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TW. - Taylor Wimpey News Story

175.95p 0.3  0.2%

Last Trade - 18/05/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £6.40bn
Enterprise Value £5.71bn
Revenue £2.79bn
Position in Universe 153rd / 1824

UPDATE 1-UK's Ibstock ramps up brick capacity to meet housing market demand

Thu 22nd April, 2021 7:56am
(Adds details from the statement, background on the market)
    April 22 (Reuters) - Ibstock  IBST.L  plans to spend 60
million pounds ($83.55 million) to ramp up brick capacity in two
of its sites as a recovery in the UK housing market has fuelled
demand for the building material, the company said on Thursday.
    The investment, which will be funded from its cash flow, in
Atlas and Aldridge plants in the West Midlands will deliver a
115-million brick capacity and add 12 million pounds to core
earnings per year once operational, Ibstock said. 
    Sales volumes in Ibstock's clay business were ahead of
internal expectations for the first quarter, whilst concrete
volumes were in line, the company added. 
    The housing market in the UK has arguably showed the
strongest rebound compared to other pandemic-hit sectors,
including hospitality and travel, propped up by a record-low
interest rate environment and desire for homes suited to
home-working.
    Taylor Wimpey  TW.L , Britain's third-largest homebuilder,
earlier in the day forecast sustained demand due to the interest
rate environment and other support measures.  L4N2MF1IC 
    As the market recovers, domestic demand for clay bricks will
continue to exceed what is available from domestic manufacturing
capacity, Ibstock said.
    "With the market outlook now clearer, we are refocusing on
growth," Chief Executive Joe Hudson said.
    A survey has also showed that a restart in postponed
hospitality, leisure and office projects led to the British
construction activity growing at its fastest pace since 2014
last month.  urn:newsml:reuters.com:*:nL8N2M04NJ
    
          


($1 = 0.7181 pounds)

 (Reporting by Muvija M and Aby Jose Koilparambil in Bengaluru;
Editing by Shailesh Kuber)
 ((Muvija.M@thomsonreuters.com; within UK: +44 20 7542 1810,
outside UK: +91 80 61822698; Twitter: https://twitter.com/muvija_m;))
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