markets return to normalised levels over the years ahead.
Accordingly, we continue to target an adjusted EBITDA(1) margin in the core
Clay business of more than 35%, at least in line with historical levels, and
for Group margins of at least 28%.
Outlook for 2025
We have had an encouraging start to the second half of the year. We anticipate
growth in sales volumes in the second half compared to the comparative period,
although we remain mindful of broader macroeconomic risk and the potential
impact this may have on our markets. We expect pricing to remain stable, with
an improvement in sales mix over time as growth within product range, channels
and regions rebalance to more typical levels.
With a clear focus on driving efficiencies through the factory network
alongside the disciplined management of indirect cost, we expect profitability
to improve in the second half, as productivity and operational efficiency ramp
up.
As a result, the Group expects to achieve adjusted EBITDA(1) in H2 ahead of
the comparative period and continues to expect adjusted EBITDA(1) for the full
year to be in the range of £77 million to £ 82 million.
Ibstock continues to benefit from a solid balance sheet and well-invested
factory network. With recent actions to add core capacity to its network, and
its strategic investments in sector innovation, the Group is well-placed to
support the significant growth in new build housing activity in the UK in the
years ahead.
Chief Financial Officer's report
Introduction
The Group delivered strong growth in revenues in the first half of the year,
against the backdrop of increasing market demand. In order to ensure we have
the capacity to meet continuing market growth, we took steps during the period
to reactivate productive capacity, although in doing so, incurred incremental
costs in the first half, which impacted profitability in the Clay division.
Pricing progression within the core business was modest, reflecting a more
competitive market backdrop, which limited our ability to pass through cost
inflation. Whilst performance in the first half fell short of our initial
expectations, we are focused on driving efficiencies through the factory
network alongside an intense focus on indirect cost, and expect profitability
to improve in the second half of the year.
Group statutory profit before taxation of £7.7 million (2024: £11.8 million)
reflected the lower trading performance, as well as an exceptional cost(1) of
£2.8 million (2024: cost of £3.2 million) relating to site closure and
decommissioning activities, principally related to the run-off of GRC
manufacturing operations, following the announcement of its closure in the
second half of the 2024 year.
With continued strong progress against our strategic investment plans, we
deployed around £21 million of capital investment (2024: £24 million) to
sustain our networks and drive future growth in both core and diversified
construction markets. We continue to manage our balance sheet carefully
through the recent market weakness, and expect the cash generation profile of
the business to provide additional scope for growth investment as well as
incremental shareholder returns as conditions improve.
Alternative performance measures
This results statement contains alternative performance measures ("APMs") to
aid comparability and further understanding of the financial performance of
the Group between periods. A description of each APM is included in Note 3 to
the financial statements. The APMs represent measures used by management and
the Board to monitor performance against budget, and certain APMs are used in
the remuneration of management and Executive Directors. It is not believed
that APMs are a substitute for, or superior to, statutory measures.
Group results
The table below sets out segmental revenue, profit/(loss) before tax and
adjusted EBITDA(1) for the period
Clay(2) Concrete Central costs Total
£'m £'m £'m £'m
Six-month period ended 30 June 2025
Total revenue 133.5 59.9 - 193.4
Adjusted EBITDA(1) 32.8 6.0 (3.2) 35.5
Margin 24.6% 9.9% 18.4%
Profit/(loss) before tax 13.8 0.6 (6.7) 7.7
Six-month period ended 30 June 2024
Total revenue 119.4 58.8 - 178.2
Adjusted EBITDA(1) 34.2 7.5 (4.0) 37.7
Margin 28.6% 12.7% 21.2%
Profit/(loss) before tax 15.9 1.9 (6.0) 11.8
(1) Alternative Performance Measures are described in Note 3 to the results
announcement
(2) Clay segment incorporates Futures business performance, and excludes
exceptional cost(1) of £2.8 million (2024: £3.2 million)
Due to rounding, numbers presented may not add up precisely to the totals
provided and percentages may not precisely align to the reported figures
Revenue
Group revenue for the six months ended 30 June 2025 increased by 9% to £193.4
million (2024: £178.2 million) driven by strong volume growth, particularly
within the Clay division. Pricing progression compared to the comparative
period was modest, reflecting a competitive market environment. Revenue was
also adversely impacted by sales mix, with stronger than average growth within
the new-build residential market and a relatively more subdued RMI sector.
In our Clay division, revenues of £133.5 million represented an increase of
12% on the prior year period (2024: £119.4 million). Overall, UK brick market
deliveries including imports for the five months ended 31 May 2025 were 13%
above the comparative period, with the Group's performance ahead of this
level. Encouragingly, the contribution from Ibstock Futures to this revenue
number increased to around £5.2 million (2024: £3.9 million).
In our Concrete division, reported revenue increased by 2% year-on-year to
£59.9 million (2024: £58.8 million). Performance reflected solid volume
growth across residential product categories, offset by rail volumes which
were materially lower year-on-year, as activity levels in UK rail
infrastructure markets fell to historically low levels.
Adjusted EBITDA(1)
Management measures the Group's operating performance using adjusted
EBITDA(1). Adjusted EBITDA(1) decreased by £2.2 million to £35.5 million in
H1 2025 (H1 2024: £37.7 million). Performance reflected higher than expected
incremental costs, as we reactivated a proportion of our clay capacity to
ensure that we are ready to meet recovering demand, as well as a competitive
market backdrop which limited our ability to pass through cost inflation.
Within the Clay division, adjusted EBITDA(1) totalled £32.8 million (2024:
£34.2 million), representing an adjusted EBITDA margin(1) of 24.6% (2024:
28.6%) reflecting lower margins within the core Clay business for the reasons
outlined above, partly mitigated by an improvement in financial performance
within the Ibstock Futures business.
The clay division recognised a net cost of £1.5 million (2024: cost of £3.3
million) in respect of Ibstock Futures, underpinned by underlying revenue
growth of over 50% as all product lines delivered progress. The Group has
continued to invest in enabling research, development and marketing capability
to support future revenue opportunities, including on calcined clay.
Within our Concrete division, adjusted EBITDA(1) decreased to £6.0 million
(2024: £7.5 million), as the division was impacted by materially lower sales
volumes in our rail product categories. The adjusted EBITDA margin(1) of 9.9%
in concrete was below the 2024 level of 12.7%, with the reduction in margin
principally reflecting an adverse sales mix effect, with lower volumes in the
rail infrastructure sector (which represents a higher-margin part of the
Concrete division).
Central costs decreased marginally to £3.2 million (2024: £4.0 million)
reflecting lower charges arising from incentive plans.
Looking forwards, the Group remains focused on increasing operational
efficiency across the factory network and tightly managing indirect cost.
Adjusted EBIT(1)
In order to focus on a more comprehensive measure of operating performance,
and in line with a key remuneration measure for senior management, the Group
has also started to measure and report the Group's performance using adjusted
EBIT(1). Adjusted EBIT(1) is defined as adjusted EBITDA(1) less underlying
depreciation and amortisation.
For the six months to 30 June 2025, adjusted EBIT(1) reduced to £20.7 million
(2024: £23.1 million) reflecting reduced trading profits and a modest
increase in underlying depreciation and amortisation to £14.8 million (2024:
£14.6 million).
Exceptional items(1)
Based on the application of our accounting policy for exceptional items(1),
certain income and expense items have been excluded in arriving at adjusted
EBITDA(1) to aid shareholders' understanding of the Group's underlying
financial performance.
The amounts classified as exceptional(1) in the period totalled a net cost of
£2.8 million (2024: £3.2 million cost), associated with decommissioning
activities and other costs associated with closed sites as well as costs
directly arising from our decision to close the Glass Reinforced Concrete
(GRC) business.
Further details of exceptional items(1) are set out in Note 5 of the financial
statements.
Finance costs
Net finance costs of £4.8 million were above the level of the prior year
(2024: £2.7 million), reflecting an increased interest cost on our bank
borrowings as the average borrowing on our £125 million Revolving Credit
Facility (RCF) increased over the comparative period, and the reduction in
non-cash interest income arising from the unwind of discounted provisions.
Profit before taxation
Group statutory profit before taxation was £7.7 million (2024: £11.8
million), reflecting the lower trading performance, as well as an exceptional
cost(1) of £2.8 million (2024: cost of £3.2 million) relating to site
closure and decommissioning activities, as detailed above.
Taxation
The Group recorded a taxation charge of £2.1 million (2024: £3.2 million) on
Group pre-tax profits of £7.7 million (2024: £11.8 million), resulting in an
effective tax rate ("ETR") of 26.8% (2024: 27.1%) compared with the standard
rate of UK corporation tax of 25.0% (2024: 25.0%).
The adjusted ETR(1) (excluding the impact of the deferred tax rate change and
exceptional items) was 26.2% (2024: 26.2%).
We continue to expect the adjusted ETR(1) for the 2025 year to be around 26%,
in line with the rate reported in the first half.
