5th Mar 2025 10:19
(Alliance News) - Ibstock PLC on Wednesday cut its payout and reported weaker 2024 earnings, as the building products supplier grappled with "subdued market conditions", though it has seen improved trading so far in 2025.
Shares in the company rose 6.7% to 162.60 pence each in London on Wednesday morning.
Ibstock said pretax profit in 2024 declined 30% to GBP20.7 million from GBP30.1 million in 2023. Revenue fell 9.8% to GBP366.2 million from GBP405.8 million.
Ibstock said it was a "resilient profit performance against the backdrop of subdued market conditions".
"Market demand improved progressively throughout 2024, with revenues in the second half of the year 3% ahead of the equivalent period in 2023 and 6% ahead of H1," it added.
That momentum has continued so far this year, with sales to date "ahead of the comparative period".
"We continue to expect an increase in market volumes in 2025, with momentum building through the year. With the benefit of these anticipated year-on-year volume increases, together with continued effective operational and commercial execution, the group expects to make good progress in 2025, with performance expected to be weighted towards the second half," Ibstock said, looking ahead.
The firm cut its final dividend by 31% to 2.5 pence per share from 3.6p, with the full-year dividend cut 43% to 4.0p from 7.0p.
Chief Executive Officer Joe Hudson said: "We expect an improvement in market volumes in 2025, with momentum building through the year. Ibstock is well-positioned for a market recovery, and the fundamental drivers of demand in our markets remain firmly in place.
"We see a significant opportunity for a new era in housebuilding in the UK and with the investments we have made and our market leadership positions, the group remains well placed to support and benefit from this over the medium term."
By Eric Cunha, Alliance News news editor
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