Ibstock PLC (LSE:IBST) has raised its profit target for the year just ended and said it was containing increases in raw material prices.
Revenues in 2021 rose by 29% to £409mln with underlying profits now expected to be slightly higher than previous expectations and net debt to drop to £40mln.
Joe Hudson, the brick maker's chief executive, added that trading had been robust in the new build housing and the Repairs, Maintenance and Improvement (RMI) sectors, while clay and concrete had seen the most significant inflationary pressures.
Laura Hoy at Hargreaves Lansdown added: “The group’s been successful in passing on ballooning materials costs to customers without upsetting demand, no mean feat considering inflation is at a 30-year high.
“Ibstock’s in a strong position as concerns about a cooling housing market start to creep in as well - the group gets paid as long as the houses are being built, so some stagnation won’t topple the tower.”