Earnings per share
Group statutory basic earnings per share (EPS) decreased to 1.4 pence in the
six months to 30 June 2025 (2024: 2.2 pence) primarily as a result of reduced
trading performance in the period.
Group adjusted basic EPS(1) of 3.0 pence per share decreased from 3.5 pence
last year, reflecting reduced adjusted EBIT(1). In line with prior years, our
adjusted EPS(1) metric removes the impact of exceptional items(1), the fair
value uplifts resulting from our acquisition accounting and non-cash interest
impacts, net of the related taxation charges/credits. Adjusted EPS(1) has been
included to provide a clearer guide as to the underlying earnings performance
of the Group. A full reconciliation of our adjusted EPS(1) measure is included
in Note 7.
Table 1: Earnings per share
2025 2024
pence pence
Statutory basic EPS - Continuing operations 1.4 2.2
Adjusted basic EPS(1) - Continuing operations 3.0 3.5
Cash flow and net debt(1)
Adjusted operating cash flow increased by £2.3 million to £11.3 million
(2024: £9.0 million), reflecting a decrease in adjusted EBITDA(1), mitigated
by a lower working capital outflow of £12.4 million (2024: outflow of £19.4
million).
The working capital outflow in the period reflected the typical seasonal build
in the level of trade receivables. Inventories increased modestly during the
period as we built a base level of finished goods inventories at the recently
commissioned Atlas factory to support customer service over the coming months.
Adjusted net interest paid in the six months to 30 June 2025 increased
marginally to £4.6 million (2024: £4.2 million), in line with our
expectations. The increase compared to the comparative period reflected an
increase in average borrowings.
Tax payments totalled £2.3 million (2024: £0.5 million) as the benefit from
the accelerated write down on qualifying capital expenditure began to reduce
with our organic growth projects nearing completion.
Other cash outflows of £4.9 million (2024: £4.6 million outflow) related to
operating lease payments. The Group purchased no carbon emission credits in
the period (H1 2024: none).
With Adjusted Operating Cash Flows(1) in the period increasing marginally from
the prior period, the cash conversion(1) percentage increased to 32% (from 24%
in 2024), reflecting a reduced investment in working capital versus the prior
period.
Adjusted free cash flow(1) in the period totalled an outflow of £9.6 million
(2024: £15.5 million outflow). Capital expenditure of £20.9 million
decreased by £3.5 million compared to the comparative period (2024: £24.4
million), as major project expenditure reduced, as anticipated, and sustaining
capital continued to be tightly managed. Capital expenditure comprised around
£9 million of sustaining expenditure, £1 million on the Atlas and Aldridge
redevelopments, around £10 million on the Nostell brick slip investments and
£1 million on smaller growth projects in the Concrete division.
For the full year, we continue to expect total capital expenditure of around
£40 million with sustaining capital expenditure of around £20 million, and
growth capital expenditure of £20 million.
Table 2: Cash flow (non-statutory)
2025 2024 Change
£'m £'m £'m
Adjusted EBITDA(1) 35.5 37.7 (2.2)
Adjusted change in working capital(1) (12.4) (19.4) 7.0
Net interest (4.6) (4.2) (0.4)
Tax (2.3) (0.5) (1.8)
Post-employment benefits - - -
Other(2) (4.9) (4.6) (0.3)
Adjusted operating cash flow(1) 11.3 9.0 2.3
Cash conversion(1) 32% 24% 8ppts
Total capex (20.9) (24.4) 3.5
Adjusted free cash flow(1) (9.6) (15.5) 5.9
(1) Alternative Performance Measures are described in Note 3 to the
consolidated financial statements.
(2) Other includes operating lease payments
The table above excludes cash outflows relating to exceptional items(1) of
£3.2 million in 2025 (2024: £ 7.7 million) arising from the settlement of
severance and certain decommissioning activities arising in the period.
Net debt(1) (borrowings less cash) at 30 June 2025 totalled £144.5 million
(31 December 2024: £121.6 million; 30 June 2024: £137.8 million). The
movement during the period reflected the seasonal increase in working capital
combined with £20.9 million of capital expenditure as the Group continued to
invest in its growth projects.
We disposed of the first tranche of a closed site at Ravenhead in the North
West during the period, recognising cash proceeds of £3 million (and
generating a profit on disposal of just over £1.5 million). We continue to
expect to realise proceeds of around £30 million from the land estate over
the coming 3 to 5 years.
We expect to generate positive cash flows in the second half of the year, and
for the closing net debt(1) number at 31 December 2025 to be slightly above
the prior year level, reflecting our revised profit guidance for the 2025 year
set out in our 11 June trading update.
The Group's borrowings contain leverage covenants of no greater than 3.0x.
Based on the covenant definition, leverage at 30 June 2025 totalled 1.9 times,
comfortably below the covenant limit. At the balance sheet date, the Group had
£58 million of undrawn committed facilities.
Adjusted return on capital employed(1)
Adjusted return on capital employed(1) (adjusted ROCE(1)) decreased to 7.0%
(2024: 8.0%) driven by reduced adjusted EBIT(1) on a higher level of capital
employed. The increase in capital employed compared to the comparative period
principally reflected the incremental investment in organic growth projects.
Capital allocation
The Group's capital allocation framework remains consistent with that laid out
in 2020, with the Group committed to allocating capital in a disciplined and
dynamic way.
Our capital allocation framework is set out below:
• Firstly, we will invest to maintain and enhance our existing asset base and
operations;
• Having done this, we will look to pay an ordinary dividend. We are committed
to paying dividends which are sustainable and progressive, with targeted cover
of approximately 2 times underlying earnings through the cycle;
• Thereafter, we will deploy capital for growth, both inorganically and
organically, in accordance with our strategic and financial investment
criteria;
• And, finally, we will return surplus capital to shareholders.
Our framework remains underpinned by our commitment to maintaining a strong
balance sheet, and we will look to maintain leverage at between 0.5 and 1.5
times net debt(1) to adjusted EBITDA(1) excluding the impact of IFRS 16,
through the cycle.
Dividend
The interim dividend has been maintained in line with the prior year period at
1.5 pence per share (2024: 1.5 pence), reflecting the Board's continued
confidence in the prospects for the business. The dividend will be paid on 15
September 2025 to shareholders on the register on 22 August 2025.
Pensions
At 30 June 2025, the defined benefit pension scheme ("the scheme") was in an
actuarial accounting surplus position of £7.0 million (31 December 2024:
surplus of £7.8 million; 30 June 2024: surplus of £8.8 million). Applying
the valuation principles set out in IAS19, at the half year end the scheme had
assets of £320.9 million (31 December 2024: £330.9 million; 30 June 2024:
£341.4 million) against scheme liabilities of £313.9 million (31 December
2024: £323.1 million; 30 June 2024: £332.6 million).
On 20 December 2022, the Scheme completed a full buy-in transaction with a
specialist third-party provider. Together with the partial buy-in transaction
completed with the same counterparty in 2020, this transaction insured the
significant majority of the Group's defined benefit liabilities.
Climate Change & TCFD
As a long-term, energy intensive business, a commitment to environmental
sustainability and social progress is central to our purpose. In 2022 we
launched the Group's ESG 2030 Strategy and remain committed to this approach.
This strategy provides the framework for actions across three key areas:
● Addressing climate change;
● Improving lives; and,
● Manufacturing materials for life.
At the same time, we have identified material transition and physical risks
associated with climate change and considered the impacts of these on the
financial performance and position of the Company, through our viability
scenario assessment, our impairment testing and assessment of the useful
economic lives of our assets. We have also assessed the resilience of our
business model as part of our strategic planning process. The outputs from
these activities are detailed in our TCFD disclosures contained in the 2024
Annual Report and Accounts.
The Group remains committed to increasing the transparency of reporting around
climate impacts, risks, and opportunities. This year we continued to enhance
our disclosure to ensure full compliance with the recommendations of the Task
Force for Climate-related Financial Disclosures (TCFD) and those of
Climate-related Financial Disclosure (CFD).
Related party transactions
Related party transactions are disclosed in Note 15 to the consolidated
financial statements. During the current and prior year there have been no
material related party transactions.
Subsequent events
Except for the proposed interim ordinary dividend, no further subsequent
events requiring either disclosure or adjustment to these financial statements
have arisen since the balance sheet date.
Going concern
The Directors are required to assess whether it is reasonable to adopt the
going concern basis in preparing the financial statements.
In arriving at their conclusion, the Directors have given due consideration to
whether the funding and liquidity resources are sufficient to accommodate the
principal risks and uncertainties faced by the Group.
Having considered the outputs from this work, the Directors have concluded
that it is reasonable to adopt a going concern basis in preparing the
financial statements. This is based on an expectation that the Company and the
Group will have adequate resources to continue in operational existence for at
least twelve months from the date of signing these accounts.
Further information is provided in note 2 of the financial statements.
Principal Risks and Uncertainties
This section should be read in conjunction with the rest of this Half Year
Statement as this provides further information concerning events that have
occurred during the first six months of the financial year.
