Brickmaker raises profit expectations on booming housing demand

Brick manufacturer Ibstock has said it expects 2021 earnings to be ahead of expectations when it publishes its annual results in March.

In a trading update, the firm said adjusted earnings would be “modestly ahead” of previous estimates, while turnover will be up 29% to £409m, thanks to booming housing and repair and maintenance demand.

The firm, which is spending £50m on building a new plant in West Yorkshire to create an automated brick slip systems factory capable of producing up to 60 million brick slips a year from 2025, said net debt at the year-end had gone down to around £40m from £69m.

It added supply chain problems such as availability of freight and labour remained but had “continued to be well managed” in the last three months of the year. It said price hikes on its products had offset the costs of increased energy, freight and materials costs.

The firm will release its 2021 results on 9 March.