20th Jan 2022 10:09
(Alliance News) - Ibstock PLC announced on Thursday it put in a strong performance in the final quarter of 2021 but it remains "mindful" of supply chains uncertainties and cost inflation.
The Leicester, England-based clay and concrete manufacturer said it expects full-year revenue of GBP409 million, up 29% on its 2020 figure of GBP316 million.
Ibstock said its expectations for adjusted earnings before interest, tax, depreciation and amortisation are "modestly" ahead of its previous expectations. In 2020, it reported adjusted Ebitda of GBP52 million.
The company continued that its cash generation had been ahead of expectations with net debt of GBP40 million at December 31. This is down 42% from GBP69 million at the same time the previous year.
Ibstock said that it had seen a strong performance in the final quarter, driven by robust demand trends and good operational execution. It added that industry-wide supply chain and cost inflation challenges had been "well managed" in the fourth quarter.
Looking forward, Ibstock said the commissioning of capital enhancements meant the company was on track to increase its clay capacity by 5% by mid-2022.
Chief Executive Joe Hudson said: "Customer demand remained resilient in the final quarter and a combination of a strong operational performance and proactive management of inflationary pressures have ensured that Ibstock was able to deliver a strong financial performance for 2021.
"Whilst we are mindful of ongoing uncertainties, including industry supply chain pressure and cost inflation, the good momentum achieved to the end of the year provides us with a strong platform for significant further financial and strategic progress in 2022."
Shares in Ibstock were up 2.1% at 206.35 pence on Thursday morning in London.
By Heather Rydings; [email protected]
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