The Group's activities mean it is exposed to a variety of risks and
uncertainties which could, either separately or in combination, have a
material impact on the Group's performance and shareholder returns. These
risks and uncertainties relate to: Regulatory and compliance, People and
talent management, Cyber and information systems, Heath, Safety and
environment (HSE), Economic conditions, Financial risk management, Customer
and industry risk, Climate change and Major project delivery.
The Board assesses and monitors the key risks impacting the business and an
explanation of the Group's approach to risk management is set out in Ibstock
Plc's Annual Report 2024, a copy of which is available on the Group's
corporate website, www.ibstock.co.uk (http://www.ibstock.co.uk) .
The Group continues to be exposed to unfavourable macro-economic conditions,
subdued consumer sentiment and a prolonged recovery in UK residential and
infrastructure construction markets. These areas impact a number of the
Group's principal risks including Economic conditions, Customer and industry
risk, People and talent management and Financial risk management.
Having undertaken a comprehensive review during the first half of the 2025
year, the Board has concluded that the Group's existing principal risks and
uncertainties remain unchanged from those set out in its 2024 Annual Report,
and that there continue to be clear actions in place to appropriately mitigate
these risks.
A full report on the Group's principal risks will be included with the FY 2025
annual report and accounts. The Board will continue to monitor the Group's
principal risks during the remaining six months of the year, with a focus on
Economic conditions, Customer and industry risk, People and talent management,
Financial risk management, alongside Cyber security, Major project delivery
and HSE.
(1)Alternative performance measures are described in Note 3 to the interim
financial statements.
Statement of directors' responsibilities in relation to the half-yearly
financial report
The directors confirm that to the best of their knowledge:
• The condensed set of financial statements has been prepared in accordance with
IAS 34 Interim Financial reporting as contained in UK-adopted IFRS;
• The interim management report includes a fair review of the information
required by DTR 4.2.4R, DTR 4.2.7R and DTR 4.2.8R, namely:
a) the condensed set of financial statements gives a true and fair view of the
assets, liabilities, financial position, cash flows and profit or loss of the
issuer, or undertakings included in the consolidation;
b) an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
c) material related party transactions in the first six months and any
material changes in the related party transactions described in the last
annual report.
By order of the Board:
Joe Hudson Chris McLeish
Chief Executive Officer Chief Financial Officer
5 August 2025 5 August 2025
Condensed consolidated income statement
for the six months ended 30 June 2025
Unaudited Unaudited Audited
Notes Half year ended Half year ended 30/06/2024 Year ended 31/12/2024
30/06/2025
£'000 £'000 £'000
Revenue 4 193,445 178,189 366,207
Cost of sales (140,972) (126,833) (261,650)
Gross profit 52,473 51,356 104,557
Distribution costs (18,693) (17,112) (34,139)
Administrative expenses (23,785) (20,765) (45,650)
Total profit on disposal of property, plant and equipment 1,566 11 261
Other income 1,074 1,157 2,314
Other expenses (138) (195) (270)
Operating profit 12,497 14,452 27,073
Finance costs (5,109) (3,982) (8,287)
Finance income 330 1,312 1,894
Net finance cost (4,779) (2,670) (6,393)
Profit before taxation 7,718 11,782 20,680
Taxation 6 (2,067) (3,193) (5,588)
Profit for the financial period 5,651 8,589 15,092
Profit attributable to:
Owners of the parent 5,651 8,589 15,092
Notes pence per share pence per share pence per share
Earnings per share
Basic 7 1.4 2.2 3.8
Diluted 7 1.4 2.2 3.8
Non-GAAP measure
Reconciliation of adjusted EBIT and adjusted EBITDA to Operating profit for
the financial period:
Unaudited Unaudited Audited
Notes Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
£000 £000 £000
Operating profit 12,497 14,452 27,073
Add back exceptional costs impacting operating profit 5 2,836 3,226 11,720
Add back incremental depreciation and amortisation following fair value uplift 4 5,388 5,390 10,779
Adjusted EBIT* 20,721 23,068 49,572
Add back depreciation and amortisation pre fair value uplift 4 14,811 14,636 29,778
Adjusted EBITDA* 35,532 37,704 79,350
(*)Alternative performance measures are described in Note 3 to the interim
financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Notes Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
£'000 £'000 £'000
Profit for the financial period 5,651 8,589 15,092
Other comprehensive expense:
Items that may be reclassified subsequently to profit or loss
Change in fair value of cash flow hedges 11 79 - (54)
Related tax movements (20) - 14
59 - (40)
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit assets and obligations 12 (434) (756) (1,457)
Related tax movements 109 189 437
(325) (567) (1,020)
Other comprehensive expense for the period net of tax (266) (567) (1,060)
Total comprehensive income for the period, net of tax 5,385 8,022 14,032
Total comprehensive income attributable to:
Owners of the parent 5,385 8,022 14,032
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
Notes 30/06/2025 30/06/2024 31/12/2024
£'000 £'000 £'000
Assets
Non-current assets
Intangible assets 70,443 76,284 73,950
Property, plant and equipment 470,588 453,348 462,504
Right-of-use assets 26,141 36,817 28,363
Post-employment benefit asset 12 6,982 8,771 7,839
574,154 575,220 572,656
Current assets
Inventories 128,839 116,753 124,819
Current tax receivable 5,310 2,996 1,323
Derivative financial instruments 11 15 - -
Trade and other receivables 55,718 58,632 43,815
Cash and cash equivalents 22,588 6,595 9,292
212,470 184,976 179,249
Assets held for sale - - 200
Total assets 786,624 760,196 752,105
Current liabilities
Trade and other payables (92,953) (77,372) (88,853)
Derivative financial instruments 11 - (24) (78)
Borrowings 8 (67,451) (45,425) (31,425)
Lease liabilities (9,323) (8,984) (9,471)
Provisions 13 (1,822) (3,285) (3,010)
(171,549) (135,090) (132,837)
Net current assets 40,921 49,886 46,612
Total assets less current liabilities 615,075 625,106 619,268
Non-current liabilities
Borrowings 8 (99,643) (99,008) (99,427)
Lease liabilities (23,119) (31,618) (25,611)
Deferred tax liabilities (93,719) (93,272) (91,940)
Provisions 13 (7,708) (6,799) (7,027)
(224,189) (230,697) (224,005)
Total liabilities (395,738) (365,787) (356,842)
Net assets 390,886 394,409 395,263
Equity
Share capital 4,096 4,096 4,096
Share premium 4,458 4,458 4,458
Retained earnings 778,205 784,851 783,800
Other reserves 14 (395,873) (398,996) (397,091)
Equity attributable to owners of the company 390,886 394,409 395,263
Total equity 390,886 394,409 395,263
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Retained earnings Other reserves (see Note 14) Total equity attributable to owners
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2025 4,096 4,458 783,800 (397,091) 395,263
Profit for the period - - 5,651 - 5,651
Other comprehensive expense - - (325) 59 (266)
Total comprehensive income for the period - - 5,326 59 5,385
Transactions with owners:
Share based payments - - 138 - 138
Deferred tax on share-based payments - - (35) - (35)
Equity dividends paid - - (9,865) - (9,865)
Issue of own shares held on exercise of share options - - (1,159) 1,159 -
At 30 June 2025 (unaudited) 4,096 4,458 778,205 (395,873) 390,886
Balance at 1 January 2024 4,096 4,458 790,971 (399,658) 399,867
Profit for the period - - 8,589 - 8,589
Other comprehensive expense - - (567) - (567)
Total comprehensive income for the period - - 8,022 - 8,022
Transactions with owners:
Share based payments - - 874 - 874
Current tax on share-based payments - - (219) - (219)
Equity dividends paid - - (14,135) - (14,135)
Issue of own shares held on exercise of share options - - (662) 662 -
At 30 June 2024 (unaudited) 4,096 4,458 784,851 (398,996) 394,409
Balance at 1 July 2024 4,096 4,458 784,851 (398,996) 394,409
Profit for the period - - 6,503 - 6,503
Other comprehensive expenses - - (453) (40) (493)
Total comprehensive income/(expenses) for the period - - 6,050 (40) 6,010
Transactions with owners:
Share based payments - - 379 - 379
Current tax on share based payment - - 237 - 237
Deferred tax on share-based payments - - 124 - 124
Equity dividends paid - - (5,896) - (5,896)
Issue of own shares held on exercise of share options - - (1,945) 1,945 -
At 31 December 2024 (audited) 4,096 4,458 783,800 (397,091) 395,263
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
£'000 £'000 £'000
Cash flow from operating activities
Cash generated from operations (Note 10) 17,184 10,758 62,906
Interest paid (3,704) (3,023) (6,257)
Other interest paid - lease liabilities (1,044) (1,261) (2,494)
Tax paid (2,271) (501) (500)
Net cash inflow from operating activities 10,165 5,973 53,655
Cash flows from investing activities
Purchase of property, plant and equipment (20,942) (24,422) (45,235)
Proceeds from sale of property, plant and equipment 2,770 3 379
Settlement of deferred consideration - 171 171
Interest received 114 47 139
Net cash outflow from investing activities (18,058) (24,201) (44,546)
Cash flows from financing activities
Dividends paid (9,865) (14,135) (20,031)
Drawdown of borrowings 61,000 58,000 87,000
Repayment of borrowings (25,000) (38,000) (81,000)
Repayment of lease liabilities (4,941) (4,915) (9,651)
Net cash inflow/(outflow) from financing activities 21,194 950 (23,682)
Net increase/(decrease) in cash and cash equivalents 13,301 (17,277) (14,573)
Cash and cash equivalents at beginning of the year 9,292 23,872 23,872
Exchange losses on cash and cash equivalents (5) - (7)
Cash and cash equivalents at end of the period 22,588 6,595 9,292
1. AUTHORISATION OF FINANCIAL STATEMENTS
Ibstock Plc ("Ibstock" or "the Group") is a manufacturer of clay bricks and
concrete products with operations in the United Kingdom. Ibstock Plc is a
public company limited by shares, which is incorporated and registered in
England. The registered office is Leicester Road, Ibstock, Leicestershire,
LE67 6HS and the company registration number is 09760850.
