DAVY VIEW

Ibstock’s trading update indicates that adjusted EBITDA for 2021 will be modestly better than its previous expectations after a good end to the year. 2021 presented its challenges, particularly after energy costs rose sharply, but management’s confidence in the group’s longer-term prospects is evident in its capital investment projects. The stock is little changed on where it was this time last year and is not expensively valued. Formal results in March will provide greater colour on the prospects for the business this year as well on its strategic aspirations.