Interim report
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RNS Number : 2900P Ibstock PLC 05 August 2026 5 August 2026 LEI : 2138003QHTNX34CN9V93 Ibstock Plc Ibstock Plc Interim results for the six months ended 30 June 2026 Focused execution - with continued progress on strategic growth levers for value creation Ibstock Plc ( " Ibstock " or the " Group " ) , a leading UK manufacturer of building products and solutions , announces results for the six months ended 30th June 2026 . • • • Focused execution in a challenging market - increasing clay market share in H1 and gaining momentum in ceramic facades Active management of capacity , production volumes and inventory as well as overhead reduction Continued progress in our five strategic levers , well - placed to deliver growth and value creation as the market returns Statutory Results [ 1 ] Six months ended 30 June 2026 2025 A 1Y % change Revenue £ 164m £ 193m £ ( 29 ) m ( 15.1 ) % ( Loss ) / profit before taxation £ ( 27 ) m £ 8m £ ( 35 ) m > ( 100 ) % LPS / EPS ( 5.1 ) p 1.4p ( 6.4 ) p > ( 100 ) % Interim dividend per share 0.5p 1.5p ( 1.0 ) p ( 66.7 ) % Adjusted Results¹ Six months ended 30 June Adjusted EBITDA¹ Adjusted EBITDA margin¹ Adjusted EPS1 Adjusted free cashflow¹ ROCE¹ Net debt¹ % change 2026 2025 A 1Y £ 26m £ 36m £ ( 10 ) m ( 27.6 ) % 15.7 % 18.4 % ( 270 ) bps ( 14.7 ) % 0.7p 3.0p ( 2.3 ) p ( 76.7 ) % £ ( 22 ) m 3.5 % £ ( 10 ) m £ ( 12 ) m > ( 100 ) % 7.0 % ( 350 ) bps ( 50 ) % £ 151m £ 145m £ 6m higher 4.1 % Financial highlights - a resilient performance against a challenging backdrop • • • • • Reported Revenue down 15 % to £ 164m , 10 % , on a like - for - like basis [ 2 ] . Challenging Q1 , with improvement in brick volume trends in Q2 Clay bricks revenues down 8 % to £ 118m , brick volumes down less than the market and a continued weighting to new - build residential and wire cut demand with weaker RMI and soft mud demand Total UK domestic brick market deliveries for the first five months of the year were down 8 % year - on - year , our comparable brick volumes down 7 % , with domestic clay market share increased in this period Concrete revenues of £ 44 million were down 11 % on a like - for - like basis [ 3 ] Pricing in the period was marginally ahead of comparative period , with annual price increases implemented in February . Further temporary surcharge to mitigate additional energy and fuel related inflation implemented in June
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• Adjusted EBITDA of £26m (2025: £36m), down 28% and EBITDA margin 270 bps lower reflectingheadwinds from deliberate management of production and inventory levels coupled with cost inflation thatwas partially mitigated by cost savings from operational efficiencies • Statutory loss before tax was £27m (2025: £8m profit before tax), with non-cash impairment charge of£25m taken on soft mud facilities as market conditions delay market recovery • Net debt of £151m in line with expectations, reflecting normal seasonal increase in working capital. Leverage[4] at the end of the period was 2.5 times (30 June 2025: 1.9 times) • Interim dividend of 0.5p per share (2025: 1.5p) Continued progress across our five strategic levers: • Driving market leadership through customer engagement, product portfolio cross-selling opportunities andservice • Expansion into adjacent target sectors, particularly public funded education and social housing projects iscreating new routes to market, with early engagement from contractors and increasing demand for multi-product Ibstock solutions • Progress across our innovation strategy, with strong market demand for new products from our Nostellceramic façade facility and Atlas now producing twelve of the planned product lines, including the firstfrom our carbon neutral range • Operational efficiency programme, showing benefits from the pilot sites embedding the Safe & ReliableProduction approach, to improve manufacturing performance, reliability and cost control • Focused progress on unlocking value from our unrivalled land and clay reserves through: ○ The commercialisation of calcined clay - work continues to realise this significant value creationopportunity. Following the expiry of exclusivity with one counterparty, discussions may broaden toinclude alternative partnership opportunities as we seek to maximise long-term value from thisstrategic asset ○ Further work is underway to unlock value from our wider land estate through a combination ofexpanding land-based income streams, alongside land sales. Following further review of our estate,we have identified land sale opportunities of up to £50 million over the next three to five years Current trading and outlook • Private housebuilding and RMI activity levels remain subdued, with conditions expected to remainchallenging in the near term. • With renewed uncertainty around the Middle East conflict coupled with a changing UK political backdrop,we are mindful of the potential near term effects on consumer confidence and the wider constructionsector. Whilst volatility persists, we will continue to focus on managing capacity, inventory levels andcosts and will adapt plans to market conditions. • The business has hedged 85% of energy requirements for the first three quarters of 2026 albeit higherenergy and fuel prices have resulted in increased and uncertain cost inflation which will continue throughH2. A temporary fuel surcharge was implemented in June to mitigate the near-term impact • The Group continues to expect to achieve a stronger adjusted EBITDA in H2 than H1, however with near-term conditions expected to remain challenging, the full year outturn will be around the lower end ofcurrent market expectations[5] • Net debt and leverage expected to reduce, with leverage towards 2 times at the end of 2026, supportedby stronger cash flow generation in H2. • The Board remains confident in the medium-term prospects for the business, although the pace andtiming of the recovery continues to remain uncertain Joe Hudson, Chief Executive Officer said: "Ibstock delivered a solid first-half performance against a backdrop that remains challenging, with focusedexecution delivering results in line with our expectations. We continue to enhance our market leading position withcontinued progress across our strategic levers, and we will continue to adapt capacity, inventory levels and costs to market conditions. Although we expect private housebuilding and RMI activity levels to remain challenging in the near term, the Group expects to achieve a stronger adjusted EBITDA in H2 than H1. Looking ahead, with the investments we have made in our manufacturing network largely complete - driving amore reliable and efficient network, we are well-positioned to capitalise when market conditions improve.Continued progress across our five strategic levers - which includes the breadth of opportunities within our unrivalled land and clay reserves - reinforces our confidence in the Group's ability to create significant long-termvalue." Results presentation Ibstock is holding a presentation at 09:00 BST today at UBS, 5 Broadgate, London EC2M 2QS Please contact ibstock@cdrconsultancy.com to register your in-person attendance. A live webcast of the presentation and Q&A is also available. Please register here for the webcast. An archived version of today's webcast analyst presentation will be available on www.ibstock.co.uk later today.
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Ibstock Plc 01530 261 999 Joe Hudson, CEOSimon Bedford, Interim CFO Citigate Dewe Rogerson 020 7638 9571 Jos BienemanClaire de Groot About Ibstock Plc Ibstock Plc is a leading UK manufacturer of building products and solutions, backed by design and technical services thatcomprises two core divisions: Ibstock Clay: The leading manufacturer by volume of clay bricks sold in the UK, with 15 manufacturing sites served by 15active quarries. Ibstock Kevington provides masonry and prefabricated component building solutions, operating from four sites. Ibstock Concrete: A leading manufacturer of concrete walling, flooring and fencing products, along with lintels and rail &infrastructure products. The concrete division operates from 11 manufacturing sites across the UK. Both divisions are complemented by Ibstock Futures, which was established in 2021 to accelerate growth in new segments ofthe UK construction market and focuses on even more sustainable solutions and Modern Methods of Construction (MMC) fromtwo main locations. The Group's ESG 2030 Strategy sets out a clear path to address climate change, improve lives and manufacture materials forlife, with an ambitious commitment to reduce carbon emissions by 40% by 2030 and become a net zero operation by 2040. Further information can be found at www.ibstock.co.uk Forward-looking statements This announcement contains "forward-looking statements". These forward-looking statements include all matters that are not historical factsand include statements regarding the intentions, beliefs or current expectations of the directors. By their nature, forward-looking statementsinvolve risk and uncertainty because they relate to future events and circumstances that are difficult to predict and outside of the Group's abilityto control. Forward-looking statements are not guarantees of future performance and the actual results of the Group's operations. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Group undertakes no obligationto update or revise publicly any forward-looking statements. Chief Executive's Review Introduction The UK housebuilding environment remains challenging given tensions in the Middle East, coupled with UKpolitical uncertainty impacting the wider UK economy and consumer sentiment. UK brick market deliveries for thefive months ended 31st May 2026 of 562 million were 49 million or 8% below the comparative period. Our focused execution against this very challenging market backdrop has enabled us to deliver a solidperformance, and we have maintained market leadership and achieved an improved brick market share againstthe comparative period. We remain acutely focused on the management of cost, optimising capacity and inventory as well as driving efficiencies throughout the business. Pricing was positive during the first half, with priceincreases implemented in February to mitigate cost inflation. In June we introduced a temporary fuel surcharge tomitigate the impact of higher input costs arising from the Middle East conflict. Innovation remains central to our growth strategy, and we are proud to provide solutions to the UK's built environment needs. Our Atlas pathfinder factory is now complete, and Nostell Horizon is now in the final testingphase of commissioning. We have extended commissioning to enhance capability and widen the product range inresponse to customer input and market demand. Interest is high in these new and innovative façade products and solutions, and first orders for Nostell's new products have been received. The new Fastwall solution has alreadyreceived industry-wide recognition as "Housebuilder New Product" of the year. We are very much looking forwardto welcoming investors to the Nostell factory in the second half of the year, to see first-hand and showcase the innovation and capability of the site. I am also pleased to report that we have continued to make good progress on our sector-leading sustainability andsocial impact agenda, placing a sharper focus on carbon reduction, product innovation and sector-wide skills.From a carbon perspective, we are now more than halfway to achieving our 2030 carbon reduction goal of 40%. In addition, we made progress in several other areas of sustainability such as water reduction and biodiversity. For our own people, we aim to set the benchmark within the industry for people development and our culture ofcare, courage, trust and teamwork as our fundamental values. We are very proud of our Early Careersprogrammes and provide an all-employee development offering with ongoing upskilling opportunities. Ibstock remains committed to building a diverse and inclusive organisation that reflects the communities we serve. Whilst the near-term market is uncertain, our major capital investment programme is now largely complete, leavingus with a more efficient, more reliable, and sustainable manufacturing network. Combined with continued progressacross our five strategic levers, this provides a robust platform for future growth and positions the Group well to capitalise on any improvement in market conditions. The breadth of opportunities within our unrivalled land andclay reserves further reinforces our confidence in the Group's ability to unlock additional long-term value. With ahighly operationally geared business model, we will benefit significantly from a recovery in market volumes and remain confident in our ability to create value for shareholders over the medium term. Financial Performance
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Reported revenue for the period was down by 15% to £164 million (2025: £193 million), and 10% on a like for likebasis, recognising we disposed of non-core Forticrete roofing sites at the end of 2025, which generated approximately £10 million of revenue in H1 2025. The start of the year was particularly challenging given asubdued demand environment and wet weather, before volume trends improved moving into Q2. Pricing in H1 waspositive. We implemented price increases at the beginning of February, and a further surcharge to cover fuel cost inflation was implemented in June. Group adjusted EBITDA of £26 million for the period was down 28% (2025: £36 million) and in line withmanagement expectations. Adjusted EBITDA margins were down 270 bps to 15.7% (2025: 18.4%). As we havepreviously indicated, we have been focused on actively managing capacity, production and inventory levels in the first half and this has resulted in a reduction of 20 million production volume compared to the previous year whichhas had a negative impact on adjusted EBITDA. We were able to mitigate some of the impact from cost inflationthrough price increases and hedging during the period. Our ongoing focus on operational efficiency and central costs is yielding positive results. Statutory loss before tax of £27 million (2025: £8 million profit before tax) reflects a challenging backdrop as wellas margin headwinds coupled with an impairment charge taken on mothballed facilities as market conditions delaymarket recovery. Net debt for the period of £151 million was up 4% compared to the comparative period (2025: £145 million) due to weaker trading, with increase from December 2025 net debt of £120 million due to typical seasonal working capitaleffects coupled with trading impact. Divisional Review Clay: Gaining market share against a challenging backdrop The Clay Division faced a tough start to the year in Q1 with a difficult macro environment. However, this wasfollowed by an improvement in volume trends in Q2, with market share based on published industry dataimproving. Revenues for H1 were £119.9 million versus £133.5 million in the comparative period, Within this, the core Clay business delivered sales of £118.1 million, down 8% (2025: £128.4 million) and Ibstock Futures salesreduced to £1.9 million (2025: £5.2 million) with the closure of Ibstock Telling in H1 2025 and the impact of projectsdelayed at various Gateways linked to the Building Safety Act. Headline pricing was slightly up on the comparative period. We implemented our annual price increase in February, and a temporary fuel and energy related surcharge in June. We continue to see stronger growth withinour new-build housing markets and wire cut bricks. Demand for our soft mud bricks stemming from RMI marketsand the South-East/London regions remains subdued. Adjusted EBITDA of £23.4 million was down 29% (2025: £32.8 million). Adjusted EBITDA margins of 19.5% (2025: 24.6%) reflect volume declines as well as proactive action to dynamically manage capacity, production andstock levels, which creates operating margin headwind on fixed costs and had a negative impact on adjustedEBITDA of around £5- £6 million. The performance of the Ibstock Futures business is reported within the Clay segment with overall loss increasing to £2.5 million (2025: £1.5 million) as the Nostell factory ramps up. Concrete: Challenging RMI market persists but some pick up in rail infrastructure as expected Revenues within the Concrete division were down 11% on a like -for- like basis, but down 26% on a reported basisto £44.2 million (2025: £59.9 million) reflecting the disposal of the Forticrete roofing sites in Q4 2025. The macrobackdrop for the Concrete division is challenging and private residential and RMI sales were down, with flooring categories particularly affected. As anticipated there has been some pickup in rail infrastructure sales. AdjustedEBITDA1 within the division of £3.7 million was down 38%, (2025: £6.0 million). Overall EBITDA margins for thedivision were 8.3% down 160 bps (2025: 9.9%). In addition, we have taken the opportunity to invest in selected concrete sites resulting in lower production as lineswere temporarily offline. This should lead to improvements in the second half of the year. Focus on shareholder value creation: Continued progress across our five strategic levers Ibstock is committed to creating shareholder value over the medium term through five strategic levers, set out atthe time of our full year results. Across these five growth levers, we are executing consistently against our goals, strengthening our business today whilst building additional sources of value and growth for the medium term. ● Market leadership We are focused on strengthening existing customer relationships and routes to market, while capitalising on cross-selling opportunities, leveraging our diverse building products portfolio. Our close customer engagementalso helps inform R&D and future product development, ensuring our pipeline remains aligned to marketneeds. We are also enhancing our use of data and customer insights through the development of a new business intelligence platform and digital tools, helping us better anticipate demand and identify growthopportunities. ● New market sectors offering long term growth opportunity Our focus on adjacent market sectors continues to create new opportunities for growth while reducing relianceon any single core end market. We are increasingly targeting areas underpinned by long-term publicinvestment, including education, social housing and healthcare, where the breadth of our product portfolio enables us to provide integrated solutions across a range of building requirements. The education sectorprovides a strong example of this approach - Through sector-specific solutions aligned to the Department forEducation Construction Framework, we are increasing opportunities to engage with customers earlier, support a broader range of project requirements and expand the Group's share of spend within key accounts.Customer response has been encouraging, with strong engagement from contractors and enquiry levelsahead of initial expectations - reinforcing the opportunity to broaden customer relationships and increase share of wallet across key accounts.
