Ibstock PLC (LSE:IBST) swung back into profit in the first six months of the year and revenue for the UK manufacturer of clay bricks and concrete products came in just 1% below 2019’s pre-Coronavirus level.
It said market fundamentals remain sound, underpinned by robust UK housing demand and good mortgage availability, and noted strong demand from repairs, maintenance and improvement (RMI) markets with UK consumers continuing to prioritise spending on the home.
It returned to an interim pretax profit of £39mln, versus a loss of £52mln in 2020, just short of the £41mln reported for 2019. Revenue jumped to £202mln, from £131mln in the year-earlier period, close to 2019’s £203mln.
Adjusted earnings (EBITDA) jumped to £55mln in the first half.
The company now expects adjusted EBITDA for 2021 to be "modestly ahead" of its previous expectations. In March, it said it was comfortable with market consensus expectations at that time for adjusted EBITDA of about £93mln for the year.
"We are carrying good momentum into the second half and now expect adjusted EBITDA for the year to be modestly ahead of previous expectations, although we are mindful of continuing risks to the UK's economic recovery, and the potential short-term impact of supply chain disruption and inflation on our sector,” said chief executive Joe Hudson.
It noted that demand in the initial weeks of the second half has remained robust, although supply chain challenges, principally relating to freight availability and the impact of COVID-19 constraints on factory labour, have become more evident.