Building products maker Ibstock plc said the market was continuing to get better after stalling at the start of the pandemic.
Management at the Leicestershire headquartered brick and concrete products maker, which has 41 sites around the 海角视频 including three in Staffordshire, said they were encouraged by how things were looking with demand for house building products set to continue.
The business, the 海角视频鈥檚 biggest brickmaker, announced it was shedding 15 per cent of its workforce 鈥 around 375 jobs 鈥 last summer after the construction sector ground to a halt.
It said the job cuts and other savings had all been delivered by the end of the year.
In a trading update for the last three months of 2020, Ibstock said it was now seeing 鈥渟olid鈥 brick sales volumes, with sales of concrete products 鈥渕odestly鈥 ahead of prior year levels.
It said that was down to better than expected demand in new build housing and in the repairs, maintenance and improvement markets.
The strong recovery in the second half of 2020 helped the group achieve revenues of around 拢315 million for the full year 鈥 down a quarter on 2019.
By comparison the second half year performance was down about 10 per cent year-on-year.
Chief executive Joe Hudson said: 鈥淚 am proud of the way that our people have navigated the challenges of 2020, and I would like to thank them all for their continuing effort and commitment.
鈥淥ur focus remains, above all else, on ensuring the health and safety of colleagues, customers and partners across the supply chain.
鈥淗aving taken steps to protect and reshape our business, the group traded ahead of our expectations in the latter part of the year.
鈥淲hile we are mindful of the ongoing uncertainties relating to Covid-19, we are encouraged by the continuing recovery of our markets through the end of 2020 and enter the new year in a strong position to capitalise on the opportunities in front of us.鈥
He said the combination of the strong fourth quarter trading performance and cost cutting meant the group expected to report adjusted EBITDA 鈥 earnings before things such as interest, taxes and depreciation 鈥 for 2020 modestly above the previous guidance of 拢50 million.
Net debt within the business was 拢70 million, compared to 拢85 million a year earlier and 拢103 million last June.
The group has also been able to extend a 拢215 million revolving credit facility by another 12 months to March 2023.
The trading update said: 鈥淟ooking ahead, we are encouraged by recent market trends in the industry and the resilience of demand from our house builder and merchant customers.
鈥淲hilst we remain mindful of ongoing uncertainties, including those related to the future impact of Covid-19 and the expected changes in the Help-to-Buy and stamp duty rules, the good momentum achieved through the end of 2020 provides us with a strong platform for progress in the current year.
鈥淥verall, market fundamentals for the group鈥檚 products remain robust, with a structural deficit of housing, low interest rates, and Government policy which is supportive of the role the construction sector will play in the 海角视频 economic recovery.鈥