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● Product innovation Innovation is a key driver of growth and differentiation across the Group, with continued progress in developingnew and sustainable products that meet evolving customer needs. In 2025, 25% of Group revenue wasgenerated from new and sustainable products, compared to 13% in 2022, reflecting the growing contribution of innovation to the business. The completion of our Atlas factory marks an important milestone in this journey. Atlas combines lower-cost,more efficient manufacturing with enhanced product capability, and is now producing 12 of the planned newproduct lines. During the period, we launched our first 'Parthfinder' carbon neutral bricks[6] from the facility,demonstrating how investment in manufacturing can support both operational performance and lower-carbonproduct innovation. Elsewhere, our innovation pipeline continues to gain traction, Fastwall from Nostell has already receivedindustry recognition as "Housebuilder New Product", with the Nostell facility attracting strong customer interest and a growing pipeline of enquiries for its capabilities. We have seen encouraging customer interest and initialorders across a number of products launched during the first half. Together, these developments reinforce ourconfidence in the long-term growth potential of our innovation programme. Innovation efforts within our Concrete business are also delivering results. In June, we launched the Ibstock Anderton Gen3 Cable Trough, approved for use across the rail network. Designed to meet the evolvingdemands of rail infrastructure projects, the product offers fast one-person installation and improved on-siteefficiency, reinforcing our position as a trusted partner in the delivery of critical rail infrastructure. ● Efficiencies Safety remains our number one priority. Having invested around £325 million over the past eight years tomodernise our manufacturing network, we now have a safer, more efficient and sustainable estate. Our focus is increasingly on extracting value from these investments through the rollout of our Safe Reliable Production programme. Early benefits from our pilot factory model at Aldridge are already improvingmanufacturing performance, reliability, energy efficiency and cost control - strengthening resilience today whilepositioning the Group to benefit from any future market recovery. We have invested in several improvement projects in both clay and concrete which should start to bringreturns from H2 onwards. Some examples of capital deployed for improvement include projects in concrete floor beams, architectural masonry, lift shaft production and in energy efficiency at one of our largest clayfactories. Beyond manufacturing, we continue to drive efficiency through process simplification, systems improvementand digital enablement. These investments are helping us work more effectively, improve customerengagement and create a stronger platform for long-term value creation. ● Strategic optionality Our fifth strategic lever focuses on unlocking value from our unrivalled land and clay reserves across threeareas of focus. Together, they provide a range of opportunities to create additional long-term value beyond our core operations. We continued to progress the commercialisation of calcined clay during the period, a significant value creation opportunity that leverages our unique clay reserves and supports the industry's transition to lower-carbonconstruction solutions. Following the expiry of exclusivity with a counterparty, discussions may broaden toinclude alternative partnership opportunities as we seek to maximise long-term value from this strategic asset. We now also expect our disciplined land sales programme to deliver ahead of the previously communicated value. Following a further review we now expect this to be around £50 million over the next three to five years,delivered through the release of capital from land that no longer supports long-term strategic or operationalpriorities. This builds on our proven track record of unlocking value from surplus land assets. Our well-established land-based income streams also continue to perform in line with expectations, generating around £2 million of annual income from activities - demonstrating the value of our wider land estate. Thelatest example of a new annual income stream is from our former Dalton Quarry in West Lancashire - we haveentered into a partnership agreement with Green Earth Developments Group (GEDG) to transform the old quarry into a biodiversity habitat bank, generating Biodiversity Net Gain credits that will help support futurehousing, infrastructure and commercial developments right across the Northwest. These three elements together underline the breadth of opportunities within our land and clay reserves,reinforcing our confidence in the Group's ability to create additional long-term value. Group well-placed medium term Market fundamentals in the medium term remain underpinned by much-debated housing shortages, an ageinghousing stock, as well as increasing demand from the public sector. With our market leadership position and focuson innovation - Ibstock is uniquely placed to capitalise on this need, providing solutions across the built environment. Over the last months, we have been acutely focused on managing capacity and driving efficiencies. After a periodof investment, we now have a lower cost, more efficient and sustainable capacity in place, leaving us stronglypositioned for volume recovery. We are mindful that we will only invest in bringing back capacity should we see a period of sustained market recovery. However, when that moment comes and once at full capacity, our upgradedclay factory network will be capable of operating at roughly 40% more than the current level of brick output. Theoperational leverage resulting from any sustained improvement in demand conditions will be significant.
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In addition, we are nearing completion of our major capital expenditure programmes. This, combined with animprovement in trading, significant operational leverage and optionality to unlock value from our unrivalled land and clay reserves will enable us to generate strong cash flow and enhance shareholder returns. Outlook 2026 Whilst uncertainty arising from the Middle East conflict and the UK macro backdrop persists, we continue to bemindful of the potential impacts on consumer confidence and the wider UK economy. We remain alert to these andwill take appropriate and decisive action on cost, capacity and overhead should conditions change. A challenging backdrop is likely to continue in the near-term and the market is expected to remain subdued throughout the year. The Group continues to expect to achieve a stronger adjusted EBITDA in H2 than H1,however with near-term conditions expected to remain challenging, the full year outturn will be around the lowerend of current market expectations, and net debt and leverage expected to reduce. Our continued focus on management of capacity, production and inventory levels creates a margin headwind for the year. However, cost inflation over the course of the year will be partly covered by selling price increases. Weremain focused on driving efficiencies through the business. While the pace and timing of recovery remain uncertain, Ibstock is well-positioned to respond quickly to improvingmarket conditions. Chief Financial Officer's reportIntroduction The Group delivered a solid first-half performance against a backdrop of subdued market demand. Throughtargeted commercial initiatives and strong customer engagement, we increased market share in our clay divisionwhile maintaining positive pricing momentum. Price increases implemented in February, together with thetemporary fuel surcharge introduced in June, helped to partly mitigate the impact of inflationary pressures andhigher input costs arising from the conflict in the Middle East. Adjusted EBITDA1 margin reduced by 270 basis points to 15.7% (2025: 18.4%). As previously indicated, weremained focused on actively managing capacity, production and inventory levels during the period to align withmarket demand. As a result, production volumes were reduced by 20 million units compared with the prior year,impacting manufacturing efficiency and profitability. The Group reported a statutory loss before tax of £26.6 million (2025: profit before tax of £7.7 million), reflectinglower underlying trading performance together with exceptional costs¹ of £25.6 million (2025: £2.8 million),principally driven by a £24.7 million non-cash impairment charge taken on mothballed facilities as marketconditions delay market recovery. Alternative performance measures1 This results statement contains alternative performance measures ("APMs") to aid comparability and furtherunderstanding of the financial performance of the Group between periods. A description of each APM is included inNote 3 to the financial statements. The APMs represent measures used by management and the Board to monitorperformance against budget, and certain APMs are used in the remuneration of management and ExecutiveDirectors and to assess financing covenants. It is not believed that APMs are a substitute for, or superior to,statutory measures. Group results The table below sets out segmental revenue, profit/(loss) before tax and adjusted EBITDA1 for the period Clay Concrete Centralcosts Total Six-month period ended 30 June 2026 £'m £'m £'m £'m Total revenue 119.9 44.3 - 164.2 Adjusted EBITDA1 23.4 3.7 (1.3) 25.7 Margin 19.5% 8.3% 15.7% Loss before tax (20.9) (0.8) (4.9) (26.6) Clay Concrete Centralcosts Total £'m £'m £'m £'m Six-month period ended 30 June 2025 Total revenue 133.5 59.9 - 193.4 Adjusted EBITDA1 32.8 6.0 (3.2) 35.5 Margin 24.6% 9.9% 18.4% Profit/(loss) before tax 13.8 0.6 (6.7) 7.7 1 Alternative Performance Measures are described in Note 3 to the results announcement Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely align to the reported figures Revenue Group revenue for the six months ended 30 June 2026 decreased by 10% to £164.2 million on a like-for-like basis,reflecting continued weakness in UK construction markets. Despite challenging market conditions, the Groupincreased market share and delivered positive pricing through targeted commercial actions and strong customerrelationships. Price increases implemented in February and a temporary fuel surcharge introduced in June helpedmitigate inflationary cost pressures. Reported revenue compares with £193.4 million in the prior period, which
