Ibstock Plc Annual Report and Accounts 2025

Navigating today.

Shaping tomorrow.

200

Contents Welcome

Strategic Report

1 2025 highlights

2 Our bicentenary

4 Our story

6 At a glance

7 Our products and solutions

8 Chair’s Statement

10 Investment case

11 Chief Executive Officer’s Statement

15 Market and industry overview

19 Our business model

20 Our strategy

24 Key performance indicators

26 Operating Review

29 Group Financial Review

34 Section 172(1) Statement

35 Stakeholder engagement

39 Sustainability

47 Non-Financial and Sustainability

InformationStatement

48 Principal risks and uncertainties

53 Viability and Going Concern Statements

Governance Report

55 Chair’s Introduction to the GovernanceReport

56 Governance at a glance

58 Board of Directors

60 Governance framework

62 Corporate Governance Statement

63 Board leadership and company purpose

66 Board activities

70 Division of responsibilities

71 Composition, succession and evaluation

74 Audit, risk and internal control

76 Nomination Committee Report

81 Sustainability Committee Report

83 Audit Committee Report

91 Directors’ Remuneration Report

96 2025 Directors’ Remuneration Policy

102 Annual Report on Remuneration

111 Directors’ Report

114 Directors’ Responsibility Statement

Financial Statements

115 Independent Auditor’s Report

124 Consolidated income statement

125 Consolidated statement of

comprehensive income

126 Consolidated balance sheet

127 Consolidated statement of

changes in equity

128 Consolidated cash flow statement

128 Reconciliation of changes in cash and cash

equivalents to movement in net debt

129 Notes to the consolidated

financial statements

165 Company balance sheet

166 Company statement of changes in equity

167 Notes to the Company financial statements

171 Group five-year summary

Additional Information

174 Sustainability and Climate Change Reporting

174 Sustainability Reporting Data

176 Sustainability Performance Data

178 Task Force on Climate-related

FinancialDisclosures

192 Shareholder information

2025 was a year that tested both our resilience and

determination. Whilst we celebrated the 200th anniversary

ofour site in Leicestershire, like many businesses we faced

significant uncertainty and market challenges. Despite this, we

continued to move forward – navigating today while shaping

tomorrow, both forIbstock and a new era of building in the UK.

Our ability to achieve this comes from a strength built in:

combining heritage with innovation, operational resilience,

anda clear strategy for sustainable growth.

Ibstock’s robust foundations, alongside a willingness to take

decisive actions when necessary, mean that we are well

positioned for the market recovery and the creation of

long‑term value. I am proud to present our 2025 Annual

Reportand Accounts in such a special year for the business

andall our stakeholders as we look to the future.

We remain, ‘at the heart of building’.

Read more about our

bicentenary by scanning

the QR code below

www.ibstock.co.uk/

about-us

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Late 2000s

Acquisitions of Supreme Concrete Limited (2007)

and Anderton Concrete Limited (2008) to broaden

our concrete product offerings.

Strength built in

Further expansion with new product

offerings and entry into rail and

infrastructure markets.

Our bicentenary continued

2015 – 2018

Ibstock Plc listed on the

London Stock Exchange. Sale of Glen-Gery.

2023 – 2024

Acquisition of Coltman.

Nostell redevelopment completes Phase 1 of its

automated brick slips cutting technology, and Atlas

starts to increase production of our lowest carbon bricks.

Today

A leading UK manufacturer of building products and solutions

– all backed by design and technical expertise – with major

opportunities to further shape a new era of building.

2022

Ibstock Futures opens an innovation hub in the

Midlands, acquires Generix Facades Limited and other

Glass Reinforced Concrete technologies.

2019 – 2021

Launch of I-Studio, acquisition of Longley and major

announcements of future investments at our Atlas,

Aldridge and Nostell sites.

Strength built in

Added value through access to the UK capital

markets and increased public visibility.

Strength built in

Strengthening market position

andinvestments.

Strength built in

Creating long-term value by driving

growth,efficiency and sustainability

whileenhancing competitiveness

andresilience.

Strength built in

Value add across economic, strategic

progressand reputational dimensions.

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Our story

Strength

built in

...built to last.

Resilience is engineered into how we operate. We are driving

amore efficient, safer, lower-cost and more sustainable

manufacturing network, underpinned by disciplined cost

controland a deep level of knowledge and technical expertise.

This enables us to deliver reliably, even in the most challenging

markets. We flex capacity, manage costs and sustain margins

with focus and discipline. Our scale and operational strength,

honed over two centuries of leadership in UK manufacturing,

giveus the confidence to keep building for the long term.

