Ibstock (IBST) Trading Update summary

Resilient performance in 2024

• Adjusted EBITDA reached approximately £79 million, aligning with previous guidance despite a challenging UK construction market.

• Full year revenues declined by 10% to about £365 million due to lower sales volumes, but H2 2024 saw a 3% year-on-year and 6% half-on-half revenue increase.

• Cost management and stable pricing supported performance, with an exceptional cost of up to £6 million recognized for restructuring GRC activities.

Strategic and operational progress

• Investments continued in core business and Ibstock Futures, with key growth projects on track.

• Atlas factory, producing the UK's first externally-verified carbon neutral brick, is ramping up and piloting sustainable technologies.

• Brick slips capacity at Nostell is increasing, with positive market response and higher volumes expected from 2025.

• Integration of Coltman has exceeded expectations, strengthening the national footprint in flooring solutions.

Financial position and outlook

• Year-end net debt was around £122 million, with leverage reduced to 1.8x and £45 million invested in fixed capital.

• 60% of 2025 energy requirements are secured, and the capital investment program is largely complete, providing efficient and sustainable capacity.

• Anticipates improved market conditions in 2025, with momentum building and selective capacity increases to meet demand.

• Medium-term market drivers remain strong, with the group well positioned for future growth.