Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Ibstock Plc, the UK manufacturer of building products and solutions, is expecting full year revenues to have decreased by 10% to around £365 m (from £406 m in 2023), according to a trading update for the year ended 31 December 2024.
Lower sales volumes across the core business are principally to blame, though there was a progressive improvement in volumes across the second half of 2024; revenues in the second half of 2024 were 3% ahead of the same period a year earlier, and 6% ahead of the first half. Adjusted EBITDA for 2024 is expected to be approximately £79m.
Production at the new Atlas factory, which produces the UK’s first externally-verified carbon neutral brick, is ramping up well, piloting a number of new, more sustainable production technologies and processes that could be rolled out across the wider factory network to deliver a further significant reduction in carbon intensity.
We have seen a positive market response to the first phase of our investment in brick slips capacity at Nostell in Yorkshire, with the factory now ramping up to deliver a step change in market volumes from 2025.
During the year, the Group invested c.£45 million of fixed capital, including significant investment in the growth projects discussed above, providing a strong platform to respond as market conditions improve.
The Group expects to make good progress in 2025, with the fundamental drivers underpinning demand in its core markets firmly intact; medium term prospects remain strong.
Joe Hudson, CEO of Ibstock PLC, said: “We are pleased to have delivered a resilient performance, consistent with the guidance we gave at the half year, in a market where revenues continued to be impacted by subdued activity levels. This result reflects our active management of capacity and cost, continued disciplined pricing and a progressive improvement in demand across the second half, as expected.
“Looking to 2025, we expect a further improvement in market volumes to build through the year. We made good strategic progress during 2024 to add efficient and sustainable new capacity to our network and we will continue to bring capacity back into production selectively to support our customers. We see a significant opportunity for a new era in housebuilding in the UK and with the investments we have made and our market leadership positions, the Group remains well placed to support this over the medium term.”