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included £10.9 million of revenue from businesses subsequently exited (Forticrete roofing sites £9.9 million andTelling within Ibstock Futures £1.0 million). Revenue in the Clay division decreased by 10% to £119.9 million (2025: £133.5 million). Within this, the core Claybusiness delivered sales of £118.1 million, down 8% (2025: £128.4 million) reflecting softer market demand.Industry brick deliveries for the five months to 31 May 2026 were 8% below the comparative period, with the claybusiness outperforming the wider market through continued market share gains. Pricing remained positive,supported by the February price increase and the introduction of a temporary fuel and energy surcharge in June.Ibstock Futures sales reported within the Clay division reduced to £1.9 million (2025: £5.2 million) with the closureof Ibstock Telling in H1 2025 and the impact of projects delayed at various Gateways linked to the Building SafetyAct. In our Concrete division, revenue decreased by 11% on a like-for-like basis to £44.3 million (2025: £59.9 millionincluding £9.9 million from the disposed Forticrete roofing sites). The macro backdrop for the Concrete division ischallenging and private residential and RMI sales were down, with flooring categories particularly affected. Asanticipated, demand from rail infrastructure projects showed signs of improvement during the period, providingsome offset to softer activity in residential end markets. Adjusted EBITDA1 Management measures the Group's operating performance using adjusted EBITDA1. Adjusted EBITDA1decreased by £9.8 million to £25.7 million in H1 2026 (H1 2025: £35.5 million). The Group proactively managedcapacity, production and inventory levels to align output which resulted in a reduction of around 20 million ofproduction volume compared to the previous year, reducing manufacturing cost absorption and impactingprofitability. The effect of lower volumes was partially mitigated by positive pricing, the benefits of energy hedgingand continued focus on operational and overhead efficiencies. Within the Clay division, adjusted EBITDA1 totalled £23.4 million (2025: £32.8 million), representing an adjustedEBITDA margin1 of 19.5% (2025: 24.6%). The reduction reflected lower market volumes and reducedmanufacturing cost absorption, as outlined above. The Clay division recognised a net cost of £2.5 million (2025:cost of £1.5 million) in respect of Ibstock Futures, as the Nostell factory ramps up. The Group maintained itsinvestment in research, development and commercial capabilities to support future revenue opportunities,including calcined clay. Within our Concrete division, adjusted EBITDA1 decreased to £3.7 million (2025: £6.0 million), reflects thechallenging macro backdrop within private residential and RMI sectors. The adjusted EBITDA margin1 of 8.3% inconcrete was below the 2025 level of 9.9%.Central costs decreased to £1.3 million (2025: £3.2 million), driven principally by an increased benefit from R&Dtax credits relating to the 2025 financial year. Looking forwards, the Group remains focused on increasing operational efficiency across the factory network andtightly managing indirect cost. Adjusted EBIT1 In order to focus on a more comprehensive measure of operating performance, and in line with a key remunerationmeasure for senior management, the Group also measures and reports the Group's performance using adjustedEBIT1. Adjusted EBIT1 is defined as adjusted EBITDA1 less underlying depreciation and amortisation. For the six months to 30 June 2026, adjusted EBIT1 reduced to £8.6 million (2025: £20.7 million) reflectingreduced trading profits and an increase in underlying depreciation and amortisation to £17.1 million (2025: £14.8million) as Atlas is now fully commissioned. Exceptional items1 Based on the application of our accounting policy for exceptional items1, certain income and expense items havebeen excluded in arriving at adjusted EBITDA1 to aid shareholders' understanding of the Group's underlyingfinancial performance. The amounts classified as exceptional1 in the period totalled a net charge of £25.6 million (2025: £2.8 million),principally driven by a £24.7 million non-cash impairment charge taken on mothballed facilities as marketconditions delay market recovery. Further details of exceptional items1 are set out in Note 5 of the financial statements. Finance costs Net finance costs of £4.5 million were modestly below the level of the prior year (2025: £4.8 million), reflecting aninterest credit arising on the increased discounting of provisions, with average net debt broadly similar with thecomparative period. Profit before taxation Group statutory loss before taxation was £26.6 million (2025: profit £7.7 million), reflecting the lower tradingperformance, as well as an exceptional cost1 of £25.6 million (2025: cost of £2.8 million) principally arising from anon cash impairment charge, as detailed above. Taxation The Group recorded a taxation credit of £6.3 million (2025: charge £2.1 million) on Group pre-tax loss of £26.6million (2025: profit £7.7 million), resulting in an effective tax rate ("ETR") of 23.7% (2025: 26.8%) compared withthe standard rate of UK corporation tax of 25.0% (2025: 25.0%).
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The adjusted ETR1 (excluding the impact of the deferred tax rate change and exceptional items) was 26.0% (2025:26.2%). We continue to expect the adjusted ETR1 for the 2026 year to be around 26%, in line with the rate reported in thefirst half. Earnings per share Group statutory basic loss per share (LPS) was 5.2 pence per share in the six months to 30 June 2026 (2025:earning of 1.4 pence per share) primarily as a result of reduced trading performance in the period coupled with theimpairment charge taken. Group adjusted basic EPS1 of 0.7 pence per share decreased from 3.0 pence last year, reflecting reducedadjusted EBIT1. In line with prior years, our adjusted EPS1 metric removes the impact of exceptional items1, the fairvalue uplifts resulting from our acquisition accounting and non-cash interest impacts, net of the related taxationcharges/credits. Adjusted EPS1 has been included to provide a clearer guide as to the underlying earningsperformance of the Group. A full reconciliation of our adjusted EPS1 measure is included in Note 7. Table 1: Earnings per share 2026pence 2025pence Statutory basic (LPS)/EPS - Continuing operations (5.2) 1.4 Adjusted basic EPS1 - Continuing operations 0.7 3.0 Cash flow and net debt1 Adjusted operating cash flow reduced to a £7.2 million outflow (2025: £11.3 million inflow), reflecting a decrease inadjusted EBITDA1, an increase in working capital outflow of £17.3 million (2025: outflow of £12.4 million). The working capital outflow in the period principally reflected the typical seasonal build in the level of tradereceivables, with inventory levels increasing modestly against the comparative period as trading volumes weresofter than expected. Adjusted net interest paid in the six months to 30 June 2026 increased marginally to £4.7 million (2025: £4.6million), in line with our expectations. Tax payments totalled £1.3 million (2025: £2.3 million). The reduction in payments reflect lower profitability, whichwas partially offset by a smaller tax benefit from capital expenditure write-downs as organic growth projectsconclude Other cash outflows increased by £4.7 million to £9.6 million (H1 2025: £4.9 million outflow). During the period, theGroup invested £1.4 million in carbon emission credits (H1 2025: nil). Operating lease payments increased to £5.7million (H1 2025: £4.9 million) as mobile plant was renewed, coupled with proceeds from the disposal of property,plant and equipment reducing to £0.8 million (H1 2025: £2.8 million). Adjusted free cash flow1 in the period totalled an outflow of £22.3 million (2025: £9.6 million outflow). Capitalexpenditure of £15.2 million decreased by £5.7 million compared to the comparative period (2025: £20.9 million),reflecting the planned wind-down of major organic growth investments and continued discipline over sustainingcapital expenditure. For the full year, we continue to expect total capital expenditure between £25 million and £30 million. Table 2: Cash flow (non-statutory) 2026 2025 Change £'m £'m £'m Adjusted EBITDA1 25.7 35.5 (9.8) Adjusted change in working capital1 (17.3) (12.4) (4.9) Net interest (4.7) (4.6) (0.1) Tax (1.3) (2.3) 1.0 Other2 (9.6) (4.9) (4.7) Adjusted operating cash flow1 (7.2) 11.3 (18.5) Total capex (15.2) (20.9) 5.7 Adjusted free cash flow1 (22.3) (9.6) (12.8) 1 Alternative Performance Measures are described in Note 3 to the consolidated financial statements. 2 Other includes operating lease payments The table above excludes cash outflows relating to exceptional items1 of £3.1 million in 2026 (2025: £3.2 million)arising from the settlement of severance and certain decommissioning activities arising in the period. Net debt1 (borrowings less cash) at 30 June 2026 totalled £151.3 million (31 December 2025: £120.0 million; 30June 2025: £144.5 million). The movement during the six month period reflected the seasonal increase in workingcapital. We expect stronger cash flow generation in the second half of the year, resulting in lower net debt and leveragetowards 2 times at 31 December 2026. The Group's borrowings contain leverage covenants of no greater than 3.0x. Based on the covenant definition,leverage at 30 June 2026 totalled 2.5 times, below the covenant limit. At the balance sheet date, the Group had£63 million of undrawn committed facilities.
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Adjusted return on capital employed1 Adjusted return on capital employed1 (adjusted ROCE) decreased to 3.5% (2025: 7.0%) driven by reduced adjusted EBIT1 on a higher level of capital employed. The increase in capital employed compared to thecomparative period principally reflected the incremental investment in organic growth projects. Capital allocation Our capital allocation framework principles remain consistent with that laid out previously, with the Group focusedon allocating capital in a disciplined and dynamic way. We have refined our order as set out below: ● Firstly, we will prioritise investment to maintain and enhance our existing asset base andoperations;● Secondly, we are focused on a paying an ordinary dividend, with targeted cover ofapproximately 2 times underlying earnings through the cycle;● Thereafter, we deploy capital for in-organic growth or return surplus capital to shareholdersin accordance with our strategic and financial investment criteria. Our framework remains underpinned by our commitment to maintaining a strong balance sheet, and we will look to maintain leverage at between 0.5 and 1.5 times net debt1 to adjusted EBITDA1 excluding the impact of IFRS 16,through the cycle. Dividend The interim dividend reduced to 0.5 pence per share (2025: 1.5p), for payment on 14 September 2026 toshareholders on the register on 21 August 2026. Pensions At 30 June 2026, the defined benefit pension scheme ("the scheme") was in an actuarial accounting surplusposition of £5.2 million (31 December 2025: surplus of £6.0 million; 30 June 2025: surplus of £7.0 million).Applying the valuation principles set out in IAS19, at the half year end the scheme had assets of £312.2 million (31December 2025: £322.9 million; 30 June 2025: £320.9 million) against scheme liabilities of £307.0 million (31December 2025: £316.9 million; 30 June 2025: £313.9 million). On 20 December 2022, the Scheme completed a full buy-in transaction with a specialist third-party provider.Together with the partial buy-in transaction completed with the same counterparty in 2020, this transaction insuredthe significant majority of the Group's defined benefit liabilities. Climate Change & TCFD As a long-term, energy intensive business, a commitment to environmental sustainability and social progress iscentral to our purpose. In 2022 we launched the Group's ESG 2030 Strategy and remain committed to thisapproach. This strategy provides the framework for actions across three key areas: ● Addressing climate change;● Improving lives; and,● Manufacturing materials for life. At the same time, we have identified material transition and physical risks associated with climate change andconsidered the impacts of these on the financial performance and position of the Company, through our viabilityscenario assessment, our impairment testing and assessment of the useful economic lives of our assets. We havealso assessed the resilience of our business model as part of our strategic planning process. The outputs fromthese activities are detailed in our TCFD disclosures contained in the 2025 Annual Report and Accounts. The Group remains committed to increasing the transparency of reporting around climate impacts, risks, andopportunities. This year we continued to enhance our disclosure to ensure full compliance with therecommendations of the Task Force for Climate-related Financial Disclosures (TCFD) and those of Climate-relatedFinancial Disclosure (CFD). Related party transactions Related party transactions are disclosed in Note 15 to the condensed financial statements. During the current andprior year there have been no material related party transactions. Subsequent events Except for the proposed interim ordinary dividend, no further subsequent events requiring either disclosure oradjustment to these financial statements have arisen since the balance sheet date. Going concern The Directors are required to assess whether it is reasonable to adopt the going concern basis in preparing thefinancial statements. In arriving at their conclusion, the Directors have given due consideration to whether the funding and liquidityresources are sufficient to accommodate the principal risks and uncertainties faced by the Group. Having considered the outputs from this work, the Directors have concluded that it is reasonable to adopt a goingconcern basis in preparing the financial statements. This is based on an expectation that the Company and theGroup will have adequate resources to continue in operational existence for at least twelve months from the dateof signing these accounts.