Over £325m

Strategic investment over the last eight years driving

higher-quality, lower-cost, more efficient and even more

sustainable products for UK construction markets.

Read more in our Group Financial

Review on pages 29 to 33

3.0p dividend

Targeted cover of approximately 2x underlying

earnings through the cycle.

...stronger together.

The Ibstock team is building a more connected, efficient and

customer-focused business. By uniting our brands, people and

data, we are working towards sharper execution, faster decisions

and reinforcing our category leadership – creating greater

long-term value for our customers and shareholders. Our

integrated model is strengthening competitiveness and laying

the foundations for sustainable growth.

Unified Ibstock

Commercial model to enhance customer experience

and drive cross-selling opportunities.

Read more in our Chief Executive Officer’s

Statement on pages 11 to 14

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At a glance

Building Britain for

over200years

Ibstock exists to build a better

world by being at the heart

of building.

We are a leading supplier of clay, concrete

and diversified building products and solutions

to the UK construction industry.

As the UK’s largest brick manufacturer, alongside

offering a wider range of leading building

products, we combine scale, technical expertise

and innovation to deliver long-term value.

Clay products

We are the UK’s largest brick manufacturer,

producing millions of clay bricks across

15sitessupported by 15 active quarries.

Ourportfolio includes the highest quality and

high performing facing bricks, masonry products

and prefabricated components through our four

Kevington sites – delivering design flexibility and

structural integrity for residential, commercial

and infrastructure projects.

Concrete products

We are a leading producer of concrete walling,

flooring and fencing products, complemented

by lintels, rail and infrastructure solutions.

Operating from 11 UK sites, we provide

durable,versatile products that support

housing, landscaping and major infrastructure

projects nationwide.

Diversified products

andsolutions

Driving innovation and diversification,

IbstockFutures focuses on even more

lower-carbon solutions and Modern Methods

ofConstruction (‘MMC’).

Predominantly based at our Nostell

redevelopment, we create next-generation

building systems to increase capacity and deliver

new solutions for a new era of construction.

Read more about our business segments

on pages 11 to 14

Our business in numbers

112

260

12%

88%

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Our products and solutions

Strength in

our offering

Bricks & Masonry

@ Facing bricks

@ Engineering bricks

@ Brick slips

@ Special shaped bricks

@ Walling stone

@ Architectural masonry

@ Prefabricated components

@ Eco-habitat range

Façade Systems

@ FastWall

@ Brick slips

@ IBricks

@ Façade systems – brick,

stone or GRC (Generix)

@ Mechanical brick slip systems

@ Lintels and soffits (Nexus)

@ Other bespoke solutions

Design &

TechnicalServices

@ Expert design and

technicalservice

@ Training and CPD sessions

@ End-to-end project support

Read more about our products and services

byscanning the QR code below

www.ibstock.co.uk/products-and-services

Ibstock concentrates on seven core

product categories, each backed by

design and technical services capabilities.

From bricks and façade systems to

flooring, landscaping, retaining walls and

infrastructure, we hold leading positions

across the UK.

Design and technical services

We are committed to providing the best possible design and

technical support to our customers. From expert advice to a

sector-leading training and continuing professional development

provision, our range of design and technical services is especially

configured to give architects and specifiers the access to the

support they need, at every stage on their project journey –

fromconcept to build.

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Staircases

& Lift Shafts

@ Precast staircases

@ Lift shafts

Fencing & Landscapes

@ Fence posts

@ Copings and capping

@ Gravel boards

@ Bollards

@ Balustrades

@ Path edging

@ Gully surrounds

@ Urban landscaping

@ Eco-habitat range

Retaining Walls

@ Stepoc

@ Slopeloc

@ Keystone

Flooring & Lintels

@ Beam and block flooring

@ Insulated flooring

@ Hollowcore screed rails

@ Padstones and lintels

Rail & Infrastructure

@ Rail troughs

@ Platform copers

@ Cable theft protection

@ Signal bases

@ Utility ducts

@ Inspection chambers

Chair’s Statement

Building for

the future

possessing a progressive and sustainable vision

for the future. Everyone I have met understands

this history and is proud to work for such a

long-standing and established name that has

played its part in Britain’s industrial history.

Ilook forward to providing a contribution to

such a valuable and interesting story.

Financial results

The business has performed with resilience

during 2025 and has made some difficult

decisions, including two updates to the stock

market in June and October, as the market

became progressively tougher during the year.

