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Ibstock says demand recovered quicker than it anticipated in 2020 as it resumes dividend payments

Published: 09:49 10 Mar 2021 GMT

Ibstock PLC -

Ibstock PLC (LON:IBST) swung to a pretax loss in 2020 on the impact of the COVID-19 pandemic, although the maker of clay bricks and concrete products said demand recovered quicker than it anticipated as the year progressed and that it will resume dividend payments.

Following an initial sharp contraction in market demand from late March 2020, when the first Government-imposed lockdown started, it noted steady and sustained recovery of demand patterns over remainder of year.

"Market demand recovered faster than our expectations as we progressed through 2020, and trading in the initial period of 2021 has started well, with clay sales volumes slightly ahead of the run rates achieved in Q4 2020," said chief executive Joe Hudson. "While we remain mindful of the economic uncertainties and disruption associated with COVID-19, we are encouraged by the strength of trading over recent weeks and are confident for the year ahead."

The company said it was comfortable with the current market consensus expectations for adjusted EBITDA for 2021.

Ibstock plans to resume dividends with a final dividend payout of 1.6p per share. 

"Looking further forward, market fundamentals remain supportive, underpinned by the UK housing deficit, Government policy and low interest rates," said Hudson. "With a strong management team, clarity on the strategic drivers which will underpin our progress and continued recovery in our core markets, we believe that Ibstock is well placed to re-establish positive earnings momentum and deliver sustainable, profitable growth over the medium term."

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