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Further information is provided in note 2 of the financial statements. Principal Risks and Uncertainties This section should be read alongside the Half Year Statement, which provides further detail on events during thefirst six months of the financial year. The Group is exposed to risks and uncertainties that could, individually or collectively, materially affectperformance and shareholder returns. These relate to regulatory and compliance, people and talent management,cyber and information systems, health, safety and environment (HSE), economic conditions, financial riskmanagement, customer and industry, and climate change. The Board assesses and monitors the key risks facing the business. The Group's approach to risk management isset out in Ibstock Plc's Annual Report 2025, available on the Group's corporate website, www.ibstock.co.uk. The Group remains exposed to unfavourable macro-economic conditions, subdued consumer sentiment and aprolonged recovery in UK residential and infrastructure construction markets. These affect several principal risks,including economic conditions, customer and industry, people and talent management, and financial riskmanagement. Following a comprehensive H1 2026 review, the Board concluded that the Group's principal risks and uncertaintiesremain unchanged from the 2025 Annual Report, with clear mitigation actions in place. A full report on the Group's principal risks will be included in the FY 2026 Annual Report and Accounts. The Boardwill continue to monitor these risks during H2, focusing on economic conditions, customer and industry risk, peopleand talent management, financial risk management, cyber security, climate change and HSE. 1Alternative performance measures are described in Note 3 to the interim financial statements. Statement of directors' responsibilities in relation to the half-yearly financial report The directors confirm that to the best of their knowledge: • The condensed set of financial statements has been prepared in accordance with IAS 34 Interim FinancialReporting as contained in UK-adopted IFRS; • The interim management report includes a fair review of the information required by DTR 4.2.4R, DTR4.2.7R and DTR 4.2.8R, namely:a) the condensed set of financial statements gives a true and fair view of the assets, liabilities, financialposition, cash flows and profit or loss of the issuer, and the undertakings included in the consolidationb) an indication of important events that have occurred during the first six months and their impact on thecondensed set of financial statements, and a description of the principal risks and uncertainties for theremaining six months of the financial year; andc) material related party transactions in the first six months and any material changes in the related partytransactions described in the last annual report. By order of the Board: Joe Hudson Richard Akers Chief Executive Officer Chair 4 August 2026 4 August 2026 CONDENSED CONSOLIDATED INCOME STATEMENT for the six months ended 30 June 2026 Unaudited Unaudited Audited Notes Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 £'000 £'000 £'000 Revenue 4 164,218 193,445 372,104 Cost of sales (153,127) (140,972) (276,121) Gross profit 11,091 52,473 95,983 Distribution costs (17,375) (18,693) (36,389) Administrative expenses (18,225) (23,785) (51,798) Total profit on disposal of property, plant and equipment 731 1,566 178 Other income 1,831 1,074 2,340 Other expenses (132) (138) (280) Operating (loss)/profit (22,079) 12,497 10,034 Finance costs (4,753) (5,109) (9,811) Finance income 245 330 673 Net finance cost (4,508) (4,779) (9,138) (Loss)/profit before taxation (26,587) 7,718 896 Taxation 6 6,297 (2,067) 2,178
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(Loss)/profit for the financial period (20,290) 5,651 3,074 (Loss)/profit attributable to: Owners of the parent (20,290) 5,651 3,074 Notes pence per share pence per share pence per share (Loss)/earnings per share Basic 7 (5.1) 1.4 0.8 Diluted 7 (5.1) 1.4 0.8 Non-GAAP measure Reconciliation of adjusted EBIT and adjusted EBITDA to Operating profit for the financial period: Unaudited Unaudited Audited Notes Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 £000 £000 £000 Operating (loss)/profit (22,079) 12,497 10,034 Add back exceptional costs impacting operating profit 5 25,629 2,836 19,478 Add back incremental depreciation and amortisation following fair value uplift 4 5,061 5,388 10,236 Adjusted EBIT* 8,611 20,721 39,748 Add back depreciation and amortisation pre fair value uplift 4 17,109 14,811 31,296 Adjusted EBITDA* 25,720 35,532 71,044 *Alternative performance measures are described in Note 3 to the interim financial statements. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Audited Notes Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 £'000 £'000 £'000 (Loss)/profit for the financial period (20,290) 5,651 3,074 Other comprehensive expense: Items that may be reclassified subsequently to profit or loss Change in fair value of cash flow hedges 14 21 79 64 Cash flow hedge reclassified to profit and loss 14 (21) - - Related tax movements - (20) (20) - 59 44 Items that will not be reclassified to profit or loss Remeasurement of post-employment benefit assets and obligations 12 (577) (434) (1,002) Related tax movements 144 109 324 (433) (325) (678) Other comprehensive expense for the period net of tax (433) (266) (634) Total comprehensive (expense)/income for the period, net of tax (20,723) 5,385 2,440 Total comprehensive (expenses)/income attributable to: Owners of the parent (20,723) 5,385 2,440 CONSOLIDATED BALANCE SHEET Unaudited Unaudited Audited Notes 30/06/2026 30/06/2025 31/12/2025 £'000 £'000 £'000 Assets Non-current assets Intangible assets 61,970 70,443 66,447 Property, plant and equipment 427,907 470,588 455,147 Right-of-use assets 27,320 26,141 23,292 Post-employment benefit asset 12 5,150 6,982 5,984 522,347 574,154 550,870 Current assets Inventories 142,349 128,839 137,448 Current tax receivable 8,221 5,310 3,186 Derivative financial instruments 11 - 15 - Trade and other receivables 47,136 55,718 32,273 Cash and cash equivalents 9,889 22,588 20,971 207,595 212,470 193,878 Total assets 729,942 786,624 744,748
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Current liabilities Trade and other payables (86,441) (92,953) (89,482) Borrowings 8 (61,296) (67,451) (41,152) Lease liabilities (10,703) (9,323) (9,588) Provisions 13 (3,460) (1,822) (5,595) (161,900) (171,549) (145,817) Net current assets 45,695 40,921 48,061 Total assets less current liabilities 568,042 615,075 598,931 Non-current liabilities Borrowings 8 (99,877) (99,643) (99,862) Lease liabilities (22,063) (23,119) (19,922) Deferred tax liabilities (82,826) (93,719) (88,695) Provisions 13 (6,656) (7,708) (7,992) (211,422) (224,189) (216,471) Total liabilities (373,322) (395,738) (362,288) Net assets 356,620 390,886 382,460 Equity Share capital 4,096 4,096 4,096 Share premium 4,458 4,458 4,458 Retained earnings 743,298 778,205 769,760 Other reserves 14 (395,232) (395,873) (395,854) Equity attributable to owners of the parent 356,620 390,886 382,460 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share capital Share premium Retained earnings Other reserves (see Note 14) Total equity attributable to owners of the parent £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2026 4,096 4,458 769,760 (395,854) 382,460 Loss for the period - - (20,290) - (20,290) Other comprehensive expense - - (454) 21 (433) Total comprehensive expense for the period - - (20,744) 21 (20,723) Transactions with owners: Share based payments - - 331 - 331 Deferred tax on share-based payments - - (83) - (83) Equity dividends paid - - (5,925) - (5,925) Issue of own shares held on exercise of share options - - (41) 601 560 At 30 June 2026 (unaudited) 4,096 4,458 743,298 (395,232) 356,620 Balance at 1 January 2025 4,096 4,458 783,800 (397,091) 395,263 Profit for the period - - 5,651 - 5,651 Other comprehensive expense - - (325) 59 (266) Total comprehensive income for the period - - 5,326 59 5,385 Transactions with owners: Share based payments - - 138 - 138 Deferred tax on share-based payments - - (35) - (35) Equity dividends paid - - (9,865) - (9,865) Issue of own shares held on exercise of share options - - (1,159) 1,159 - At 30 June 2025 (unaudited) 4,096 4,458 778,205 (395,873) 390,886 Balance at 1 July 2025 4,096 4,458 778,205 (395,873) 390,886 Profit for the period - - (2,577) - (2,577) Other comprehensive expenses - - (353) (15) (368) Total comprehensive income/(expenses) for the period - - (2,930) (15) (2,945) Transactions with owners: Share based payments - - 346 - 346 Current tax on share based payment - - 45 - 45 Deferred tax on share-based payments - - 48 - 48 Equity dividends paid - - (5,920) - (5,920) Issue of own shares held on exercise of share options - - (34) 34 - At 31 December 2025 (audited) 4,096 4,458 769,760 (395,854) 382,460 CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited Audited
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Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 £'000 £'000 £'000 Cash flow from operating activities Cash generated from operations (Note 10) 2,064 17,184 48,035 Interest paid (3,684) (3,704) (7,776) Other interest paid - lease liabilities (1,046) (1,044) (2,048) Tax (paid)/received (1,300) (2,271) 1,359 Net cash (outflow)/inflow from operating activities (3,966) 10,165 39,570 Cash flows from investing activities Purchase of property, plant and equipment (15,180) (20,942) (44,776) Proceeds from sale of property, plant and equipment 768 2,770 3,134 Proceeds from sale of property, plant and equipment - exceptional - - 31,207 Purchase of intangible assets (1,355) - (1,912) Interest received 35 114 142 Net cash outflow from investing activities (15,732) (18,058) (12,205) Cash flows from financing activities Dividends paid (5,925) (9,865) (15,785) Drawdown of borrowings 56,000 61,000 84,000 Repayment of borrowings (36,000) (25,000) (73,000) Debt issue costs (253) - (1,040) Repayment of lease liabilities (5,737) (4,941) (9,998) Proceeds from issuance of equity shares 560 - - Net cash inflow/(outflow) from financing activities 8,645 21,194 (15,823) Net (decrease)/increase in cash and cash equivalents (11,053) 13,301 11,542 Cash and cash equivalents at beginning of the year 20,971 9,292 9,292 Exchange (losses)/gains on cash and cash equivalents (29) (5) 137 Cash and cash equivalents at end of the period 9,889 22,588 20,971 1. AUTHORISATION OF FINANCIAL STATEMENTS Ibstock Plc ("Ibstock" or "the Group") is a manufacturer of clay bricks and concrete products with operations in theUnited Kingdom. Ibstock Plc is a public company limited by shares, which is incorporated and registered inEngland. The registered office is Leicester Road, Ibstock, Leicestershire, LE67 6HS and the company registrationnumber is 09760850. The interim condensed consolidated financial statements of Ibstock Plc for the six months ended 30 June 2026were authorised for issue in accordance with a resolution of the Directors on 4 August 2026. All discloseddocuments relating to these results are available on the Group's website at www.ibstock.co.uk. Publication of non-statutory accounts The financial information contained in the interim statement does not constitute the Group's statutory accounts asdefined in section 434 of the Companies Act 2006. The comparative figures for the financial year ended 31December 2025, which have been extracted from the statutory accounts for that year, are not the Company'sstatutory accounts for that financial year. Statutory accounts for the year ended 31 December 2025 were approvedby the Board of Directors on 4 March 2026. Those accounts have been reported on by the Company's auditor anddelivered to the Registrar of Companies. The report of the auditor was (i) not qualified, (ii) did not include areference to any matters to which the auditor drew attention by way of emphasis of matter without qualifying theirreport, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 2. BASIS OF PREPARATION The interim condensed consolidated financial statements for the six months ended 30 June 2026 have beenprepared in accordance with UK-adopted International Accounting Standard 34 'Interim Financial Reporting' ascontained in UK-adopted IFRS. They do not include all of the information and disclosures required in the annual financial statements, and shouldbe read in conjunction with the Group's Annual Report and Accounts as at 31 December 2025, which have beenprepared in accordance with UK-adopted International Accounting Standards (IAS). The condensed consolidated financial statements are presented in Sterling and all values are rounded to thenearest thousand, except where otherwise indicated. All accounting policies applied by the Group within the interim condensed consolidated financial statements areconsistent with those applied by the Group in its consolidated financial statements for the year ended31 December 2025, except in respect of taxation, which is based on the expected effective tax rate that would beapplicable to expected annual earnings. The following new amended standard and interpretations have been adopted in the preparation of the condensedconsolidated financial statements: • Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS7).• Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and 7). The adoption of the standard and interpretations listed above has not led to any changes to the Group'saccounting policies or had any other material impact on the financial position or performance of the Group.
