(Alliance News) - Ibstock PLC on Wednesday said it swung to a loss in 2020, but it is seeing an improvement in its performance so far in 2021.
The FTSE 250-listed manufacturer of clay bricks and concrete products said revenue declined by 23% in 2020 to GBP316 million from GBP409 million, resulting in it swinging to a pretax loss of GBP24 million from the GBP82 million profit reported in 2019.
Ibstock noted that its revenue performance reflects the impact of Covid-19 pandemic, with significant reductions in both Clay division, down 29%, and Concrete division, down 5%.
Meanwhile, profit was further hurt by exceptional costs of GBP36 million, principally related to Covid-19 and restructuring.
The company chopped its dividend per share for the year to 1.6 pence from 3.2p paid the year before.
Looking forward, Ibstock reported trading in the initial period of 2021 slightly ahead of run rates achieved in the final quarter of 2020. It noted that demand backdrop and recent policy announcements are "encouraging", but said it remains mindful of economic uncertainties and disruption associated with Covid-19.
The company noted that it is comfortable with current market consensus expectations for adjusted earnings before interest, tax, depreciation and amortization for the year. For 2020, adjusted Ebitda was GBP52 million, down 57% year-on-year, reflecting lower sales volumes and impact of operational gearing.
"The group has entered the new financial year with a stronger operational platform in place and a clear focus on the strategic drivers that will re-establish growth and create sustainable, long term earnings momentum in the business," said Chief Executive Joe Hudson.
Ibstock shares were trading 1.2% lower in London on Wednesday morning at 238.40p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Ibstock (IBST)