StockMarketWire.com - Bricks and concrete products group Ibstock lifted its guidance on performance after swinging to a profit as revenue jumped 74% thanks to cost cuts an ongoing recovery in the UK construction sector from the pandemic.

The company said it now expects adjusted earnings before interest, taxes, depreciation, and amortisation, or EBITDA for the 2021 year to be modestly ahead of its previous expectations.

In March 2021, the company indicated it was comfortable with market consensus expectations for 2021 adjusted EBITDA, which at that time was around £93 million.

For the six months ended 30 June 2021, pre-tax profit was £39 million compared with a loss of £52 million last year as revenue jumped 54% to £202 million.

The company declared an interim dividend of 2.5 pence after foregoing a payment in the prior-year period.

'Demand in the initial weeks of the second half has remained robust, although supply chain challenges, principally relating to freight availability and the impact of COVID constraints on factory labour, have become more evident,' the company said.


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