The interim condensed consolidated financial statements of Ibstock Plc for the
six months ended 30 June 2025 were authorised for issue in accordance with a
resolution of the Directors on 5 August 2025. All disclosed documents relating
to these results are available on the Group's website at www.ibstock.co.uk.
Publication of non-statutory accounts
The financial information contained in the interim statement does not
constitute the Group's statutory accounts as defined in section 434 of the
Companies Act 2006. The comparative figures for the financial year ended 31
December 2024, which have been extracted from the statutory accounts for that
year, are not the Company's statutory accounts for that financial year.
Statutory accounts for the year ended 31 December 2024 were approved by the
Board of Directors on 4 March 2025. Those accounts have been reported on by
the Company's auditor and delivered to the Registrar of Companies. The report
of the auditor was (i) not qualified, (ii) did not include a reference to any
matters to which the auditor drew attention by way of emphasis of matter
without qualifying their report, and (iii) did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
2. BASIS OF PREPARATION
The interim condensed consolidated financial statements for the six months
ended 30 June 2025 have been prepared in accordance with UK-adopted
International Accounting Standard 34 'Interim Financial Reporting' as
contained in UK-adopted IFRS.
They do not include all of the information and disclosures required in the
annual financial statements, and should be read in conjunction with the
Group's Annual Report and Accounts as at 31 December 2024, which have been
prepared in accordance with UK-adopted International Accounting Standards
(IAS).
The condensed consolidated financial statements are presented in Sterling and
all values are rounded to the nearest thousand, except where otherwise
indicated.
All accounting policies applied by the Group within the interim condensed
consolidated financial statements are consistent with those applied by the
Group in its consolidated financial statements for the year ended
31 December 2024, except in respect of taxation, which is based on the
expected effective tax rate that would be applicable to expected annual
earnings.
The following new amended standard and interpretations have been adopted in
the preparation of the condensed consolidated financial statements:
• Lack of Exchangeability (Amendments to IAS 21).
The adoption of the standard and interpretations listed above has not led to
any changes to the Group's accounting policies or had any other material
impact on the financial position or performance of the Group.
In preparing the interim condensed consolidated financial statements the Group
has assessed the critical accounting estimates and judgements applied in the
preparation of the consolidated financial statements for the year ended 31
December 2024. The areas of critical judgement relating to exceptional items
(see Note 5), significant source of estimation uncertainty regarding the
Group's pension scheme liability valuation assumptions surrounding future
changes in discount rates, inflation, the rate of increase in pensions in
payment and life expectancy (see Note 12) and the Group's future cash flows
expected to arise from Cash Generating Units (CGUs) assumptions related to
long-term industry demand (see Note 9) are still considered critical to the
preparation of the interim financial statements for the period ended 30 June
2025.
Going concern
Despite the macroeconomic downturn, there are initial positive external market
indicators with inflation and mortgage rates stabilising, and proposed housing
and planning policy changes which could increase both housing construction
activity and effective demand for housing looking forward. Management does not
believe that the going concern basis of preparation represents a significant
judgement.
The Group's financial planning and forecasting process consists of a budget
for the next year followed by a medium-term projection. The Directors have
reviewed and robustly challenged the assumptions about future trading
performance, operational and capital expenditure and debt requirements within
these forecasts including the Group's liquidity and covenant forecasts, and
stress testing within their going concern assessment.
In arriving at their conclusion on going concern, the Directors have given due
consideration to whether the funding and liquidity resources above are
sufficient to accommodate the principal risks and uncertainties faced by the
Group, particularly those relating to economic conditions and operational
disruption. The strategic report sets out in more detail the Group's approach
and risk management framework.
Group forecasts have been prepared which reflect both actual conditions and
estimates of the future reflecting macroeconomic and industry-wide
projections, as well as matters specific to the Group.
The Group has financing arrangements comprising £100 million of private
placement notes with maturities between November 2028 and November 2033, and a
£125 million RCF maturing in November 2026. The Group believes it would be
able to refinance these arrangements as they fall due or obtain equivalent
alternative sources of finance. At 30 June 2025 the RCF was £67 million
drawn.
Covenants under the Group's RCF and private placement notes require leverage
of no more than 3 times net debt to adjusted EBITDA(1), and interest cover of
no less than 4 times, tested bi-annually at each reporting date with reference
to the previous 12 months. At 30 June 2025 covenant requirements were met with
significant headroom.
The key uncertainty faced by the Group is the industry demand for its products
in light of macroeconomic factors. Accordingly, the Group has modelled
financial scenarios which see reduction in the industry demands for its
products thereby stress testing the Group's resilience. For each scenario,
cash flow and covenant compliance forecasts have been prepared. In the most
severe but plausible scenario industry demand for Clay products is modelled to
be around 40% lower than 2022 in the second half of 2025, which is materially
worse than the sales reduction seen in 2024, recovering to around 30% lower
than 2022 in 2026. Concrete products are modelled to be 40% lower than 2022 in
the second half of 2025 year, recovering to around 30% lower than 2022 in
2026.
In the severe but plausible scenario, the Group has sufficient liquidity and
headroom against its covenants, with covenant headroom for FY 2025 expressed
as a percentage of annual adjusted EBITDA(1) being around 10%.
In addition, the Group has prepared a reverse stress test to evaluate the
industry demand reduction at which it would be likely to breach the debt
covenants, before any further mitigating actions are taken. This test
indicates that, at a reduction of 44% in sales volumes versus 2022 in H2 2025,
45% in H1 2026 and 44% in FY 2026, the Group would be at risk of breaching its
covenants.
The Directors consider this to be a highly unlikely scenario, and in the event
of an anticipated covenant breach, the Group would seek to take further steps
to mitigate, including the disposal of valuable land and building assets and
additional restructuring steps to reduce the fixed cost base of the Group.
Having taken account of the various scenarios modelled, and in light of the
mitigations available to the Group, the Directors are satisfied that the Group
has sufficient resources to continue in operation for a period of not less
than 12 months from the date of this report. Accordingly, the consolidated
financial information has been prepared on a going concern basis.
3. ALTERNATIVE PERFORMANCE MEASURES
Alternative Performance Measures ("APMs") are used within the management
report where management believes it is necessary to do so in order to provide
further understanding of the financial performance of the Group. Management
uses APMs in its own assessment of the Group's performance and in order to
plan the allocation of capital and other resources. Certain APMs are also used
in the remuneration of management and Executive Directors.
APMs serve as supplementary information for users of the financial statements
and it is not intended that they are a substitute for, or superior to,
statutory measures. None of the APMs are outlined within IFRS and they may not
be comparable with similarly titled APMs used by other companies.
Exceptional items
The Group presents as exceptional at the foot of the Group's Condensed
consolidated income statement those items of income and expense which, because
of their materiality, nature and/or expected infrequency of the events giving
rise to them, merit separate presentation to allow users of the financial
statements to understand further elements of financial performance in the
year. This facilitates comparison with future periods and the assessment of
trends in financial performance over time.
Details of all exceptional items are disclosed in Note 5.
Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBIT represents earnings before interest and taxation and is adjusted
to exclude exceptional items and the incremental depreciation and amortisation
arising from historic fair value uplifts.
Adjusted EBITDA is earnings before interest, taxation, depreciation and
amortisation and is adjusted to exclude exceptional items. Adjusted EBITDA
margin is Adjusted EBITDA expressed as a proportion of revenue.
The Directors regularly use Adjusted EBIT and Adjusted EBITDA margin as key
performance measures in assessing the Group's profitability. The measures are
considered useful to users of the financial statements as they represent
common APMs used by investors in assessing a company's operating performance,
when comparing its performance across periods as well as being used in the
determination of Directors' variable remuneration.
A full reconciliation of Adjusted EBIT and Adjusted EBITDA is included at the
foot of the Group's Condensed consolidated income statement within the
consolidated financial statements. Adjusted EBITDA margin is included within
Note 4.
