Brickmaker Ibstock is back in profit and stepping up capacity thanks to growing post-Covid demand.
The Leicestershire-headquartered brick and concrete maker reported pre-tax profits of £65 million for 2021, compared to a loss of £24 million in 2020.
By comparison, it reported profits of £82 million in 2019, the year before the pandemic hit.
The group said it now expects revenues to top £600 million by 2026, compared to a turnover of £409 million last year – which was the same as 2019.
Chief executive Joe Hudson said: "Our 2021 results reflect both continued robust demand across our markets and strong operational execution.
“Despite market-wide challenges arising from cost inflation and supply chain pressure, we have delivered a result ahead of the board's expectations, and are well positioned for future growth.
“Whilst we remain mindful of the broader macroeconomic uncertainties, particularly in light of the tragic conflict in Ukraine, we have made a good start to 2022, with a strong demand backdrop.
“This positive momentum, along with additional brick capacity coming on stream during 2022, provides us with a strong platform to deliver significant further financial and strategic progress.
“Today, we also set out a path for growth and value creation over the next five years, combining expansion of our core business with accelerated diversification into new, fast growing areas of the UK construction market.
“These strategic ambitions are underpinned by clear financial objectives and capital discipline, which are reflected in the new medium term financial targets.
“We expect to generate significant additional capital, in excess of our current commitments, over the next five years, which will support both further growth investments and additional shareholder returns.”
Mr Hudson said the business was also investing in sustainable products.
He said: “With the built environment accounting for around 40 per cent of carbon emissions globally, our industry has a vital role to play in delivering climate change solutions.
“With our plans to produce the UK's first net-zero carbon bricks and brick slips well underway, we are supporting our customers in addressing their carbon reduction goals.
“Having achieved many of the environmental targets set in 2018 several years earlier than expected, we have now announced our new ESG strategic framework and targets, including our commitment to be a net zero carbon business by 2040."
