(Alliance News) - Ibstock PLC on Wednesday said it has continued to perform well during the third quarter of 2021 amid strong demand in both the new build & repair and maintenance & improvement markets.
The manufacturer of clay bricks and concrete products said supply chain impacts, particularly relating to the availability of freight and labour, were well managed, with both divisions delivering a resilient operational performance during the three months to September 30.
In addition, Ibstock said it has made progress in identifying opportunities to accelerate its growth and diversify its revenue base by targeting fast growing areas of the UK construction market. In particular, the company said it is targeting technologies, products and solutions aligned to sustainability and the industrialisation of construction processes. To capitalise on this opportunity, Ibstock on Wednesday launched a new business unit, Ibstock Futures.
Ibstock's expectation for Futures is to scale revenue rapidly over the next five years, delivering growth through a combination of both organic and inorganic investment. The company said it will give a more detailed update on Ibstock Futures with the full year results in March 2022.
Finally, Ibstock said it plans to build the UK's first automated brick slip systems factory in Nostell, West Yorkshire. Brick slips provide a durable, safe and energy efficient alternative to other cladding solutions.
The planned GBP50 million capital investment will provide capacity for up to 60 million brick slips per annum, the company said. An initial investment of around GBP38 million, providing capacity to produce 30 million brick slips, will be spread evenly across 2022 and 2023, with the factory commissioning in late 2023. The second phase of investment is expected to be made shortly thereafter as additional capacity is required.
"The Nostell plant is the first of a pipeline of growth initiatives we have in development for Ibstock Futures and we are excited about the potential this new business has to accelerate growth in the years ahead," said Chief Executive Joe Hudson.
Looking to 2022, whilst macro conditions are expected to remain dynamic, the company said it continues to be confident in its ability to make further strategic and financial progress.
FTSE 250-listed Ibstock shares were trading 1.7% higher in London on Wednesday morning at 206.20 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Ibstock (IBST)