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At the date of authorisation of these Interim Financial Statements, several new, but not yet effective, Standards,amendments to existing Standards, and interpretations have been published by the IASB and IFRS InterpretationsCommittee (IFRIC). None of these Standards or amendments to existing Standards have been adopted early bythe Group and no Interpretations have been issued that are applicable and need to be taken into consideration bythe Group at the reporting date. The new Standards, amendments and interpretations not adopted in the currentyear are not expected to have a material impact on the Group's consolidated financial statements, except for IFRS18 'Presentation and Disclosure in Financial Statements', which has an effective date of 1 January 2027. TheGroup is currently working to identify all of the impacts that IFRS 18 will have on the primary financial statementsand notes to the financial statements. IFRS 18 will be applied retrospectively with specific transitional provisions. In preparing the interim condensed consolidated financial statements the Group has assessed the criticalaccounting estimates and judgements applied in the preparation of the consolidated financial statements for theyear ended 31 December 2025. The areas of critical judgement relating to exceptional items (see Note 5),significant source of estimation uncertainty regarding the Group's pension scheme liability valuation assumptionssurrounding future changes in discount rates, inflation, the rate of increase in pensions in payment and lifeexpectancy (see Note 12) and the Group's future cash flows expected to arise from Cash Generating Units(CGUs) assumptions related to long-term industry demand (see Note 9) are still considered critical to thepreparation of the interim financial statements for the period ended 30 June 2026. Going concern Despite the macroeconomic downturn, the Directors do not believe that the going concern basis of preparationrepresents a significant judgement. The Group's financial planning and forecasting process consists of a budget for the next year followed by amedium-term projection. The Directors have reviewed and robustly challenged the assumptions about futuretrading performance, operational and capital expenditure and debt requirements within these forecasts includingthe Group's liquidity and covenant forecasts, and stress testing within their going concern assessment. In arriving at their conclusion on going concern, the Directors have given due consideration to whether the fundingand liquidity resources above are sufficient to accommodate the principal risks and uncertainties faced by theGroup, particularly those relating to economic conditions and operational disruption. The Group's approach to riskmanagement, including its principal risks and uncertainties, is set out in further detail in the Strategic Report withinthe 2025 Annual Report and Accounts. Group forecasts have been prepared which reflect both actual conditions and estimates of the future reflectingmacroeconomic and industry-wide projections, as well as matters specific to the Group.The Group has financing arrangements comprising £100 million of private placement notes with maturitiesbetween November 2028 and November 2033, and a £125 million RCF maturing in November 2029 with one-yearextension option. At 30 June 2026 the RCF was £62 million drawn. Covenants under the Group's RCF and private placement notes require leverage of no more than 3 times net debtto adjusted EBITDA1, and interest cover of no less than 4 times, tested bi-annually at each reporting date withreference to the previous 12 months. At 30 June 2026 covenant requirements were met with headroom. The key uncertainty faced by the Group is the industry demand for its products in light of macroeconomic factors.Accordingly, the Group has modelled financial scenarios which see reduction in the industry demands for itsproducts thereby stress testing the Group's resilience. For each scenario, cash flow and covenant complianceforecasts have been prepared. In the most severe but plausible scenario industry demand for Clay products ismodelled to be around 33% lower than the average demand levels experienced in the past ten years('benchmarked demand levels') in H2 2026 (13% below 2025 levels), recovering to around 28% lower in 2027 (8%below 2025 levels), with management's base case reflecting a modest cyclical recovery following the prolongedsector downturn. In the severe but plausible scenario, the Group has sufficient liquidity and headroom against its covenants, withcovenant headroom for FY 2026 expressed as a percentage of annual adjusted EBITDA1 being in excess of 20%. In addition, the Group has prepared a reverse stress test to evaluate the industry demand reduction at which itwould be likely to breach the debt covenants, before any further mitigating actions are taken. This test indicatesthat, at a reduction of 42% in sales volumes versus the benchmarked demand levels in H2 2026 and a reduction of43% in 2027, the Group would be at risk of breaching its covenants. The Directors consider this to be a highly unlikely scenario, and in the event of an anticipated covenant breach, theGroup would seek to take further steps to mitigate, including the disposal of valuable land and building assets andadditional restructuring steps to reduce the fixed cost base of the Group. Having taken account of the various scenarios modelled, and in light of the mitigations available to the Group, theDirectors are satisfied that the Group has sufficient resources to continue in operation for a period of not less than12 months from the date of this report. Accordingly, the consolidated financial information has been prepared on agoing concern basis. 3. ALTERNATIVE PERFORMANCE MEASURES Alternative Performance Measures ("APMs") are used within the management report where management believesit is necessary to do so in order to provide further understanding of the financial performance of the Group.Management uses APMs in its own assessment of the Group's performance and in order to plan the allocation ofcapital and other resources. Certain APMs are also used by the Group in determining remuneration formanagement and Executive Directors and in assessing compliance with financing covenants. APMs serve as supplementary information for users of the financial statements and it is not intended that they area substitute for, or superior to, statutory measures. None of the APMs are outlined within IFRS and they may notbe comparable with similarly titled APMs used by other companies.
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Exceptional items The Group presents as exceptional at the foot of the Group's Condensed consolidated income statement thoseitems of income and expense which, because of their materiality, nature and/or expected infrequency of the eventsgiving rise to them, merit separate presentation to allow users of the financial statements to understand furtherelements of financial performance in the year. This facilitates comparison with future periods and the assessmentof trends in financial performance over time. Details of all exceptional items are disclosed in Note 5. Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA margin Adjusted EBIT represents earnings before interest and taxation and is adjusted to exclude exceptional items andthe incremental depreciation and amortisation arising from historic fair value uplifts. Adjusted EBITDA is earnings before interest, taxation, depreciation and amortisation and is adjusted to excludeexceptional items. Adjusted EBITDA margin is Adjusted EBITDA expressed as a proportion of revenue. The Directors regularly use Adjusted EBIT and Adjusted EBITDA margin as key performance measures inassessing the Group's profitability. The measures are considered useful to users of the financial statements asthey represent common APMs used by investors in assessing a company's operating performance, whencomparing its performance across periods as well as being used in the determination of Directors' variableremuneration. A full reconciliation of Adjusted EBIT and Adjusted EBITDA is included at the foot of the Group's Condensedconsolidated income statement within the consolidated financial statements. Adjusted EBITDA margin is includedwithin Note 4. Adjusted EPS Adjusted EPS is the basic earnings per share adjusted for exceptional items, fair value adjustments being theamortisation and depreciation on fair value uplifted assets and non-cash interest, net of associated taxation on theadjusting items. The Directors have presented Adjusted EPS as they believe the APM represents useful information to the user ofthe financial statements in assessing the performance of the Group, when comparing its performance acrossperiods, as well as being used in the determination of Directors' variable remuneration. Additionally, the APM isconsidered by management when determining the proposed level of ordinary dividend. A full reconciliation isprovided in Note 7. Net debt and net debt to Adjusted EBITDA ("leverage") ratio Net debt was defined as the sum of cash and cash equivalents less total borrowings at the balance sheet date.This does not include lease liabilities arising upon application of IFRS 16. Following the renewal of the Group's Revolving Credit Facility during the final quarter of 2025, the Group reviewedthe definition of its net debt to Adjusted EBITDA ("Leverage") ratio. To improve transparency and align with theleverage ratio used for banking covenant purposes, the Group has removed the adjustment previously made toexclude the impact of IFRS 16 from Adjusted EBITDA. As a result, the leverage ratio is now presented on thesame basis as the Group's banking covenant definition, enhancing clarity, consistency and comparability for usersof the financial statements. The Directors disclose these APMs to provide information as a useful measure for assessing the Group's overalllevel of financial indebtedness and when comparing its performance and position across periods. Comparative periods have been restated to reflect the revised definition, enabling consistent period-on-periodcomparison. A full reconciliation of the net debt to Adjusted EBITDA ratio (also referred to as 'leverage') is set out below: Unaudited 12 month period ended Unaudited 12 month period ended Audited year ended 30/06/2026 30/06/2025 31/12/2025 (Restated) (Restated) £'000 £'000 £'000 Net debt (151,284) (144,506) (120,043) Adjusted EBITDA 61,232 77,178 71,044 Ratio of net debt to Adjusted EBITDA 2.5x 1.9x 1.7x Adjusted Return on Capital Employed (Adjusted ROCE) Adjusted Return on Capital Employed ("Adjusted ROCE") is defined as Adjusted earnings before interest andtaxation as a proportion of the average capital employed (defined as net debt plus equity excluding the pensionsurplus). The average is calculated using the period end balance and corresponding preceding reported periodend balance (year end or interim). The Directors disclose the Adjusted ROCE APM in order to provide users of the financial statements with anindication of the relative efficiency of capital use by the Group over the period, assessing performance betweenperiods as well as being used within the determination of executives' variable remuneration.
