Ibstock (LON: IBST) shares are down on Wednesday after the group issued a trading update for the period to 30 September 2020.
Group revenues for the period were 88% of those compared to the same period last year.
Ibstock has seen a continuing recovery in demand, with trading conditions improving steadily across the third quarter.
“As volumes have continued to improve, the benefit of the cost and capacity actions taken since the start of the second quarter have resulted in an encouraging recovery in margins across both businesses which are trending towards pre-COVID-19 levels on a run-rate basis,” said the manufacturer of clay bricks and concrete products.
“We have continued to operate our manufacturing sites in line with the recovery in customer demand and to ensure we have capacity in place to deliver on our volume expectations for the final quarter. As has been the priority since the onset of the pandemic, this has been done whilst ensuring the health and safety of our colleagues, with revised working protocols, including social distancing measures and onsite temperature checks, in place at all of the Group’s locations.”
Ibstock adjusted EBITDA for the 2020 financial year to be approximately £50m.
Joe Hudson, the chief executive of Ibstock, commented: “We are encouraged by the continued recovery in demand seen in the third quarter in both our Clay and Concrete businesses, although we remain mindful that there is significant uncertainty in the period ahead.
“We remain confident in the recovery of our markets over time and that the actions we have taken in the business leave us both with the necessary flexibility to meet current challenges and an organisation well positioned to take full advantage of future opportunities,” added Hudson.
Ibstock shares (LON: IBST) are -9.86% at 161,20 (1442GMT). Over the last year, Ibstock share price has been traded in a range of 191.7, hitting a high of 323.6, and a low of 131.9.
