(Alliance News) - Ibstock PLC on Thursday said its first quarter fortunes topped expectations and the clay and concrete manufacturer also announced a GBP30 million buyback.
Shares in the company were 8.3% higher at 180.20 pence each in London on Thursday morning, the best mid-cap performer.
Leicester, England-based Ibstock said demand remained "firm" in the first three months of 2022.
"Our clay plant network is performing well, with production volumes marginally ahead of our expectations, while our dynamic commercial approach has enabled a full recovery of input cost inflation. Solid operational execution in the concrete division ensured it performed in line with our expectations, despite some continuing supply chain challenges," the company said.
Ibstock added that its hedging has positioned it well amid a backdrop of inflationary pressures.
"We have now substantially covered energy requirements for the first half of the year, have purchased around 75% of requirements for the second half and have over one-third covered for 2023. The group remains committed to taking the actions necessary to protect and maintain margins going forwards," it added.
For 2022, it expects its performance to be "modestly ahead of its previous expectations".
In addition, it announced plans for a GBP30 million share buyback programme.
Ibstock explained: "This return of capital is in addition to our committed growth investments of over GBP100 million and, after this repurchase programme, we continue to anticipate significant financial capacity to support further growth investment and additional shareholder returns over the medium term."
By Eric Cunha; ericcunha@alliancenews.com
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Ibstock (IBST)