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The calculation of Adjusted ROCE is set out below: Unaudited Unaudited Audited 12 month period ended 12 month period ended Year ended 30/06/2026 30/06/2025 31/12/2025 £'000 £'000 £'000 Adjusted EBITDA 61,232 77,178 71,044 Less depreciation (37,549) (33,630) (35,210) Less amortisation (5,954) (7,100) (6,322) Adjusted earnings before interest and taxation 17,729 36,448 29,512 Average net debt 135,664 133,033 132,275 Average equity 369,540 393,075 386,673 Average pension (5,567) (7,411) (6,483) Average capital employed 499,637 518,697 512,465 Adjusted ROCE 3.5% 7.0% 5.8% Average capital employed figures are derived using the following closing balance sheet values: 30 June 2026 31 December 2025 30 June 2025 31 December 2024 £'000 £'000 £'000 £'000 Net debt 151,284 120,043 144,506 121,560 Equity 356,620 382,460 390,886 395,263 Less: Pension assets (5,150) (5,984) (6,982) (7,839) Capital employed 502,754 496,519 528,410 508,984 Adjusted effective tax rate The Group presents an adjusted effective tax rate ("Adjusted ETR") within its Financial Review. This is disclosed inorder to provide users of the financial statements with a view of the rate of taxation borne by the Group adjustedfor exceptional items (defined above), fair value adjustments being the amortisation and depreciation on fair valueuplifted assets, non-cash interest and changes in taxation rate on deferred taxation. A reconciliation of the adjusted ETR to the statutory rate of taxation in the UK is set out below. Unaudited Unaudited Audited Half year ended Half year ended Year ended 30/06/2026 30/06/2025 31/12/2025 Statutory rate of taxation in the UK 25.00% 25.00% 25.00% Less impact of permanent differences* 1.00% 1.17% 1.81% Less impact of changes in estimates re. prior periods - - (1.29%) Adjusted ETR 26.00% 26.17% 25.52% Adjusting items tax impact (2.32%) 0.62% (268.55%) Reported ETR 23.68% 26.79% (243.03%) * The impact of permanent differences primarily comprises expenses not deductible. The FY 2025 reported effective tax rate was significantly influenced by the combination of a low statutory profitbefore tax of £0.9 million, additional tax base arising on property transactions completed during the year(principally Roofing business disposal), and a favourable prior year tax true-up relating to 2024. Cash flow related APMs The Group presents an adjusted cash flow statement within its Financial Review. This is disclosed in order toprovide users of the financial statements with a view of the Group's operating cash generation before the impact ofcash flows associated with exceptional items (as set out in Note 5) and with the inclusion of interest, leasepayment and non-exceptional property disposal related cash flows. The Directors use this APM table to allow shareholders to further understand the Group's cash flow performance inthe period, to facilitate comparison with future years and to assess trends in financial performance. This tablecontains a number of APMs, as described below and reconciled in the following table: Adjusted change in working capital Adjusted change in working capital represents the statutory change in working capital adjusted for cash outflowsassociated with exceptional items arising in the period of £3.1 million (30 June 2025: cash outflows of £0.4 million;31 December 2025: cash inflows of £4.2 million). Adjusted operating cash flow Adjusted operating cash flows are the cash flows arising from operating activities adjusted to exclude cashoutflows relating to exceptional items of £ 3.1 million (30 June 2025: cash outflow of £3.2 million; 31 December2025: cash outflow of £5.1 million) but stated after cash flows associated with: interest income; proceeds from thesale of property, plant and equipment; purchase of intangibles; and lease payments reclassified from investing or
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financing activities totalling cash outflows of £6.3 million (30 June 2025: cash outflow of £2.1 million; 31 December2025: cash outflow of £9.7 million). Cash conversion Cash conversion is the ratio of Adjusted operating cash flow (defined above) to Adjusted EBITDA (defined above).The Directors believe this APM provides a useful measure of the Group's efficiency of cash management duringthe period. Adjusted free cash flow Adjusted free cash flow represents Adjusted operating cash flow (defined above) less total capital expenditure.The Directors use the measure of Adjusted free cash flow as a measure of the funds available to the Group for thepayment of distributions to shareholders, for use within mergers and acquisitions (M&A) activity and otherinvesting and financing activities. Six months ended 30 June 2026 (unaudited) Statutory Exceptional Reclassification Adjusted £'000 £'000 £'000 £'000 EBITDA 91 25,629 - 25,720 Change in working capital (20,406) 3,111 - (17,295) Inventory write off 948 (948) - - Impairment charges 24,663 (24,663) - - Net interest (4,730) - - (4,730) Tax (1,300) - - (1,300) Post-employment benefits 414 - (414) - Other (3,646) - (5,910) (9,556) Operating cash flow (3,966) 3,129 (6,324) (7,161) Cash conversion -28% Total capex (15,180) (15,180) Free cash flow (19,146) 3,129 (6,324) (22,341) Six months ended 30 June 2025 (unaudited) Statutory Exceptional Reclassification Adjusted £'000 £'000 £'000 £'000 EBITDA 32,696 2,836 - 35,532 Change in working capital (12,759) 379 - (12,380) Net interest (4,748) - 114 (4,634) Tax (2,271) - - (2,271) Post-employment benefits 625 - (625) - Other (3,378) - (1,546) (4,924) Operating cash flow 10,165 3,215 (2,057) 11,323 Cash conversion 32% Total capex (20,942) (20,942) Free cash flow (10,777) 3,215 (2,057) (9,619) Year ended 31 December 2025 Statutory Exceptional Reclassification Adjusted £'000 £'000 £'000 £'000 EBITDA 51,566 19,478 - 71,044 Change in working capital (9,901) (4,228) - (14,129) Impairment charges 6,336 (6,336) - - Write-off of inventory 2,408 (2,408) - - Net interest (9,824) - (898) (10,722) Tax 1,359 - - 1,359 Post-employment benefits 1,247 - (1,247) - Other (3,621) (1,414) (7,529) (12,564) Operating cash flow 39,570 5,092 (9,674) 34,988 Cash conversion 49% Total capex (44,776) - - (44,776) Free cash flow (5,206) 5,092 (9,674) (9,788) 4. SEGMENT REPORTING The Directors consider the Group's reportable segments to be the Clay and Concrete divisions. The key Group performance measure is Adjusted EBITDA, as detailed below, which is defined in Note 3. Thetables below present revenue and Adjusted EBITDA and profit/(loss) before taxation for the Group's operatingsegments. Included within the unallocated and elimination columns in the tables below are costs including share-basedpayments and Group employment costs. Unallocated assets and liabilities are pensions, taxation and certaincentrally held provisions. Eliminations represent the removal of inter-company balances. Transactions betweensegments are carried out at arm's length. There is no material inter-segmental revenue and no aggregation ofsegments has been applied. For all periods presented, the activities of Ibstock Futures were managed and reported as part of the Clay division.Consequently, the position and performance of Ibstock Futures for all periods have been classified within the Clayreportable segment.
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Six months ended 30 June 2026 Clay Concrete Unallocated & elimination Total £'000 £'000 £'000 £'000 Bricks and masonry 118,048 8,154 - 126,202 Fencing and landscaping - 14,048 - 14,048 Flooring and lintels - 16,675 - 16,675 Facades 1,876 - - 1,876 Rail and infrastructure - 4,987 - 4,987 Other - 430 - 430 Total revenue 119,924 44,294 - 164,218 Adjusted EBITDA 23,351 3,674 (1,305) 25,720 Adjusted EBITDA margin 19.5% 8.3% 15.7% Exceptional items impacting operating profit (see Note 5) (25,683) 53 1 (25,629) Depreciation and amortisation pre fair value uplift (14,827) (2,214) (68) (17,109) Incremental depreciation and amortisation following fair value uplift (3,054) (2,007) - (5,061) Net finance costs (653) (317) (3,538) (4,508) loss before tax (20,866) (811) (4,910) (26,587) Taxation 6,297 Loss for the period (20,290) There were £0.1 million of bill and hold sales included within the Concrete segment's revenue during the sixmonths ended 30 June 2026. At 30 June 2026, together with the £0.2 million of inventory from the bill and holdsales in the prior periods £0.3 million inventory related to bill and hold sales remained on the Concrete division'spremises and £1.1 million on Clay division's premises related to prior periods bill and hold sales. During the currentperiod, two customers accounted for greater than 10% of Group revenues, representing sales of £26.2 million and£17.9 million respectively. Also included within the Clay segment's Adjusted EBITDA was a gain of £0.6 million arising on a second sale of Ravenhead land during the period. Six months ended 30 June 2025 Clay Concrete Unallocated & elimination Total £'000 £'000 £'000 £'000 Total revenue 133,526 59,919 - 193,445 Adjusted EBITDA 32,822 5,952 (3,242) 35,532 Adjusted EBITDA margin 24.6% 9.9% 18.4% Exceptional items impacting operating profit (see Note 5) (2,807) (29) - (2,836) Depreciation and amortisation pre fair value uplift (12,121) (2,619) (71) (14,811) Incremental depreciation and amortisation following fair value uplift (2,961) (2,427) - (5,388) Net finance costs (1,122) (279) (3,378) (4,779) Profit/(loss) before tax 13,811 598 (6,691) 7,718 Taxation (2,067) Profit for the period 5,651 There were £0.8 million of bill and hold sales included within the Clay segment's revenue during the six monthsended 30 June 2025. At 30 June 2025, together with the £0.3 million of inventory from the bill and hold sales in theprior period £1.1 million inventory related to bill and hold sales remained on the Clay division's premises and £0.2million on Concrete division's premises related to prior period bill and hold sales. During the period, two customersaccounted for greater than 10% of Group revenues, representing sales of £29.7 million and £19.3 millionrespectively. Also included within the Clay segment's Adjusted EBITDA was a £1.6 million profit from the partialdisposal of the Ravenhead land during the period. Year ended 31 December 2025 Clay Concrete Unallocated & elimination Total £'000 £'000 £'000 £'000 Total revenue 259,997 112,107 - 372,104 Adjusted EBITDA 68,062 9,289 (6,307) 71,044 Adjusted EBITDA margin 26.2% 8.3% 19.1% Exceptional items impacting operating profit (see Note 5) (17,453) (1,974) (51) (19,478) Depreciation and amortisation pre fair value uplift (25,858) (5,299) (139) (31,296) Incremental depreciation and amortisation following fair value uplift (6,080) (4,156) - (10,236) Net finance costs (1,850) (268) (7,020) (9,138) Profit/(loss) before tax 16,821 (2,408) (13,517) 896 Taxation 2,178 Profit for the year 3,074 Clay Concrete Unallocated Total Total segment assets £'000 £'000 £'000 £'000
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At 30 June 2026 622,561 93,994 13,387 729,942 At 31 December 2025 636,724 95,308 12,716 744,748 At 30 June 2025 641,463 132,305 12,856 786,624 Clay Concrete Unallocated Total Total segment liabilities £'000 £'000 £'000 £'000 At 30 June 2026 (161,729) (42,271) (169,322) (373,322) At 31 December 2025 (170,731) (41,424) (150,133) (362,288) At 30 June 2025 (172,060) (47,434) (176,244) (395,738) 5. EXCEPTIONAL ITEMS Unaudited Unaudited Audited Half year ended Half year ended Year ended 30/06/2026 30/06/2025 31/12/2025 £'000 £'000 £'000 Exceptional cost of sales Impairment charge - Property, plant and equipment (24,663) - (6,141) Impairment charge - Right-of-use assets - - (195) Total impairment charges (24,663) - (6,336) Inventory write off (948) - (2,408) Redundancy Costs 118 - (1,904) Costs associated with the closure of sites (9) (814) (1,135) Total exceptional cost of sales (25,502) (814) (11,783) Exceptional administrative expenses: Redundancy costs 18 (70) (2,239) Costs associated with the closure of sites (145) (1,952) (3,699) Total exceptional administrative expenses (127) (2,022) (5,938) Exceptional profit on disposal of property, plant and equipment - - (1,757) Exceptional items impacting operating profit (25,629) (2,836) (19,478) Total exceptional items (25,629) (2,836) (19,478) In the second half of 2025, the Group announced a restructuring programme in response to weaker than expectedmarket volumes and adverse pricing dynamics, together with revised industry forecasts signalling a prolongeddownturn in construction and RMI activity. In the current period, management refined its demand forecasts based on the latest market information, whichresults in a further impairment of property, plant and equipment of £24.7 million and further write-off of inventory of£0.9 million. During the period, the exceptional charge arising from the restructuring programme relating to the cessation of theGlass Reinforced Concrete (GRC) business, initiated in 2024, was £0.2 million. This was offset by a £0.2 millioncredit arising from the 2025 restructuring programme. In addition, the Group recognised impairment charges andinventory write off of £25.6 million, reflecting the delayed market recovery experienced during H1 2026. Included within the current period were the following exceptional items: Exceptional cost of sales Impairment charges recognised in the current period relate to the impairment of non-current assets, as set out inNote 9. Inventory write-offs relate to inventories associated with site that have been temporarily closed, for which the netrealisable value was assessed as nil. Redundancy cost credits recognised in the current period relate to the reassessment of redundancy provisions foremployees within the Group's manufacturing operations following the restructuring programme announced in thesecond half of 2025. Other costs associated with site closure comprise costs incurred as a consequence of restructuring actions andsite closure decisions implemented in prior periods. These items have been classified as exceptional because they arise from the Group's material, single coordinatedrestructuring programmes announced in 2024 and 2025, together with the delayed market recovery experienced inH1 2026. They are considered significant by virtue of their size and nature. Exceptional Administrative expenses Exceptional redundancy cost credit recognised in the current period relates to the reassessment and release ofredundancy provisions for employees within the Group's selling, general and administrative ("SG&A") functionsfollowing the restructuring programme announced in the second half of 2025. Other costs associated with closure of site primarily comprise SG&A costs directly attributable to the Group'scessation of its GRC business, which was announced in the final quarter of 2024