Revenue for the period was up by 2% to

£372million (2024: £366 million) led by strong

new-build growth in H1. Ibstock Clay revenues

were up 5% to £260 million, whilst Ibstock

Concrete delivered £112 million, 5% lower than

the prior year. Slow repair, maintenance and

improvement (‘RMI’) demand resulted in

average pricing being marginally down.

Adjusted EBITDA was down 10% to £71 million

(2024: £79 million), reflecting cost inflation,

adverse product mix and increased costs as

capacity was reinstated. Statutory profit before

tax of £1million (2024: £21 million), reflected

lower trading performance and an exceptional

chargeof £19 million (2024: £12 million).

Thelevel of net debt reduced to £120 million

(2024: £122million), including c.£30 million

ofproceeds from non-core divestments.

Introduction

Having joined Ibstock during 2025, this is my

first statement as Chair, and I am particularly

pleased to be doing so as the Company

celebrates its 200th anniversary. My colleagues

on the Board have been extremely welcoming

and I look forward to working with them and

Ibstock’s senior management teams as we

head into 2026 and beyond. I would like to

express my sincere thanks to Jonathan Nicholls,

my predecessor, for his support during the

handover of responsibilities and my induction

into all things Ibstock. Jonathan played a key

role in guiding the business from its listing on

the London Stock Exchange in 2015 and

provided sound and consistent leadership

during what has proved tobe 10 years of

particularly challenging circumstances, both

inour sector and for the global economy.

IknowI speak for all of my colleagues when

Iwish him every success for the future.

First impressions

My first few months have been spent getting

toknow the business, its operations and people

and its culture. I have tried to get out and visit

as many of our sites as possible, to get an

understanding of the Company’s products and

manufacturing processes, as well as meeting

with a range of key stakeholders. It goes

without saying that Ibstock represents a

business with a rich and colourful legacy whilst

“ Ibstock is a business with a rich and

colourful legacy, whilst possessing a

progressive and sustainable vision for

the future.”

Richard Akers

Chair

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Chair’s Statement continued

Strategy

We undertook a detailed review of our existing

corporate strategy at a session in November.

This gave us an opportunity to test and

challenge the assumptions, objectives and

plans of Ibstock’s senior teams as we faced

intocontinued market uncertainty. I am clear

that this strategy remains appropriate for the

business, and that those actions that came

outof the meeting will support our strategic

progress in the coming years.

During the year, our Atlas Pathfinder factory

continued to progress its commissioning process

and full production capability is expected in

2026, delivering lower cost and more efficient

capacity. The Nostell investment is now

largelycomplete, with good progress on the

construction of the UK’s most advanced ceramic

façade facility. We are also well advanced in

renewing options for our calcined clay

opportunity. To increase the strength of our

balance sheet, we took the decision in Q4 to sell

surplus land assets and our Forticrete roofing

sites for a total consideration of c.£30 million.

This will have no meaningful impact on the

Group’s future financial performance and we

continue to look at optionality around our land

assets to further strengthen the balance sheet.

Dividend

The Board recommends a final dividend of

1.5pence per share (2024: 2.5 pence), resulting

in a full-year dividend of 3.0 pence per share

(2024: 4.0 pence).

Our employees

We are committed to driving best in class

standards for health, safety and wellbeing for

allcolleagues and support Ibstock’s culture

withenthusiasm. Having been through another

tough year, I would like thank all those involved

for their incredible contributions to Ibstock.

Board changes

The period under review has seen significant

changes at Board level as Jonathan Nicholls

leftus in May and Chris McLeish, our former

CFO, having accepted a new role, moved on

inOctober. On behalf of the Board, I can only

reiterate our best wishes for both Jonathan and

Chris in the future. Having started the process

tofind a replacement for Chris McLeish, a key

priority for the Nomination Committee is to

finalise that search and be in a position to

announce a successor soon.

We will soon also lose Justin Read, who has

been Chair of the Audit Committee since

2017as he steps down at the AGM in May, in

accordance with the requirements of the UK

Corporate Governance Code 2024 (the ‘Code’).

Justin has been outstanding as Chair of this

important Committee and his presence and

counsel will be sorely missed. The process to

finda replacement for Justin has completed

and I can confirm the appointment of Martin

Payne with effect from 30 March 2026. Further

details of this recruitment process can be found

in the Nomination Committee Report on

pages76 to 80.

Diversity

The Board recognises the benefits that a diverse

Board and workforce can bring to a company,

and we are committed to ensuring that Ibstock

is a diverse, fair and inclusive place to work.