Adjusted EPS
Adjusted EPS is the basic earnings per share adjusted for exceptional items,
fair value adjustments being the amortisation and depreciation on fair value
uplifted assets and non-cash interest, net of associated taxation on the
adjusting items.
The Directors have presented Adjusted EPS as they believe the APM represents
useful information to the user of the financial statements in assessing the
performance of the Group, when comparing its performance across periods, as
well as being used in the determination of Directors' variable remuneration.
Additionally, the APM is considered by management when determining the
proposed level of ordinary dividend. A full reconciliation is provided in Note
7.
Net debt and Net debt to Adjusted EBITDA ("leverage") ratio
Net debt is defined as the sum of cash and cash equivalents less total
borrowings at the balance sheet date. This does not include lease liabilities
arising upon application of IFRS 16.
The Net debt to Adjusted EBITDA ratio definition removes the operating lease
expense benefit within Adjusted EBITDA generated from IFRS16 compared to IAS
17.
The Directors disclose these APMs to provide information as a useful measure
for assessing the Group's overall level of financial indebtedness and when
comparing its performance and position across periods.
A full reconciliation of the net debt to Adjusted EBITDA ratio (also referred
to as 'leverage') is set out below:
Unaudited Unaudited Audited year
12 month period ended 12 month period ended ended
30/06/2025 30/06/2024 31/12/2024
£'000 £'000 £'000
Net debt (144,506) (137,838) (121,560)
Adjusted EBITDA 77,178 82,196 79,350
Impact of IFRS 16 (11,940) (13,772) (12,134)
Adjusted EBITDA prior to IFRS 16 65,238 68,424 67,216
Ratio of net debt to adjusted EBITDA 2.2x 2.0x 1.8x
Adjusted Return on Capital Employed (Adjusted ROCE)
Adjusted Return on Capital Employed ("Adjusted ROCE") is defined as Adjusted
earnings before interest and taxation as a proportion of the average capital
employed (defined as net debt plus equity excluding the pension surplus). The
average is calculated using the period end balance and corresponding preceding
reported period end balance (year end or interim).
The Directors disclose the Adjusted ROCE APM in order to provide users of the
financial statements with an indication of the relative efficiency of capital
use by the Group over the period, assessing performance between periods as
well as being used within the determination of executives' variable
remuneration.
The calculation of Adjusted ROCE is set out below:
Unaudited Unaudited Audited
12 month period ended 12 month period ended Year ended
30/06/2025 30/06/2024 31/12/2024
£'000 £'000 £'000
Adjusted EBITDA 77,178 82,196 79,350
Less depreciation (33,630) (34,570) (33,619)
Less amortisation (7,100) (6,938) (6,938)
Adjusted earnings before interest and taxation 36,448 40,688 38,793
Average net debt 133,033 119,227 129,699
Average equity 393,075 397,138 394,836
Average pension (7,411) (9,302) (8,305)
Average capital employed 518,697 507,063 516,230
Adjusted ROCE 7.0% 8.0% 7.5%
Average capital employed figures are derived using the following closing
balance sheet values:
30 June 2025 31 December 2024 30 June 2024 31 December 2023
£'000 £'000 £'000 £'000
Net debt 144,506 121,560 137,838 100,616
Equity 390,886 395,263 394,409 399,867
Less: Pension assets (6,982) (7,839) (8,771) (9,832)
Capital employed 528,410 508,984 523,476 490,651
Adjusted effective tax rate
The Group presents an adjusted effective tax rate ("Adjusted ETR") within its
Financial Review. This is disclosed in order to provide users of the financial
statements with a view of the rate of taxation borne by the Group adjusted for
exceptional items (defined above), fair value adjustments being the
amortisation and depreciation on fair value uplifted assets, non-cash interest
and changes in taxation rate on deferred taxation.
A reconciliation of the adjusted ETR to the statutory rate of taxation in the
UK is set out below.
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
Statutory rate of taxation in the UK 25.00% 25.00% 25.00%
Less impact of permanent differences* 1.17% 1.30% 2.36%
Less impact of changes in estimates re. prior periods - (0.14%) (1.34%)
Adjusted ETR 26.17% 26.16% 26.02%
Effect of higher rate applied to deferred tax - 0.24% -
Adjusting items tax impact 0.62% 0.70% 1.01%
Reported ETR 26.79% 27.10% 27.03%
* The impact of permanent differences primarily comprises expenses not
deductible.
Cash flow related APMs
The Group presents an adjusted cash flow statement within its Financial
Review. This is disclosed in order to provide users of the financial
statements with a view of the Group's operating cash generation before the
impact of cash flows associated with exceptional items (as set out in Note 5)
and with the inclusion of interest, lease payment and non-exceptional property
disposal related cash flows.
The Directors use this APM table to allow shareholders to further understand
the Group's cash flow performance in the period, to facilitate comparison with
future years and to assess trends in financial performance. This table
contains a number of APMs, as described below and reconciled in the following
table:
Adjusted change in working capital
Adjusted change in working capital represents the statutory change in working
capital adjusted for cash flows associated with exceptional items arising in
the period of £0.4 million (30 June 2024: £4.2 million; 31 December 2024:
£3.1 million).
Adjusted operating cash flow
Adjusted operating cash flows are the cash flows arising from operating
activities adjusted to exclude cash flows relating to exceptional items of
£3.2 million (30 June 2024: £7.7 million; 31 December 2024: £11.2 million)
but stated after cash flows associated with: interest income; proceeds from
the sale of property, plant and equipment; purchase of intangibles; and lease
payments reclassified from investing or financing activities totalling £2.0
million (30 June 2024: £4.7 million; 31 December 2024: £9.0 million).
Cash conversion
Cash conversion is the ratio of Adjusted operating cash flow (defined above)
to Adjusted EBITDA (defined above). The Directors believe this APM provides a
useful measure of the Group's efficiency of cash management during the period.
Adjusted free cash flow
Adjusted free cash flow represents Adjusted operating cash flow (defined
above) less total capital expenditure. The Directors use the measure of
Adjusted free cash flow as a measure of the funds available to the Group for
the payment of distributions to shareholders, for use within mergers and
acquisitions (M&A) activity and other investing and financing activities.
Reconciliation of statutory cash flow statement to adjusted cash flow
statement
Six months ended 30 June 2025 (unaudited) Statutory Exceptional Reclassification Adjusted
£'000 £'000 £'000 £'000
EBITDA 32,696 2,836 - 35,532
Change in working capital (12,759) 379 - (12,380)
Net interest (4,748) - 114 (4,634)
Tax (2,271) - - (2,271)
Post-employment benefits 625 - (625) -
Other (3,378) - (1,546) (4,924)
Net cash inflow from operating activities 10,165 3,215 (2,057) 11,323
Cash conversion 32%
Total capex (20,942) (20,942)
Free cash flow (10,777) 3,215 (2,057) (9,619)
Six months ended 30 June 2024 (unaudited) Statutory Exceptional Reclassification Adjusted
£'000 £'000 £'000 £'000
EBITDA 34,478 3,226 - 37,704
Change in working capital (23,618) 4,231 - (19,387)
Net interest (4,284) - 47 (4,237)
Tax (501) - - (501)
Post-employment benefits 520 - (520) -
Other (620) 223 (4,222) (4,619)
Operating cash flow 5,975 7,680 (4,695) 8,960
Cash conversion 24%
Total capex (24,422) (24,422)
Free cash flow (18,447) 7,680 (4,695) (15,462)
Year ended 31 December 2024 Statutory Exceptional Reclassification Adjusted
£'000 £'000 £'000 £'000
EBITDA 67,630 11,720 - 79,350
Change in working capital (7,627) 3,103 - (4,524)
Impairment charges 3,832 (3,832) - -
Net interest (8,751) - 139 (8,612)
Tax (500) - - (500)
Post-employment benefits 959 - (959) -
Other (1,644) 212 (8,142) (9,574)
Operating cash flow 53,899 11,203 (8,962) 56,140
Cash conversion 71%
Total capex (45,235) - - (45,235)
Free cash flow 8,664 11,203 (8,962) 10,905
4. SEGMENT REPORTING
The Directors consider the Group's reportable segments to be the Clay and
Concrete divisions.
The key Group performance measure is adjusted EBITDA, as detailed below, which
is defined in Note 3. The tables, below, present revenue and adjusted EBITDA
and profit/(loss) before taxation for the Group's operating segments.
Included within the unallocated and elimination columns in the tables below
are costs including share based payments and Group employment costs.
Unallocated assets and liabilities are pensions, taxation and certain
centrally held provisions. Eliminations represent the removal of inter-company
balances. Transactions between segments are carried out at arm's length. There
is no material inter-segmental revenue and no aggregation of segments has been
applied.
For all periods presented, the activities of Ibstock Futures were managed and
reported as part of the Clay division. Consequently, the position and
performance of Ibstock Futures for all periods has been classified within the
Clay reportable segment.
