Ibstock saw a share price increase of 4.9% to 161.6p on early Wednesday morning trading, after the building materials company returned to profit in its 2021 results.
Ibstock reported a revenue of £409 million against £316 million in 2020.
The company enjoyed a pre-tax profit of £65 million compared to a loss of £24 million in 2020, alongside an adjusted EBITDA of £103 million against £52 million in 2020.
Ibstock announced a total dividend per share of 7.5p compared to 1.6p in 2020.
The building materials group attributed its strong results to strong demand across the clay and concrete markets, noting an outperformance in the clay division.
The company mentioned its committed investment of £50 million over 2022 in Atlas, Aldridge and Nostell projects and cited its objective to supported medium-term growth objectives.
Ibstock also announced that its path for growth in 2022 will be based on a combination of investment within its core businesses, alongside diversified growth opportunities.
The Group reportedly aims to grow revenues in excess of £600 million by 2026, hit an adjusted EBITDA1 margin above 28% over the medium-term and get revenues outside the clay division to exceed 40% of the overall company.
“Our 2021 results reflect both continued robust demand across our markets and strong operational execution,” said Ibstock CEO Joe Hudson.
“Despite market-wide challenges arising from cost inflation and supply chain pressure, we have delivered a result ahead of the Board’s expectations, and are well positioned for future growth.”
“Whilst we remain mindful of the broader macroeconomic uncertainties, particularly in light of the tragic conflict in Ukraine, we have made a good start to 2022, with a strong demand backdrop.”
“This positive momentum, along with additional brick capacity coming on stream during 2022, provides us with a strong platform to deliver significant further financial and strategic progress.”