(Sharecast News) - Brick maker Ibstock forecast annual core earnings of £50m after reporting better-than-expected third quarter trade as demand continued to improve after the Covid-19 lockdown.
The company said revenue in the three months to September 30 was at 88% of 2019 levels. Clay and concrete volumes had recovered to around 90% of prior-year levels in September and remained at these levels during the month of October.
"The group exited the third quarter with good momentum and current trading performance is ahead of our previous internal base case for the full year," the company said in a trading update on Wednesday.
"Activity levels in our repair, maintenance and improvement markets and merchant channels remained robust and we benefitted from improving volumes to our housebuilding customers as activity in the new build housing segment increased."
Ibstock said it expected a reduction in net debt by the end of the year, compared to the £103m reported at the half year, ensuring significant headroom under its £215m revolving credit facility, which expires in March 2022, and against the company's renegotiated covenants.
Ibstock (IBST)24 May 2024 15:56