Ibstock PLC (LSE:IBST), the listed clay brick manufacturer, hiked its dividend almost fivefold as it swung back into the black last year on the back of sales recovering to pre-pandemic levels.
A final dividend of 5.0p per share was recommended, bringing the full-year payout to 7.5p per share. In 2020 it was 1.6p per share.
The FTSE 250-listed group said the impact of inflationary pressures on costs were mitigated by a "dynamic commercial approach" in both the clay and concrete segments.
Sales of £409mln for the 2021 calendar year were up 29% on 2020 and in line with 2019, leading to a pre-tax profit of £65mln compared to a £24mln loss in the previous year.
Seeing a "clear path for growth, based on a combination of investment within the core business and diversified growth opportunities", the board unveiled new targets for revenues to surpass £600mln by 2026, with an aim to lift non-clay revenues above 40% of the total. Group adjusted EBITDA margins are expected to exceed 28% over the medium term.
Joe Hudson, chief executive officer, said the firm expects to generate significant additional capital over the next five years, which will support both further growth investments and shareholder returns.
The shares rose 5% to 161.6p by mid-morning on Wednesday.