Ibstock PLC on Thursday said it has managed the downturn in the UK building materials market ‘skilfully’ and is in a strong position to benefit from its recovery.

In the meantime, Ibstock said it is managing its costs and cash position, and its expectations for all of 2024 are unchanged.

The Ibstock, Leicestershire-based company offers a range of building products, such as bricks, as well as technical & design services.

Ibstock said adjusted earnings in the third quarter of the year were ‘broadly in line with our expectations’, while sales volumes were similar to a year ago, without providing figures.

It said its expectations for full-year adjusted earnings before interest, tax, depreciation and amortisation were unchanged from guidance provided in August with its half-year results. At the time, Ibstock said it expected adjusted Ebitda in the second half of 2024 to be ‘broadly in line’ with the second half of 2023, when it was £44 million.

Ibstock reported £38 million in adjusted Ebitda for the first half, so this would put full-year adjusted Ebitda at £82 million, down 23% from £107 million in 2023. Adjusted Ebitda was £140 million in 2022.

‘Improving affordability and a more positive evolution of UK housing policy are expected to support a sustained recovery in UK house building over the medium term,’ Ibstock said.

‘We have seen some initial indications of an improvement in new build residential activity during the period, although given the need to rebuild industry supply chains, we continue to expect this to take time to feed through into sustainably stronger demand for our products.’

Ibstock shares were up 0.3% to 193.00 pence in London on Thursday morning.

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