(Alliance News) - Ibstock PLC on Thursday said trading in its 2021 financial year has been "modestly ahead of expectations" and it remains confident in its prospects.
The FTSE 250-listed manufacturer of clay bricks and concrete products said it has seen "robust" demand from both the new build housing and Repairs, Maintenance & Improvement end markets.
Sales volumes in the Clay division for the first quarter were ahead of internal expectations, whilst Concrete volumes for the quarter were in line with internal expectations, Ibstock said.
The company said it is seeing demand in new-build housing and in repairs, maintenance & improvement and as a result, is recommencing its redevelopment project for its Atlas site in the West Midlands and the adjacent Aldridge brick factory.
A GBP60 million investment in both the Atlas and Aldridge plants will deliver a 115 million brick capacity, Ibstock said, with a GBP12 million earnings before interest, tax, depreciation and amortisation contribution per annum once fully operational in 2024. Once redeveloped, the Atlas plant is expected to be the first net zero carbon brick-manufacturing facility in the UK.
"We've made an encouraging start to 2021, supported by robust demand in both the new build housing and RMI markets. With the market outlook now clearer, we are refocusing on growth. Redevelopment of our wire cut brick facilities in the West Midlands will deliver a significant capacity expansion, further demonstrating our leadership in the clay brick market, which is expected to continue its long-term growth over time. The project is another tangible example of our commitment to the net zero carbon journey and provides a great exemplar of British building products manufacturing," said Chief Executive Joe Hudson.
Shares in Ibstock were up 1.8% at 225.00 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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Ibstock (IBST)