The Board is cognisant of the FTSE Women

Leaders Review recommendation that FTSE 350

companies should have at least one woman in

the role of Chair, Senior Independent Director,

Chief Executive Officer (‘CEO’) or Chief

Financial Officer (‘CFO’). We remain committed

to addressing the balance within these roles as

succession plans are developed, but will always

make appointments that are based upon an

individual’s merit, suitability and ability to carry

out a role successfully.

Governance

The Board is more committed than ever to

driving long-term sustainable performance for

the benefit of all our stakeholders. This includes

the application of high standards of corporate

governance and making sure that these

principles are embedded into our culture.

Withinthis report we set out in detail how we,

asa Board, have made decisions, engaged

withour stakeholders and complied with the

principles of the Code.

Sustainability

We have made good progress on our sector-

leading sustainability and social impact agenda,

sharpening our focus on carbon, product

innovation and sector skills. During the year,

wewere also delighted to report progress on

ouroverall decarbonisation journey, which now

positions us as halfway to achieving our 2030

carbon reduction goal of 40%. In addition to

carbon, we made progress in a number of other

areas ofsustainability such as waste and water

reduction and biodiversity.

Looking towards the future

With markets remaining subdued, we are working

hard to maintain our volumes and margins.

Some success in generating growth impetus

inthe housing market would be materially

beneficial to our efforts, both to generate

returns and to maintain our modernised and

enhanced production capacity.

Reflecting our current view of a subdued market,

we will be actively managing production

volumes and inventory, which will create a

margin headwind in 2026 although these

actions will improve working capital efficiency

and strengthen the balance sheet. Improved

cash generation and reduction in leverage

provide optionality for future growth and

capitalreturns.

The Board remains confident in the medium-

term prospects for the business, although the

pace and timing of the recovery remain uncertain.

Richard Akers

Chair

4 March 2026

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Investment case

Why invest

in Ibstock?

Our business has strong

fundamental qualities

@ Broad exposure to markets with attractive

long-term growth potential.

@ Established market leadership position in our

core brick market and leadership positions in

attractive segments of the concrete building

products market.

@ Diversified market exposure and a product

range unrivalled in its breadth and depth.

@ Well-invested asset base, extensive

consentedclay reserves and unrivalled UK

operational network, creating a strong,

competitive position.

@ A trusted partner to a high-quality,

long-standing customer base.

We are focused on growth

@ Compelling growth strategy combining

development of our core businesses

withdiversified growth addressing new

opportunities in emerging, fast-growth

areasof the UK construction market.

@ Strong pipeline of growth projects in our

corebrick and concrete businesses.

@ Ibstock Futures – an exciting opportunity

todiversify and capture growth from

faster-growing segments of construction

markets. These markets are centred on the

use of even more sustainable building

materials and MMC.

@ Strong organic and inorganic pipeline

underpinning significant medium-term

growth potential.

We are creating

shareholdervalue

@ Significant earnings growth potential over

themedium term.

@ Structurally strong operating margins and

cash generation.

@ Robust balance sheet and disciplined capital

allocation framework provide the platform

toboth invest further for growth and deliver

incremental shareholder returns. We have

invested organically more than £325 million

over eight years.

@ Payment of ordinary dividends with a

targeted cover of approx 2x underlying

earnings through the cycle.

@ Excess capital returned to shareholders

asappropriate.

We have built sustainability

into our strategy, our

products and our processes

@ A resilient and responsible business run

forthe long term.

@ Leading our industry on the adoption of

sustainable business practices, supporting

ourcustomers’ sustainability journeys,

aswellas meeting our own carbon

reductiontargets.

@ Seizing the growth opportunity

throughtheaccelerating transition

tosustainable construction.

Read more about our progress against

our sustainability targets

on pages 39 to 46

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Chief Executive Officer’s Statement

Strategic progress

with strength built in

Given the evolving demand dynamics in H2,

weright-sized capacity and reduced headcount,

focusing on driving efficiencies through both

the factory network and our support functions,

which will deliver c.£5 million of annualised

costsavings.

With disciplined capital allocation and a focus

on priority markets, we generated c.£30 million

of proceeds through the disposal of non-core

assets, including the sale of our Forticrete

roofing sites and the sale of surplus land.

The Group remains committed to maximising

returns through innovation and capacity

optimisation. Our Atlas investment continues

tomake progress, with commissioning

underway across its full brick product range.

Wewere pleased to showcase this facility to

investors inlate 2025, demonstrating first hand

how weare combining cutting-edge technology,

efficiency and innovation to set new standards

for the industry.

At Nostell, the second phase of the investment

programme is also progressing well. Once

complete, it will be the UK’s most advanced

ceramic façade facility, producing our new

IBrickrange, which will also support innovative

solutions such as FastWall. These products are

already generating significant interest in the

market and provide a new avenue of growth

forthe Group.

