Ibstock FY revenue and earnings surge

8th Mar 2023 08:08

(Sharecast News) - Brick maker Ibstock said on Wednesday that full-year revenue and profits had both surged in 2022 thanks to a "strong trading performance".

Ibstock stated revenues had risen 26% to £513.0m, driving a 61% jump in pre-tax profits to £105.0m and a 36% increase in adjusted underlying earnings to £140.0m.

The FTSE 250-listed group also stated adjusted EBITDA margins rose 200 basis points to 27.2% and adjusted earnings per share grew 63% to 22.7p.

Return on capital employed increased to 23.4%, up from 15.8% a year earlier and ahead of Ibstock's medium term target of 20%, while on the other hand, net debt increased 18% to £46.0m and adjusted free cashflow slipped 3% to £50.0m.

Looking ahead, Ibstock noted that activity in the early weeks of 2023 had continued to reflect the "more cautious demand environment" seen in the fourth quarter of 2022 and stated it expects conditions to "remain subdued through the early part of 2023", but anticipates this to improve as the year progresses.

Chief executive Joe Hudson said: "These strong results reflect our continued focus on commercial and operational execution, which has enabled the group to deliver significant growth and improved returns despite a challenging backdrop. Revenue and profit were materially ahead of both the prior year and pre-pandemic levels, reflecting the strategic progress we have made over the last five years, with the development of a high quality, lower cost and highly efficient asset base allied to the strength of our market positions.

"Activity in the early weeks of 2023 has continued to reflect the more subdued demand environment experienced towards the end of last year, although we anticipate this to improve as the year progresses. With the strong strategic platform we now have in place, I am confident both in our ability to respond effectively to conditions this year, and to achieve significant growth over the medium-term."

As of 0835 GMT, Ibstock shares were down 0.92% at 160.80p.

Reporting by Iain Gilbert at Sharecast.com