The boss of Britain’s biggest brickmaker said sales for the past few months were ahead of expectations thanks to healthy margins and strong demand for its products.
Ibstock chief executive Joe Hudson said the business was also on a good footing having locked in most of its energy costs for the second part of its current financial year and for a big chunk of next year.
It comes a month after 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 business now expects revenues to top £600 million by 2026, compared to a turnover of £409 million last year – which was the same as 2019.
In an update for the last three months – ahead of its AGM – Mr Hudson said: "We've made a strong start to 2022, supported by robust demand in our end markets and a dynamic commercial approach to manage input price inflation.
“Energy prices remain a key focus and our forward buying policy has ensured that around 75 per cent of H2 2022 requirements are covered, with more than a third of 2023 requirements also locked in.
“Demand in both the new build housing and RMI [repair, maintenance and improvement] markets remains robust and, while we are mindful of the broader macroeconomic uncertainties, we now expect to deliver performance for the full year modestly ahead of our previous expectations.
“We are also pleased to be announcing a £30 million share buyback programme, demonstrating our ability to deliver enhanced returns to shareholders whilst continuing to invest in our future growth."
Ibstock plc is headquartered in the north west Leicestershire former coalmining village of Ibstock, where its predecessor, Ibstock Collieries Ltd, was founded almost 200 years ago.
