TIDMIBST
RNS Number : 1681R
Ibstock PLC
25 October 2023
25 October 2023
LEI: 2138003QHTNX34CN9V93
Ibstock Plc
Trading Update
Resilient Q3 performance; expectations for FY23 unchanged
Ibstock Plc ('Ibstock' or the 'Group'), a leading UK
manufacturer of a diverse range of building products and solutions,
announces a trading update for the third quarter of its financial
year ending 31 December 2023 ("the Period").
Trading update
The Group delivered a resilient performance in the third
quarter, reflecting our continued focus on customer service and
execution, coupled with the disciplined management of capacity and
costs.
Market demand in the period was more subdued than expected. As a
result, and in line with the wider UK brick industry, sales volumes
in the third quarter were below those achieved during the second
quarter of the year. Despite these weaker volumes, effective cost
reduction action combined with stable pricing resulted in margins
for the quarter remaining robust.
The Board anticipates that the benefits of its actions will
continue to mitigate demand weakness in the final quarter and,
consequently, its underlying profit expectations for the 2023
financial year are unchanged.
Given the ongoing challenging market conditions, we will
continue to actively manage capacity and costs. In doing so, we
will ensure that our capacity is aligned to market demand, whilst
ensuring we are well positioned to respond when activity levels
recover.
The strength of our balance sheet continues to provide both
resilience in more subdued conditions and strategic optionality for
the future. This is reflected in our ongoing commitment to
capability and growth investment, with key projects progressing
well. We continue to expect our new Atlas factory to commission
from the end of 2023, and to bring to market the UK's first
certified carbon-neutral brick in 2024.
Residential construction markets are expected to remain subdued
in the near term. Notwithstanding this more cautious outlook we
remain confident in our ability to continue to respond
appropriately to market conditions. Furthermore, we will continue
to progress the strategic initiatives that will underpin growth
over the medium term.
Joe Hudson, Chief Executive Officer, commented:
"The Group delivered a resilient performance in the third
quarter despite a very challenging market backdrop. I am proud of
the way that everyone at Ibstock has remained focused on the
delivery of a strong operational performance while also ensuring
that the Group made continued strategic progress.
"As macroeconomic conditions stabilise, we expect a recovery in
market activity, reflecting the significant underlying demand for
new build housing in the UK. Whilst we are taking a cautious view
around the pace and timing of this recovery, we remain confident in
our ability to continue to respond to market conditions, taking the
action necessary to protect performance, while ensuring the
business remains well-positioned for an increase in activity."
Ibstock plc 01530 261 999
Joe Hudson, CEO
Chris McLeish, CFO
Citigate Dewe Rogerson 020 7638 9571
Kevin Smith
Holly Gillis
About Ibstock Plc
Ibstock Plc is a leading UK manufacturer of a diverse range of
building products and solutions. The Group concentrates on eight
core product categories, each backed up by design and technical
services capabilities:
- Bricks and Masonry, Façade Systems, Roofing, Flooring and Lintels,
Staircase and Lift Shafts, Fencing and Landscaping, Retaining Walls
and Rail and Infrastructure.
The Group comprises two core business divisions, Ibstock Clay
and Ibstock Concrete. The Ibstock Futures business was established
in 2021 to accelerate growth in new, fast developing segments of
the UK construction market and, while it remains in its initial
growth phase, forms part of the Clay division.
Ibstock Clay: The leading manufacturer by volume of clay bricks
sold in the United Kingdom. With 15 manufacturing sites, Ibstock
Clay has the largest brick production capacity in the UK. It
operates a network of 18 active quarries located close to its
manufacturing plants. Ibstock Kevington provides masonry and
prefabricated component building solutions, operating from 6
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
14 manufacturing sites across the UK.
Ibstock Futures: Complements the core business divisions by
accelerating diversified growth opportunities which address key
construction trends, including sustainability and the shift towards
Modern Methods of Construction (MMC). Operating from an innovation
hub in the West Midlands, and the Nostell redevelopment in West
Yorkshire.
Ibstock is headquartered in the village of Ibstock,
Leicestershire, with 36 active manufacturing sites across the
UK.
As a leading building products manufacturer, the Group is
committed to the highest levels of corporate responsibility. The
ESG 2030 Strategy sets out a clear path to address climate change,
improve lives and manufacture materials for life, with an ambitious
commitment to reduce carbon emissions by 40% by 2030 and become a
net zero operation by 2040.
Further information can be found at www.ibstock.co.uk
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.
The person responsible for making this announcement is Becky
Parker, Group Company Secretary.
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END
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October 25, 2023 02:00 ET (06:00 GMT)
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