UK brick manufacturing company Ibstock has announced a new £50m business venture in West Yorkshire.
After reporting a strong trading performance for the third-quarter up to 30 September, in a trading update published today (Wednesday), the British company backed its full-year guidance as demand continues in both the new build and repair, maintenance and improvement (‘RMI’) markets.
The business said supply chain impacts, particularly relating to the availability of freight and labour, were being well managed.
It also noted that it had increased product prices successfully against a backdrop of significant input cost inflation, primarily in the categories of energy, freight, carbon and materials.
As a result, the group said it was confident in delivering adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the 2021 financial year in line with its previous guidance.
Joe Hudson, CEO of Ibstock said:
The business also announced the launch of Ibstock Futures – and a £50m investment to create a new automated brick slip systems factory in West Yorkshire to accelerate its growth plans.
It highlighted that brick slips provide “a durable, safe and energy efficient alternative to other cladding solutions” – and said the investment will significantly increase its presence in the fast growing market for brick slip clad walling systems in the offsite and modular construction sectors. Moreover, it announced plans for net zero carbon brick slips to be in production by early 2024.
Joe Hudson continued:
The planned £50 million capital investment will provide capacity for up to 60 million brick slips per year.
The Group said it will give a more detailed update on Ibstock Futures with the full year results in March 2022.
Looking ahead to next year, whilst macro conditions are expected to remain dynamic, the group said it continues to be confident in its ability to make significant further strategic and financial progress.
“Ibstock’s hedging policy positions it well against a backdrop of increasing energy prices: the group’s energy requirements are fully hedged for the remainder of 2021, with around 80% hedged for 2022,” it said.
The company said it is also continuing to explore opportunities to use alternative, lower carbon, fuels in its manufacturing processes.
Shares in Ibstock were up 1.58% at 206.00p per share on the London Stock Exchange on Wednesday morning.