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These items have been classified as exceptional as they arise from material restructuring and business cessationactivities and are significant by virtue of their size and nature. Cash flow on exceptional items During the period, exceptional cash outflows relating to the Group's restructuring programmes totalled £3.1 million.This comprised £0.3 million of costs recognised in the income statement and settled during the period, togetherwith £2.8 million of cash outflows in respect of provisions recognised in prior periods. Tax on exceptional items In the current period, impairment charges arising on non-current assets are not tax deductible but give rise to adeferred tax credit in the period where a claim for capital allowances has been made. The impairment charge oncurrent assets and redundancy costs are treated as tax deductible in the period. The total tax credit on exceptionalitems is £6.1 million. Six-month period ended 30 June 2025 and year ended 31 December 2025 Details of exceptional items included within the prior interim and full year periods are disclosed within Note 5 of theGroup's 2025 interim results and 2025 Annual Report and Accounts, respectively. 6. TAXATION The taxation credit for the interim period represents an estimate based on the expected full year effective tax rate. 7. EARNINGS PER SHARE The basic earnings per share figures are calculated by dividing profit for the year attributable to the parentshareholders by the weighted average number of Ordinary Shares in issue during the year. The diluted earningsper share figures allow for the dilutive effect of the conversion into Ordinary Shares of the weighted averagenumber of options outstanding during the year. Where the average share price for the year is lower than the optionprice the options become anti-dilutive and are excluded from the calculation. The number of shares used for theearnings per share calculation are as follows: Unaudited Unaudited Audited Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 (000s) (000s) (000s) Basic weighted average number of Ordinary Shares 394,873 394,228 394,453 Effect of share incentive awards and options 6,012 2,593 6,112 Diluted weighted average number of Ordinary Shares 400,885 396,821 400,565 The calculation of Adjusted earnings per share is a key measurement used by management that is not defined byIFRS. The Adjusted earnings per share measures should not be viewed in isolation but rather treated assupplementary information. Adjusted earnings per share figures are calculated as the Basic earnings per share adjusted for impact of deferredtaxation rate change, exceptional items, and fair value adjustments (being the amortisation and depreciation onfair value uplifted assets and non-cash interest expenses). Adjustments are made net of the associated taxation onthe adjusted items. A reconciliation of the statutory profit to that used in the adjusted earnings per share1calculations is as follows: Unaudited Unaudited Audited Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 £000 £000 £000 Profit for the period attributable to the parent shareholders (20,290) 5,651 3,074 Add back exceptional costs (Note 5) 25,629 2,836 19,478 Less tax credit on exceptional items (6,097) (709) (7,501) Add back incremental depreciation and amortisation following fair value uplift (Note 4) 5,061 5,388 10,236 Less tax credit on fair value adjustments (1,265) (1,347) (2,559) Less net non-cash interest income (187) 140 (407) Add back tax charge on non-cash interest credit 47 (35) 102 Add back impact of deferred taxation rate change - (50) - Adjusted profit for the period attributable to the parent shareholders 2,898 11,874 22,423 Unaudited Unaudited Audited Half year ended 30/06/2026 Half year ended 30/06/2025 Year ended 31/12/2025 pence pence pence Basic (loss)/earning per share (5.1) 1.4 0.8
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Diluted (loss)/earning per share (5.1) 1.4 0.8 Adjusted basic EPS on profit for the period 0.7 3.0 5.7 Adjusted diluted EPS on profit for the period 0.7 3.0 5.6 8. BORROWINGS AND NET DEBT Unaudited Unaudited Audited 30 June 2026 30 June 2025 31 December 2025 £'000 £'000 £'000 Cash and cash equivalents 9,889 22,588 20,971 Current Private placement (330) (330) (339) Revolving credit facility (60,966) (67,121) (40,813) (61,296) (67,451) (41,152) Non-current Private placement (99,877) (99,643) (99,862) Net debt (151,284) (144,506) (120,043) At current and prior periods, the Group held £100 million of private placement notes from PRICOA Private Capital,with maturities of between 2028 and 2033 and an average total cost of funds of 2.19% (range 2.04% - 2.27%). Theagreement contains debt covenant requirements of leverage (net debt to Adjusted EBITDA) and interest cover(Adjusted EBITDA to net finance charges) of no more than 3 times and at least 4 times, respectively, tested semi-annually on 30 June and 31 December in respect of the preceding 12-month period. Additionally, a £125 million RCF facility is held with a syndicate of four banks for an initial four-year period endingin November 2029 with one-year extension option. Interest is charged at a margin (depending upon the ratio of netdebt to Adjusted EBITDA) of between 160bps and 260bps above SONIA, SOFR or EURIBOR according to thecurrency of the borrowing. The facility also includes an additional £50 million uncommitted accordion facility. Basedon current leverage, the Group will pay interest under the RCF at a margin of 210bps. This facility contains debtcovenant requirements that align with those of the private placement with the same testing frequency. As at 30June 2026 the RCF was drawn down by £62.0 million (31 December 2025: £42.0 million, 30 June 2025: £67.0million). The carrying value of financial liabilities have been assessed as materially in line with their fair values, with theexception of £100 million of private placement notes. The fair value of these borrowings has been assessed as£91.2 million (31 December 2025: £90.1 million, 30 June 2025: £88.4 million). No security is provided over the Group's borrowings. 9. IMPAIRMENT For tangible asset impairment testing purposes, the Group has determined that each factory is a separate CashGenerating Unit (CGU), except for Bedford and Barnwell which are considered as one Southern fencing andbuilding CGU in the Concrete Segment. For impairment testing of intangible assets such as brands, customer relationships and goodwill, CGUs aregrouped at the legal entity level, as this is the lowest level that cash inflows generated from these assets can beidentified. During the period, in light of lower activity levels across the UK construction industry, management identifiedindicators of potential impairment in certain brick factories. Consequently, the recoverable amounts of the relevantCGUs were determined and compared to the carrying values of the assets allocated to those CGUs. After reviewing the forecast market demand based on the latest information available, management completeddetailed impairment testing based on value-in-use ("VIU"), for the CGUs with indicators of potential impairment asat 30 June 2026. Where the carrying value was in excess of the VIU management also assessed the fair value less costs to dispose(FVLCTD). This assessment falls within level 3 of the fair value hierarchy and was made by considering the higherof the transaction price a market participant operating on an arm's length basis may reasonably be expected topay for the operational assets (derived from a risk adjusted discounted future cashflow model) and internalvaluations of the land (based on comparable market transactions). As a result of the detailed impairment testing, an impairment of £ 24.7 million was identified at relevant CGUs, witha recoverable value of £22.8 million from VIU and £2.2 million from FVLCTD. The identified impairment wasproportionally allocated to the building, mineral reserves and plant machinery and equipment assets. The impairment of assets valued at historical cost impacted the Clay segment of the Group in the current period asfollows: Clay £'000 Buildings 7,885 Mineral reserves 3,141 Plant, machinery and equipment 13,637 Total 24,663
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No further impairment charges were recognised in other CGUs and no impairment reversals arose during the year. Management has used the latest forecasts in its estimated future cash flows, covering the period 2026 to 2030,which include assumptions regarding industry demand for the Group's products. These forecasts assume a returnto benchmarked demand levels (defined as demand levels experienced in the majority of years over the past tenyears) over the medium term. Given the recovery may be more gradual than previously anticipated a furtherimpairment was recorded in the period. A downside risk has been identified as an unforeseen structural decline or change of more than 15% inmanagement's forecast for long-term demand for the Group's brick products compared with the benchmarkeddemand levels. Should this occur, the Group may decide to close or mothball certain CGUs, potentially resulting infurther impairment of property, plant and equipment of up to £22.0 million. The final impairment charge woulddepend on management's strategic response to the change in market demand and product mix. A pre-tax weighted average cost of capital ("WACC") of 12%-13% was used within the VIU calculation based on anexternally derived rate and benchmarked against industry peer group companies. An increase of 0.5% of theWACC will potentially lead to a further impairment of £2.5 million in the Clay Segment. Terminal nominal growth rates of 2% were used reflecting long term inflationary expectations and management'spast experience and expectations. Management is of the view that no reasonable movement terminal growth rate outlined would result in a materialimpairment of the Group's non-current assets. The cash flows include ongoing capital expenditure required to maintain the productive capacity of the network butexclude any growth capital initiatives not committed. The immediately quantifiable impacts of climate change and costs expected to be incurred in connection with ourclimate resilience plan, are included within the budget and strategic plan, which have been used to support theimpairment reviews, with no material impact on cash flows. We also expect any changes required due to physicalrisks arising from our assessment of climate change would be covered by business-as-usual site refurbishmentsand phased over multiple years. Therefore, the related cash outflow would not have a material impact in any givenyear. As a consequence, there has been no material impact on the forecast cash flows used for impairmenttesting. Goodwill and other intangibles Management performed an assessment of goodwill and other intangible assets for indicators of impairment as at30 June 2026. No indicators of impairment were identified and, accordingly, no impairment review was requiredbeyond the Group's annual impairment testing process. The annual impairment test for goodwill and otherintangible assets will be undertaken as at 31 December 2026. 10. NOTES TO THE GROUP CASHFLOW STATEMENT Unaudited Unaudited Audited Half year ended Half year ended Year ended 30/06/2026 30/06/2025 31/12/2025 Cash flows from operating activities £'000 £'000 £'000 Profit before taxation (26,587) 7,718 896 Adjustments for: Depreciation 19,031 16,692 35,210 Impairment of property plant and equipment 24,663 - 6,141 Impairment of right-of-use assets - - 195 write off of inventory 948 - 2,408 Amortisation of intangible assets 3,139 3,507 6,322 Finance costs 4,508 4,779 9,138 Gain on disposal of property, plant and equipment (731) (1,566) (178) Research and development expenditure credit (3,246) (1,950) (3,927) Share based payments 331 138 484 Post-employment benefits 414 625 1,247 22,470 29,943 57,936 Increase in inventory (5,849) (4,020) (24,196) (Increase)/decrease in trade and other receivables (12,831) (11,903) 12,309 Increase/(decrease) in trade and other creditors 1,692 4,201 (565) (Decrease)/increase in provisions (3,418) (1,037) 2,551 Cash generated from operations 2,064 17,184 48,035 The Group has the facility to sell its trade receivables under a non-recourse arrangement which is subject to avariable fee, based on SONIA plus a margin of between 130bps and 250bps dependent on the receivables sold.The fee incurred under this arrangement is included within income statement. At the balance sheet date, theamount sold was £8.6 million (31 December 2025: £4.7 million, 30 June 2025: £9.3 million). The Group is also party to a reverse factoring finance arrangement between a third-party UK bank and one of theGroup's key customers. The principal relationship between the customer and its partner bank. The agreementenables the Group to benefit from additional credit against approved invoices and, in practice, this provides afacility of which the Group utilises periodically in order to help manage its short-term funding requirements. Thecredit risk is retained by the customer and the Group pays a finance charge upon utilisation. At 30 June 2026, theamount utilised was £4.1 million (31 December 2025: £nil, 30 June 2025: £nil).