Six months ended 30 June 2025
Clay Concrete Unallocated Total
& elimination
£'000 £'000 £'000 £'000
Total revenue 133,526 59,919 - 193,445
Adjusted EBITDA 32,822 5,952 (3,242) 35,532
Adjusted EBITDA margin 24.6% 9.9% 18.4%
Exceptional items impacting operating profit (see Note 5) (2,807) (29) - (2,836)
Depreciation and amortisation pre fair value uplift (12,121) (2,619) (71) (14,811)
Incremental depreciation and amortisation following fair value uplift (2,961) (2,427) - (5,388)
Net finance costs (1,122) (279) (3,378) (4,779)
Profit/(loss) before tax 13,811 598 (6,691) 7,718
Taxation (2,067)
Profit for the period 5,651
There were £0.8 million of bill and hold sales included within the Clay
segment's revenue during the six months ended 30 June 2025. At 30 June 2025,
together with the £0.3 million of inventory from the bill and hold sales in
the prior period £1.1 million inventory related to bill and hold sales
remained on the Clay division's premises and £0.2 million on Concrete
division's premises related to prior period bill and hold sales. During the
current period, two customers accounted for greater than 10% of Group
revenues, representing sales of £29.7 million and £19.3 million
respectively. Also included within the Clay segment's Adjusted EBITDA was a
£1.6 million profit from the partial disposal of the Ravenhead land during
the period.
Six months ended 30 June 2024
Clay Concrete Unallocated & elimination Total
£'000 £'000 £'000 £'000
Total revenue 119,412 58,777 - 178,189
Adjusted EBITDA 34,192 7,486 (3,974) 37,704
Adjusted EBITDA margin 28.6% 12.7% 21.2%
Exceptional items impacting operating profit (see Note 5) (3,080) (146) - (3,226)
Depreciation and amortisation pre fair value uplift (11,802) (2,734) (100) (14,636)
Incremental depreciation and amortisation following fair value uplift (2,963) (2,427) - (5,390)
Net finance costs (460) (252) (1,958) (2,670)
Profit/(loss) before tax 15,887 1,927 (6,032) 11,782
Taxation (3,193)
Profit for the period 8,589
There were no bill and hold sales included within revenue during the six
months ended 30 June 2024. At 30 June 2024, £0.7 million of inventory
remained on the Clay division's premises and £0.1 million on Concrete
division's premises related to prior period bill and hold sales. During the
period, one customer accounted for greater than 10% of Group revenues with
£27.2 million of sales across the Clay and Concrete divisions.
Year ended 31 December 2024
Clay Concrete Unallocated & elimination Total
£'000 £'000 £'000 £'000
Total revenue 248,764 117,443 - 366,207
Adjusted EBITDA 72,287 14,646 (7,583) 79,350
Adjusted EBITDA margin 29.1% 12.5% 21.7%
Exceptional items impacting operating profit (see Note 5) (11,336) (384) - (11,720)
Depreciation and amortisation pre fair value uplift (24,188) (5,446) (144) (29,778)
Incremental depreciation and amortisation following fair value uplift (5,926) (4,853) - (10,779)
Net finance costs (1,303) (509) (4,581) (6,393)
Profit/(loss) before tax 29,534 3,454 (12,308) 20,680
Taxation (5,588)
Profit for the year 15,092
Clay Concrete Unallocated Total
Total segment assets £'000 £'000 £'000 £'000
At 30 June 2025 641,463 132,305 12,856 786,624
At 31 December 2024 611,544 127,371 13,190 752,105
At 30 June 2024 615,448 132,635 12,113 760,196
Clay Concrete Unallocated Total
Total segment liabilities £'000 £'000 £'000 £'000
At 30 June 2025 (172,060) (47,434) (176,244) (395,738)
At 31 December 2024 (168,917) (48,023) (139,902) (356,842)
At 30 June 2024 (164,725) (47,785) (153,277) (365,787)
5. EXCEPTIONAL ITEMS
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
£'000 £'000 £'000
Exceptional cost of sales
Impairment charge - Property, plant and equipment - - (1,126)
Impairment reversal - Right-of-use assets - - (2,706)
Total impairment charges - - (3,832)
Redundancy Costs - (135) (581)
Costs associated with the closure of sites (814) (2,884) (5,358)
Total exceptional cost of sales (814) (3,019) (9,771)
Exceptional administrative expenses:
Redundancy costs (70) (207) (992)
Costs associated with the closure of sites (1,952) - (957)
Total exceptional administrative expenses (2,022) (207) (1,949)
Exceptional items impacting operating profit (2,836) (3,226) (11,720)
Included within the current period were the following exceptional items:
Exceptional cost of sales
Other costs associated with restructuring programme represent costs incurred
as a result of the Group's restructuring programme announced during the final
quarter of 2023. These costs include site security, insurance, rates, costs
associated with decommissioning activities and other standing charges in
connection with closed sites. These costs have been categorised as exceptional
due to the materiality of programme costs and non-recurring nature of the
event giving rise to them.
Exceptional Administrative expenses
Exceptional redundancy costs arising in the current period relate to costs of
redundancy of employees within the Group's selling, general and administrative
("SG&A") functions following the Group's restructuring announced in late
2023 and the GRC closure announced in the final quarter of 2024.
The costs have been treated as exceptional due to their materiality, and the
unusual and non-recurring nature of the event giving rise to the costs.
Other costs associated with closure of site relate to other SG&A costs
directly attributable to the Group's cessation of the GRC business announced
in the final quarter of 2024.
Tax on exceptional items
In the current period, the redundancy costs have been treated as tax
deductible. The total tax credit on exceptional items was £0.7 million.
Six-month period ended 30 June 2024 and year ended 31 December 2024
Details of exceptional items included within the prior interim and full year
periods are disclosed within Note 5 of the Group's 2024 interim results and
2024 Annual Report and Accounts, respectively.
6. TAXATION
The taxation charge for the interim period represents an estimate based on the
expected full year effective tax rate.
7. EARNINGS PER SHARE
The basic earnings per share figures are calculated by dividing profit for the
year attributable to the parent shareholders by the weighted average number of
Ordinary Shares in issue during the year. The diluted earnings per share
figures allow for the dilutive effect of the conversion into Ordinary Shares
of the weighted average number of options outstanding during the year. Where
the average share price for the year is lower than the option price the
options become anti-dilutive and are excluded from the calculation. The number
of shares used for the earnings per share calculation are as follows:
Unaudited Unaudited Audited
Half year ended Half year ended 30/06/2024 Year ended 31/12/2024
30/06/2025
(000s) (000s) (000s)
Basic weighted average number of Ordinary Shares 394,228 392,627 393,091
Effect of share incentive awards and options 2,593 4,683 3,372
Diluted weighted average number of Ordinary Shares 396,821 397,310 396,463
The calculation of adjusted earnings per share is a key measurement used by
management that is not defined by IFRS. The adjusted earnings per share
measures should not be viewed in isolation, but rather treated as
supplementary information.
Adjusted earnings per share figures are calculated as the Basic earnings per
share adjusted for impact of deferred taxation rate change, exceptional items,
and fair value adjustments (being the amortisation and depreciation on fair
value uplifted assets and non-cash interest expenses). Adjustments are made
net of the associated taxation on the adjusted items. A reconciliation of the
statutory profit to that used in the adjusted earnings per share1 calculations
is as follows:
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
£000 £000 £000
Profit for the period attributable to the parent shareholders 5,651 8,589 15,092
Add back exceptional costs (Note 5) 2,836 3,226 11,720
Less tax credit on exceptional items (709) (807) (2,930)
Add back incremental depreciation and amortisation following fair value uplift 5,388 5,390 10,779
(Note 4)
Less tax credit on fair value adjustments (1,347) (1,347) (2,695)
Less net non-cash interest income 140 (1,566) (2,219)
Add back tax charge on non-cash interest credit (35) 392 555
Add back impact of deferred taxation rate change (50) 28 -
Adjusted profit for the period attributable to the parent shareholders 11,874 13,905 30,302
Unaudited Unaudited Audited
Half year ended Half year ended 30/06/2024 Year ended 31/12/2024
30/06/2025
pence pence pence
Basic EPS on profit for the period 1.4 2.2 3.8
Diluted EPS on profit for the period 1.4 2.2 3.8
Adjusted basic EPS on profit for the period 3.0 3.5 7.7
Adjusted diluted EPS on profit for the period 3.0 3.5 7.6
8. BORROWINGS
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Cash and cash equivalents 22,588 6,595 9,292
Current
Private placement (330) (330) (339)
Revolving Credit Facility (67,121) (45,095) (31,086)
(67,451) (45,425) (31,425)
Non-current
Private placement (99,643) (99,008) (99,427)
Net debt (144,506) (137,838) (121,560)
At current and prior year end, the Group held £100 million of private
placement notes from PRICOA Private Capital, with maturities of between 2028
and 2033 and an average total cost of funds of 2.19% (range 2.04% - 2.27%).
