Brick-maker Ibstock displayed remarkable resilience in 2022 and now expects revenue to be £510m, an increase from £409m a year prior.
Despite and increasingly negative outlook on the housing market, Ibstock’s focus on cost management has maintained EBITDA margins and helped cash generation. The company said they saw EBITDA ahead of their previous expectations.
Ibstock did warn of a more challenging year ahead and said volumes in the fourth quarter 2023 were lower than 2021.
Ibstock shares reversed early losses on Wednesday to trade marginally positive at the time of writing.
“Two upgrades in as many trading updates is no mean feat for Ibstock in the current environment. But 2023 is likely to see some bumps in the road. We are already seeing signs that construction activity is being held back among the housebuilders,” said Derren Nathan, Head of Equity Research at Hargreaves Lansdown.
“However, Ibstock has shown that it is an excellent operator, and its focus on innovative products, such as the recent launch of the UK’s first net zero bricks should help soften the impact from a weaker housing market. The balance sheet is also in relatively good shape following the disposal of non-core property assets.”