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11. FINANCIAL INSTRUMENTS IFRS 13 'Financial Instruments: Disclosures' requires fair value measurements to be recognised using a fair valuehierarchy that reflects the significance of the inputs used in the measurements, according to the following levels: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, eitherdirectly (that is, as prices) or indirectly (that is, derived from prices). Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservableinputs). At 30 June 2026, 31 December 2025 and 30 June 2025, the Group's fair value measurements were categorisedas Level 2, except for (i) quoted investments within the Group's pension schemes, which were valued as Level 1and (ii) the insured pensioner and deferred pensioner asset, which was categorised as a Level 3 valuation anduses assumptions set out in Note 12 to align its valuation to the related liability. The carrying value of the Group's short-term receivables and payables is a reasonable approximation of their fairvalues. The fair value of all other financial instruments carried within the Group's financial statements is notmaterially different from their carrying amount, with the exception of £100 million of private placement notes. Thefair value of these borrowings has been assessed as £91.2 million (31 December 2025: £90.1 million, 30 June2025: £88.4 million). 12. POST EMPLOYMENT BENEFITS The Group participates in the Ibstock Pension Scheme (the 'Scheme'), a defined benefit pension scheme in theUK. During the six-month period ended 30 June 2026, the opening Scheme surplus of £6.0 million decreased to aclosing surplus of £5.2 million. Analysis of the movements during the six-month period ended 30 June 2026 was asfollows: £'000 Scheme surplus at 1 January 2026 (audited) 5,984 Administration expenses (414) Interest income 157 Remeasurement due to: - Change in financial assumptions 9,362 - Change in demographic assumptions (1,019) - Return on plan assets (8,920) Scheme surplus at 30 June 2026 (unaudited) 5,150 On 20 December 2022, the Scheme completed a full buy-in transaction with a specialist third-party provider, whichrepresented a significant step in the Group's continuing strategy of de-risking its pensions exposure. Thistransaction, together with the partial buy-in transaction in 2020 insured the significant majority of the Group'sdefined benefit liabilities. As a result, the insured asset and the corresponding liabilities of the Scheme areassumed to be broadly matched without exposure to interest rate, inflation risk or longevity risk. However, there isa residual risk that the insurance premium may be increased following a data cleanse to reflect a more accurateliability position. If the surplus Scheme assets are insufficient to meet any additional premium, then the companymay need to pay an additional contribution into the Scheme. The financial assumptions used by the actuary have been derived using a methodology consistent with theapproach used to prepare the accounting disclosures at 31 December 2025. The assumptions have been updatedbased on market conditions at 30 June 2026: Unaudited Unaudited Audited 30 June 2026 30 June 2025 31 December 2025 Per annum Per annum Per annum Discount rate 5.85% 5.55% 5.50% RPI inflation 3.05% 3.05% 2.95% CPI inflation 2.65% 2.60% 2.50% Rate of increase in pensions in payment 3.55% 3.55% 3.50% Mortality assumptions: life expectation at age 65 For male currently aged 65 22.0 years 21.4 years 21.7 years For female currently aged 65 24.5 years 24.2 years 24.3 years For male currently aged 40 23.7 years 23.1 years 23.5 years For female currently aged 40 26.3 years 26.0 years 26.0 years The impact on the defined benefit obligation to changes in the financial and demographic assumptions is shown below: Unaudited Unaudited Audited 30 June 2026 30 June 2025 31 December 2025 £'000 £'000 £'000 Present value of defined benefit obligations (307,037) (313,885) (316,939)
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0.25% increase in discount rate 8,151 8,654 8,669 0.25% decrease in discount rate (8,535) (9,080) (9,090) 0.25% increase in inflation rate (4,867) (6,784) (5,572) 0.25% decrease in inflation rate 4,930 6,533 4,625 0.25% increase in pension growth rate (6,122) (6,784) (6,609) 0.25% decrease in pension growth rate 6,604 6,533 6,366 1 year increase in life expectancy (12,174) (12,266) (12,614) 1 year decrease in life expectancy 12,316 12,345 12,721 On 29 April 2026, the Pension Schemes Act 2026 received Royal Assent. The Act includes provisions intended toaddress the implications of the Virgin Media judgments by allowing affected pension schemes to obtainretrospective written actuarial confirmation that certain historic benefit amendments satisfied the relevant statutorycontracting-out requirements. While the legislative framework is now in place, further legal, actuarial and administrative work is required toimplement the remediation process in practice. The Group continues to assess the implications of the legislation. As at 30 June 2026, the Group is unable toquantify any potential impact on its pension scheme. The Group understands that the Trustees operate governance arrangements designed to support compliance withapplicable laws and regulations. These include regular trustee meetings attended by professional advisers,including the Scheme Actuary, ongoing engagement with legal counsel, annual scheme audits and triennialactuarial valuations. 13. PROVISIONS Unaudited Unaudited Audited 30 June 2026 30 June 2025 31 December 2025 £'000 £'000 £'000 Restoration (i) 4,470 4,886 4,795 Dilapidations (ii) 4,478 4,181 4,646 Restructuring (iii) 739 448 3,357 Other (iv) 429 15 789 10,116 9,530 13,587 Current 3,460 1,822 5,595 Non-current 6,656 7,708 7,992 10,116 9,530 13,587 Restoration (i) Dilapidations (ii) Restructuring (iii) Other (iv) Total £'000 £'000 £'000 £'000 £'000 At 1 January 2026 4,795 4,646 3,357 789 13,587 Utilised - (279) (2,466) (360) (3,105) Charged to income statement 50 50 - - 100 Unwind of discount/change in rate (114) 61 - - (53) Reversed unused (261) - (152) - (413) At 30 June 2026 4,470 4,478 739 429 10,116 (i) The restoration provision comprises obligations governing site remediation and improvement costs to be incurred in compliance with applicable environmental regulations together with constructive obligations stemmingfrom established practice once the sites have been fully utilised. Provisions are based upon management's bestestimate of the ultimate cash outflows. The key estimates associated with calculating the provision relate to the cost per acre to perform the necessary remediation work as at the reporting date together with determining theexpected year of retirement. Climate change is specifically considered at the planning stage of developmentswhen restoration provisions are initially estimated. This includes projection of costs associated with future watermanagement requirements and the form of the ultimate expected restoration activity. Other changes to legislation, including in relation to climate change, are factored into the provisions when legislation becomes enacted.Estimates are reviewed and updated annually based on the total estimated available reserves and the expectedmineral extraction rates. Whilst an element of the total provision will reverse in the medium-term (one to ten years), the majority of the legal and constructive obligations applicable to mineral-bearing land will unwind within a ten-to-twenty-year timeframe. In discounting the related obligations, expected future cash outflows have been determinedwith due regard to extraction status and anticipated remaining life. Discount rates used are based upon UK Government bond rates with similar maturities. (ii) Provisions for dilapidations are recognised on a lease by lease basis and are based on the Group's bestestimate of the likely contractual cash outflows, which are estimated to occur over the lease term. In house expertsare used periodically in the determination of the best estimate of the contractual obligation, with expected cash flows discounted based upon UK Government bond rates with similar maturities. The legal and constructiveobligations will unwind within one year to fifty years. (iii)The restructuring provision comprised obligations arising from the Group's restructuring single coordinatedplans, which involved sites closures and associated redundancy costs. The key estimates associated with the provision relate to redundancy costs per impacted employee. Majority of the cost is expected to be incurred withinone year of the balance sheet date.
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(iv)Other provisions include provisions for legal and warranty claim costs, which are expected to be incurred withinone year of the balance sheet date. 14. OTHER RESERVES Cash flow hedging reserve Merger reserve Own shares held Treasury shares Total other reserves £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2026 (21) (369,119) - (26,714) (395,854) Other comprehensive income 21 - - - 21 Issue of own shares held on exercise of share options - - - 601 601 At 30 June 2026 (unaudited) - (369,119) - (26,113) (395,232) Balance at 1 January 2025 (65) (369,119) - (27,907) (397,091) Other comprehensive expense 59 - - - 59 Issue of own shares held on exercise of share options - - - 1,159 1,159 At 30 June 2025 (unaudited) (6) (369,119) - (26,748) (395,873) Balance at 1 July 2025 (6) (369,119) - (26,748) (395,873) Other comprehensive income (15) - - - (15) Issue of own shares held on exercise of share options - - - 34 34 At 31 December 2025 (audited) (21) (369,119) - (26,714) (395,854) Cash flow hedging reserve The cash flow hedging reserve records movements for effective cash flow hedges measured at fair value. Theaccumulated balance in the cash flow hedging reserve will be reclassified to the cost of the designated hedgeditem in a future period. Merger reserve The merger reserve of £369.1 million arose on the acquisition of Figgs Topco Limited by Ibstock plc in the periodended 31 December 2015 and is the difference between the share capital and share premium of Figgs TopcoLimited and the nominal value of the investment and preference shares in Figgs Topco Limited acquired by theCompany. Own shares held The Group's holding in its own equity instruments is shown as a deduction from shareholders' equity at cost.These shares represented shares held in the Employee Benefit Trust (EBT) to meet the future requirements of theemployee share-based payment plans. Consideration, if any, received for the sale of such shares is alsorecognised in equity with any difference between the proceeds from sale and the original cost being taken to theprofit and loss reserve. No gain or loss is recognised in the income statement on the purchase, sale, issue orcancellation of equity shares. All remaining shares held in EBT were issued to meet share option requirements inthe prior period. Treasury share reserve The Group holds the treasury shares to meet the future requirements of employee share based payment plans.Consideration, if any, received for the sale of such shares is also recognised in equity with any difference betweenthe proceeds from sale and the original cost being taken to the profit and loss reserve. No gain or loss isrecognised in the income statement on the purchase, sale, issue or cancellation of equity shares. At 30 June 2026, the treasury shares are shown as a deduction from shareholders' equity at cost totalling £26.1million (30 June 2025: £26.7 million, 31 December 2025: £26.7 million). 15. RELATED PARTY TRANSACTIONS Balances and transactions between Ibstock Plc (the ultimate Parent) and its subsidiaries, which are relatedparties, are eliminated on consolidation and are not disclosed in this note. There were no further material relatedparty transactions, nor any related party balances in either the 2026 or 2025 financial periods other thanremuneration for the Directors and key management personnel. 16. DIVIDENDS PAID AND PROPOSED A final dividend for 2025 of 1.5 pence per ordinary share (2024: 2.5 pence) was paid on 29 May 2026. TheDirectors have declared an interim dividend of 0.5 pence per ordinary share in respect of 2026 (2025: 1.5 pence),amounting to a dividend cost of £2.0 million (2025: £5.9 million). The interim dividend will be paid on14 September 2026 to all shareholders on the register at close of business on 21 August 2026. These condensed consolidated financial statements do not reflect the 2026 interim dividend payable. 17. POST BALANCE SHEET EVENTS
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Except for the proposed interim ordinary dividend (see Note 16), no further subsequent events requiring eitherdisclosure or adjustment to these financial statements have arisen since the balance sheet date. INDEPENDENT REVIEW REPORT TO IBSTOCK PLC Conclusion We have been engaged by the company to review the condensed set of financial statements in the half-yearlyfinancial report for the six months ended 30 June 2026 which comprises the condensed consolidated incomestatement, the condensed consolidated statement of comprehensive income, the condensed consolidated balancesheet, the condensed consolidated statement of changes in equity, the condensed consolidated cash flowstatement and related notes 1 to 17. Based on our review, nothing has come to our attention that causes us to believe that the condensed set offinancial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in allmaterial respects, in accordance with United Kingdom adopted International Accounting Standard 34 and theDisclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. Basis for Conclusion We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Reviewof Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the FinancialReporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial informationconsists of making inquiries, primarily of persons responsible for financial and accounting matters, and applyinganalytical and other review procedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK) and consequently does not enable us to obtainassurance that we would become aware of all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion. As disclosed in note 2, the annual financial statements of Ibstock Plc (the "Group") are prepared in accordancewith United Kingdom adopted international accounting standards. The condensed set of financial statementsincluded in this half-yearly financial report has been prepared in accordance with United Kingdom adoptedInternational Accounting Standard 34, "Interim Financial Reporting". Conclusion Relating to Going Concern Based on our review procedures, which are less extensive than those performed in an audit as described in theBasis for Conclusion section of this report, nothing has come to our attention to suggest that the directors haveinappropriately adopted the going concern basis of accounting or that the directors have identified materialuncertainties relating to going concern that are not appropriately disclosed. This Conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however futureevents or conditions may cause the entity to cease to continue as a going concern. Responsibilities of the directors The directors are responsible for preparing the half-yearly financial report in accordance with the DisclosureGuidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability tocontinue as a going concern, disclosing as applicable, matters related to going concern and using the goingconcern basis of accounting unless the directors either intend to liquidate the company or to cease operations, orhave no realistic alternative but to do so. Auditor's Responsibilities for the review of the financial information In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on thecondensed set of financial statements in the half-yearly financial report. Our Conclusion, including our ConclusionRelating to Going Concern, are based on procedures that are less extensive than audit procedures, as describedin the Basis for Conclusion paragraph of this report. Use of our report This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken sothat we might state to the company those matters we are required to state to it in an independent review reportand for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility toanyone other than the company, for our review work, for this report, or for the conclusions we have formed. Deloitte LLP Statutory AuditorBirmingham, United Kingdom4 August 2026
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[1] Alternative performance measures are described in Note 3 to the interim financial statements [2] On a like-for-like basis, Group revenue for the six months ended 30 June 2025 was £182 million, compared with statutory revenue of £193 million. This excludes £10 million attributable to the Forticrete Roofing business, which was disposed of, and £1 million attributable to Ibstock Telling, where operations ceased prior to the current reporting period. [3] On a like-for-like basis, Concrete revenue for the six months ended 30 June 2025 was £50 million, which represents statutory revenue of £60m, excluding £10 million attributable to the Forticrete Roofing business, which was disposed of in December 2025 [4] Banking covenant basis [5] Company compiled analysts' range for 2026 adjusted EBITDA is £59m to £68m [6] The Atlas 'Pathfinder' range is externally certified as CarbonNeutral® by Climate Impact Partners under The CarbonNeutral Protocol, a recognised framework for measuring, reducing and offsetting product lifecycle carbon emissions This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END