The agreement contains debt covenant requirements of leverage (net debt to
adjusted EBITDA) and interest cover (adjusted EBITDA to net finance charges)
of no more than 3 times and at least 4 times, respectively, tested
semi-annually on 30 June and 31 December in respect of the preceding 12-month
period.
Additionally, a £125 million RCF facility is held with a syndicate of five
banks for an initial four year period ending in November 2025, which was
extended to November 2026 in 2022. Interest is charged at a margin (depending
upon the ratio of net debt to Adjusted EBITDA) of between 160bps and 260bps
above SONIA, SOFR or EURIBOR according to the currency of the borrowing. The
facility also includes an additional £50 million uncommitted accordion
facility. Based on current leverage, the Group will pay interest under the RCF
at a margin of 210bps. This facility contains debt covenant requirements that
align with those of the private placement with the same testing frequency. As
at 30 June 2025 the RCF was drawn down by £67.0 million (31 December 2024:
£31.0 million, 30 June 2024: £45.0 million).
The carrying value of financial liabilities have been assessed as materially
in line with their fair values, with the exception of £100 million of private
placement notes. The fair value of these borrowings has been assessed as
£88.4 million (31 December 2024: £87.8 million, 30 June 2024: £85.6
million).
No security is provided over the Group's borrowings.
9. IMPAIRMENT
For the year ended 31 December 2024, management completed a detailed
impairment review for the sites that had been announced to be closed, which
resulted in an asset impairment of £3.8 million.
Management also completed detailed testing of value-in-use ("VIU") for the
Group's remaining operating CGUs at 31 December 2024, with no further
impairment charges recognised.
The key assumption used within the VIU calculations are noted below:
Management has used the latest Board approved budget and strategic planning
forecasts in its estimated future cash flows, covering the period 2025 to
2029, which includes assumptions regarding industry demand for the Group's
products.
Clay CGUs:
For the Clay division, these forecasts assume a return to normalised levels of
industry demand for the Group's products (defined as a level of demand in line
with the 2022 year) over the medium term.
Management is of the view that a downside sensitivity, evaluated as an
unforeseen material reduction of greater than 10% in the long-term industry
demand for the Division's products (against a level of demand in line with the
2022 year) could lead to a risk of impairment of the Division's non-current
assets of between £15 million and £25 million.
Roofing CGU:
Following the operational challenges experienced in the Roofing category in
2022, there has been on-going recovery, however output remains below what has
been experienced. Management is of the view that a downside sensitivity,
evaluated as the inability to achieve the planned mid-term output (defined as
a level of demand in line with the 2021 year) by 30%, could lead to a risk of
impairment of the Group's non-current assets at its Leighton Buzzard and
Stretton CGU of between £7 million and £14 million.
The other assumptions used within the VIU calculation are noted below:
1. A pre-tax weighted average cost of capital ("WACC") of 11%-15% was used within
the VIU calculation based on an externally derived rate and benchmarked
against industry peer group companies.
2. Terminal nominal growth rates of 2% were used reflecting long term
inflationary expectations and management's past experience and expectations.
Management is of the view that no reasonable movement in the assumptions of
the WACC or terminal growth rate outlined would result in impairment of the
Group's non-current assets.
At 30 June 2025, in light of the relatively slow recovery across the UK
construction industry, management identified indicators of potential
impairment. Subsequently recoverable amounts across the Group's
cash-generating units (CGUs) were calculated and compared with the carrying
value of the assets that were allocated to the relevant CGUs.
The key assumptions and other assumptions used within the VIU calculation
remained consistent with those applied in 2024 and no impairment charges were
recognised as at 30 June 2025.
10. NOTES TO THE GROUP CASHFLOW STATEMENT
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
30/06/2025 30/06/2024 31/12/2024
Cash flows from operating activities £'000 £'000 £'000
Profit before taxation 7,718 11,782 20,680
Adjustments for:
Depreciation 16,692 16,557 33,495
Impairment of property plant and equipment - - 1,126
Impairment of right-of-use assets - - 2,706
Amortisation of intangible assets 3,507 3,469 7,062
Finance costs 4,779 2,670 6,393
Gain on disposal of property, plant and equipment (1,566) (11) (261)
Research and development expenditure credit (1,950) (1,230) (2,635)
Share based payments 138 874 1,253
Post-employment benefits 625 520 959
Other - (254) (245)
29,943 34,377 70,533
(Increase)/decrease in inventory (4,020) 2,559 (5,633)
Increase in trade and other receivables (11,903) (20,807) (5,529)
Increase/(decrease) in trade and other creditors 4,201 (850) 8,355
Decrease in provisions (1,037) (4,521) (4,820)
Cash generated from operations 17,184 10,758 62,906
The Group has the facility to sell its trade receivables under a non-recourse
arrangement which is subject to a variable fee, based on SONIA plus a margin
of between 130bps and 250bps dependent on the receivables sold. The fee
incurred under this arrangement is included within income statement. At the
balance sheet date, the amount sold was £9.3 million (31 December 2024:
£nil, 30 June 2024: £nil).
11. FINANCIAL INSTRUMENTS
IFRS 13 'Financial Instruments: Disclosures' requires fair value measurements
to be recognised using a fair value hierarchy that reflects the significance
of the inputs used in the measurements, according to the following levels:
Level 1 - Unadjusted quoted prices in active markets for identical assets or
liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices).
Level 3 - Inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs).
At 30 June 2025, 31 December 2024 and 30 June 2024, the Group's fair value
measurements were categorised as Level 2, except for (i) quoted investments
within the Group's pension schemes, which were valued as Level 1 and (ii) the
insured pensioner and deferred pensioner asset, which was categorised as a
Level 3 valuation and uses assumptions set out in Note 12 to align its
valuation to the related liability.
The Group entered into forward currency contracts as cash flow hedges to
manage its exposure to foreign currency fluctuations associated with future
purchases of plant and equipment required for the construction of major
capital expenditure projects. These instruments are measured at fair value
using Level 2 valuation techniques subsequent to initial recognition.
At 30 June 2025, a asset valued at £0.1 million (31 December 2024: a
liability of £0.1 million; 30 June 2024: a liability of £0.1 million) was
recognised for these derivative financial instruments.
At 30 June 2025, 31 December 2024 and 30 June 2024, the Group held no other
significant derivative financial instruments. There were no transfers between
levels during any period disclosed.
The carrying value of the Group's short-term receivables and payables is a
reasonable approximation of their fair values. The fair value of all other
financial instruments carried within the Group's financial statements is not
materially different from their carrying amount, with the exception of £100
million of private placement notes. The fair value of these borrowings has
been assessed as £88.4 million (31 December 2024: £87.8 million, 30 June
2024: £85.6 million).
12. POST EMPLOYMENT BENEFITS
The Group participates in the Ibstock Pension Scheme (the 'Scheme'), a defined
benefit pension scheme in the UK. During the six-month period ended 30 June
2025, the opening Scheme surplus of £7.8 million decreased to a closing
surplus of £6.9 million. Analysis of the movements during the six-month
period ended 30 June 2025 was as follows:
£'000
Scheme surplus at 1 January 2025 (audited) 7,839
Administration expenses (625)
Interest income 202
Remeasurement due to:
- Change in financial assumptions 7,380
- Change in demographic assumptions 357
- Return on plan assets (8,171)
Scheme surplus at 30 June 2025 (unaudited) 6,982
On 20 December 2022, the Scheme completed a full buy-in transaction with a
specialist third-party provider, which represented a significant step in the
Group's continuing strategy of de-risking its pensions exposure. This
transaction, together with the partial buy-in transaction in 2020 insured the
significant majority of the Group's defined benefit liabilities. As a result,
the insured asset and the corresponding liabilities of the Scheme are assumed
to be broadly matched without exposure to interest rate, inflation risk or
longevity risk. However, there is a residual risk that the insurance premium
may be increased following a data cleanse to reflect a more accurate liability
position. If the surplus Scheme assets are insufficient to meet any additional
premium, then the company may need to pay an additional contribution into the
Scheme.
The financial assumptions used by the actuary have been derived using a
methodology consistent with the approach used to prepare the accounting
disclosures at 31 December 2024. The assumptions have been updated based on
market conditions at 30 June 2025:
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Per annum Per annum Per annum
Discount rate 5.55% 5.15% 5.45%
RPI inflation 3.05% 3.25% 3.25%
CPI inflation 2.60% 2.75% 2.75%
Rate of increase in pensions in payment 3.55% 3.65% 3.65%
Mortality assumptions: life expectation at age 65
For male currently aged 65 21.4 years 21.4 years 21.4 years
For female currently aged 65 24.2 years 24.2 years 24.2 years
For male currently aged 40 23.1 years 23.1 years 23.1 years
For female currently aged 40 26.0 years 26.0 years 26.0 years
The impact on the defined benefit obligation to changes in the financial and
demographic assumptions is shown below:
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Present value of defined benefit obligations (313,885) (332,641) (323,097)
0.25% increase in discount rate 8,654 9,669 9,133
0.25% decrease in discount rate (9,080) (10,165) (9,589)
0.25% increase in inflation rate (6,784) (7,459) (6,863)
0.25% decrease in inflation rate 6,533 7,176 6,610
0.25% increase in pension growth rate (6,784) (6,274) (5,432)
0.25% decrease in pension growth rate 6,533 5,815 5,040
1 year increase in life expectancy (12,266) (12,743) (12,390)
1 year decrease in life expectancy 12,345 12,803 12,477
In light of the fact that the pension scheme was in a net surplus position
after the full buy-in, on 27 February 2023 the Trustees and the Group agreed
that the Group would suspend paying regular contributions with effect from 1
March 2023. The schedule of contributions was reviewed again as part of the
30 November 2023 actuarial valuation, and as the net surplus position remained
unchanged, no further contributions were required.
