(Alliance News) - Ibstock PLC on Thursday said it has made a good start to 2023, despite a "subdued demand environment" in residential new-build home and repair, maintenance & improvement markets.
The Leicestershire, England-based maker of clay and concrete building products said earnings before interest, tax, depreciation and amortisation were ahead slightly ahead of expectations in the first quarter. Ibstock said this was due to disciplined capacity and cost management, as well as "good commercial execution".
The firm noted that cost inflation has slowed in comparison with 2022 levels, adding that it has hedge 95% of energy requirements for the first half of the year, and about 75% for the whole of 2023.
Ibstock said its Atlas, Aldridge and Nostell growth investment projects are making progress, while Ibstock Futures grew in line with expectations in the first quarter.
Chief Executive Officer Joe Hudson said: "We've made a good start to 2023, with Ebitda marginally ahead of our expectations, underpinned by strong operational discipline and good commercial execution. Market conditions were subdued through the early months of 2023, although we expect this to improve as the year progresses.
"Our major organic growth investments remain on track, with our pathfinder factory at Atlas expected to deliver the UK's first carbon-neutral verified bricks by the end of the year, and Ibstock Futures continuing to build capability and scale."
Looking forward, Ibstock said it is confident in meeting market expectations for 2023.
Ibstock shares were down 0.2% to 166.60 pence each in London on Wednesday morning.
By Harvey Dorset, Alliance News reporter
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Ibstock (IBST)