In July 2024, the Court of Appeal confirmed an earlier ruling by the High
Court in the Virgin Media Limited vs NTL Pension Trustees II Limited case that
considered the implications of section 37 of the Pension Schemes Act 1993. The
ruling determined that certain pension plan amendments were invalid unless
accompanied by the correct actuarial confirmation.
On 5 June 2025, the government issued a statement recognising that schemes and
sponsoring employers need clarity around scheme liabilities and member benefit
levels in order to plan for the future further to last year's Court of Appeal
judgement in the Virgin Media pension case. The government is looking to
introduce legislation to give affected pension scheme the ability to
retrospectively obtain written actuarial confirmation that historic benefit
changes met the necessary standards.
In 2024, the Group commenced an assessment of the potential impact of the
Virgin Media ruling, working in collaboration with the Trustees of its
sponsored pension scheme. The Trustees have engaged legal advisers to review
all deeds executed between 6 April 1997 and 5 April 2016. This review includes
deeds related to the Ibstock Pension Scheme as well as those associated with
various other schemes that were subsequently merged into it.
Of the 52 deeds identified, 10 did not have appended actuarial confirmations.
It remains unclear whether amendments were made without the required 'Section
37' confirmation from the Scheme Actuary, introducing uncertainty regarding
the potential impact of these deeds on the valuation of pension obligations.
As at 30 June 2025, the Group is unable to quantify any potential impact on
its pension scheme until the assessment in light of the Virgin Media ruling is
complete. The Group understands that the Trustees have established policies
and procedures to ensure compliance with applicable laws and regulations.
These include regular trustee meetings attended by professional advisers such
as the Scheme Actuary, ongoing involvement of legal counsel, annual scheme
audits, and triennial valuations.
13. PROVISIONS
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Restoration (i) 4,886 4,985 4,405
Dilapidations (ii) 4,181 3,983 3,816
Restructuring (iii) 448 978 1,397
Other (iv) 15 138 419
9,530 10,084 10,037
Current 1,822 3,285 3,010
Non-current 7,708 6,799 7,027
9,530 10,084 10,037
Restoration (i) Dilapidations (ii) Restructuring (iii) Other (iv) Total
£'000 £'000 £'000 £'000 £'000
At 1 January 2025 4,405 3,816 1,397 419 10,037
Utilised - - (949) (407) (1,356)
Charged to income statement 98 219 - 3 320
Unwind of discount/change in rate 383 146 - - 529
At 30 June 2025 4,886 4,181 448 15 9,530
(i) The restoration provision comprises obligations governing site remediation
and improvement costs to be incurred in compliance with applicable
environmental regulations together with constructive obligations stemming from
established practice once the sites have been fully utilised. Provisions are
based upon management's best estimate of the ultimate cash outflows. The key
estimates associated with calculating the provision relate to the cost per
acre to perform the necessary remediation work as at the reporting date
together with determining the expected year of retirement. Climate change is
specifically considered at the planning stage of developments when restoration
provisions are initially estimated. This includes projection of costs
associated with future water management requirements and the form of the
ultimate expected restoration activity. Other changes to legislation,
including in relation to climate change, are factored into the provisions when
legislation becomes enacted. Estimates are reviewed and updated annually based
on the total estimated available reserves and the expected mineral extraction
rates. Whilst an element of the total provision will reverse in the
medium-term (one to ten years), the majority of the legal and constructive
obligations applicable to mineral-bearing land will unwind within a
ten-to-twenty-year timeframe. In discounting the related obligations, expected
future cash outflows have been determined with due regard to extraction status
and anticipated remaining life. Discount rates used are based upon UK
Government bond rates with similar maturities.
(ii) Provisions for dilapidations are recognised on a lease by lease basis and
are based on the Group's best estimate of the likely contractual cash
outflows, which are estimated to occur over the lease term. In house experts
are used periodically in the determination of the best estimate of the
contractual obligation, with expected cash flows discounted based upon UK
Government bond rates with similar maturities.
(iii)The restructuring provision comprised obligations arising from the
Group's cessation of the Glass-reinforced-concrete (GRC) operation, which
involved sites closures and associated redundancy costs. The key estimates
associated with the provision relate to redundancy costs per impacted
employee. All of the cost is expected to be incurred within one year of the
balance sheet date.
(iv)Other provisions include provisions for legal and warranty claim costs,
which are expected to be incurred within one year of the balance sheet date.
14. OTHER RESERVES
Cash flow hedging reserve Merger reserve Own shares held Treasury shares Total other reserves
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2025 (65) (369,119) - (27,907) (397,091)
Other comprehensive income 59 - - - 59
Issue of own shares held on exercise of share options - - - 1,159 1,159
At 30 June 2025 (unaudited) (6) (369,119) - (26,748) (395,873)
Balance at 1 January 2024 (25) (369,119) (514) (30,000) (399,658)
Issue of own shares held on exercise of share options - - 514 148 662
At 30 June 2024 (unaudited) (25) (369,119) - (29,852) (398,996)
Balance at 1 July 2024 (25) (369,119) - (29,852) (398,996)
Other comprehensive income (40) - - - (40)
Issue of own shares held on exercise of share options - - - 1,945 1,945
At 31 December 2024 (audited) (65) (369,119) - (27,907) (397,091)
Cash flow hedging reserve
The cash flow hedging reserve records movements for effective cash flow hedges
measured at fair value. The accumulated balance in the cash flow hedging
reserve will be reclassified to the cost of the designated hedged item in a
future period.
Merger reserve
The merger reserve of £369.1 million arose on the acquisition of Figgs Topco
Limited by Ibstock plc in the period ended 31 December 2015 and is the
difference between the share capital and share premium of Figgs Topco Limited
and the nominal value of the investment and preference shares in Figgs Topco
Limited acquired by the Company.
Own shares held
The Group's holding in its own equity instruments is shown as a deduction from
shareholders' equity at cost. These shares represented shares held in the
Employee Benefit Trust (EBT) to meet the future requirements of the employee
share-based payment plans. Consideration, if any, received for the sale of
such shares is also recognised in equity with any difference between the
proceeds from sale and the original cost being taken to the profit and loss
reserve. No gain or loss is recognised in the income statement on the
purchase, sale, issue or cancellation of equity shares. All remaining shares
held in EBT were issued to meet share option requirements in the prior period.
Treasury share reserve
The Group holds the treasury shares to meet the future requirements of
employee share based payment plans. Consideration, if any, received for the
sale of such shares is also recognised in equity with any difference between
the proceeds from sale and the original cost being taken to the profit and
loss reserve. No gain or loss is recognised in the income statement on the
purchase, sale, issue or cancellation of equity shares.
At 30 June 2025, the treasury shares are shown as a deduction from
shareholders' equity at cost totalling £26.7 million (30 June 2024: £29.9
million, 31 December 2024: £27.9 million).
15. RELATED PARTY TRANSACTIONS
Balances and transactions between Ibstock Plc (the ultimate Parent) and its
subsidiaries, which are related parties, are eliminated on consolidation and
are not disclosed in this note. There were no further material related party
transactions, nor any related party balances in either the 2025 or 2024
financial periods other than remuneration for the Directors and key management
personnel.
16. DIVIDENDS PAID AND PROPOSED
A final dividend for 2024 of 2.5 pence per ordinary share (2023: 3.6 pence)
was paid on 30 May 2025. The Directors have declared an interim dividend of
1.5 pence per ordinary share in respect of 2025 (2024: 1.5 pence), amounting
to a dividend cost of £5.9 million (2024: £5.9 million). The interim
dividend will be paid on 15 September 2025 to all shareholders on the
register at close of business on 22 August 2025.
These condensed consolidated financial statements do not reflect the 2025
interim dividend payable.
17. POST BALANCE SHEET EVENTS
Except for the proposed interim ordinary dividend (see Note 16), no further
subsequent events requiring either disclosure or adjustment to these financial
statements have arisen since the balance sheet date
INDEPENDENT REVIEW REPORT TO IBSTOCK PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated balance sheet, the condensed consolidated statement of changes in
equity, the condensed consolidated cash flow statement and related notes 1 to
17.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of Ibstock Plc (the
"Group") are prepared in accordance with United Kingdom adopted international
accounting standards. The condensed set of financial statements included in
this half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Birmingham, United Kingdom
5 August 2025
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