Market dynamics in 2025

changed as the year

progressed. After a strong start

to the year, conditions became

progressively morechallenging.

In the first and second quarter, the market

wasup 17% and 10% respectively. In the

thirdquarter growth decelerated to 4% before

an actual decline of 2% in the final quarter

compared to the prior period. Overallbrick

volumes were 1.83 billion (2024: 1.72billion),

c.27% below the recent 2022 peak, although

6% up on prior year. Imports were 352million

(2024: 316 million) representing 19%(2024: 18%)

of the market. Our market leadership and

differentiated offering enabled share gains in

clay brick with 8% volume growth.

Average selling prices in brick were marginally

down on 2024, reflecting the tough environment

and a shift in mix. We saw more growth in

wire-cut bricks which serves new-build residential

whilst demand for our soft mud bricks exposed

to RMI and specification markets was

moremuted.

As we entered 2025, with market momentum

continuing from 2024, we took steps to

re-activate network capacity to meet the

recovering demand. However, we incurred

higher than expected incremental costs to

reactivate this capacity and ultimately the

initialmomentum was not sustained and our

capacity moved ahead of demand.

“ The Group remains committed to

maximising returns through innovation

and capacity optimisation.”

Joe Hudson

Chief Executive Officer

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Chief Executive Officer’s Statement continued

With major capex projects nearing completion,

and a high cash drop through on incremental

volumes, we are well positioned to capitalise on

a market recovery, although the timing of a

recovery remains uncertain. Strategic options,

including further land disposals and the

commercialisation of our unique Calcined

Clayreserves, will further strengthen the

balance sheet providing significant optionality

in respect of future growth and capital returns.

Financial performance

Revenue for the period was up by 2% to

£372million (2024: £366 million). We saw a

strong H1, with brick volume growth of 15%;

which contrasted with flat growth in H2 as

markets became tougher. A marginal full-year

price decline reflected the challenging trading

environment as well as a mix impact with

stronger growth in the new-build residential

market and a relatively weak RMI sector.

Group Adjusted EBITDA* of £71 million

(2024:£79 million) was down 10% and in line

with therevised guidance given in October

2025. Adjusted EBITDA* margin declined to

19.1% (2024:21.7%). This reflected both

inflationary pressure, increased costs related to

ramping upclay capacity, and adverse product

mix including lower volumes in higher-margin

Concrete categories.

Statutory profit before tax of £1 million

(2024:£21 million), reflected lower trading

performance and an exceptional* charge of

£19million (2024: £12 million).

The Group’s net debt* at the year end

improvedto £120 million (2024: £122 million).

Divisional review

Clay

The Clay division delivered a resilient volume

performance against a tough market backdrop.

Strong volume growth in H1, and a broadly flat

H2, resulted in revenues up 5% to £260 million

(2024: £249 million). We saw more growth in

wire-cut bricks, which are more favoured in

new-build housing markets, whilst demand

forour soft-mud bricks, which are more

exposedto RMI and specification markets

andconcentrated in the South-East/London

regions, was more muted. Within this, Ibstock

Futures delivered sales for the full year of

£9million (2024: £10 million).

A more competitive environment constrained

pricing which, together with a negative shift

insales mix, led to average prices slightly below

the comparative period.

Adjusted EBITDA* of £68 million

(2024: £72million) was down by 6% due

tocost inflation, adverse product mix and

incremental fixed costs, which tapered as the

year progressed. This negative impact was

partially offset by firmer pricing towards the

end of the year. Performance benefited from

anincrease in inventory with the absorption of

fixed cost as production levels exceeded sales

volumes in the year as demand weakened. The

Clay division includes the financial performance

of the Ibstock Futures business, where financial

performance moved forward with overall net

costs for the business reducing to £2 million

from £7 million in 2024. Adjusted EBITDA

margins for the period for the Clay division

weredown by 290 bps to 26.2% (2024: 29.1%).

Concrete

Revenues within the Concrete division reduced

by 5% to £112 million (2024: £117 million).

Residential new-build sales volumes were

tempered by lower growth in the RMI market

and falling sales volumes as UKrail infrastructure

markets continued to be impacted by control

period spending constraints.

Adjusted EBITDA* fell 37% to £9 million

(2024:£15 million) with an Adjusted EBITDA

margin of 8.3% (2024: 12.5%), reflecting adverse

product mix with lower volumes in higher margin

rail infrastructure and RMI markets.

In Q4 2025, we completed the disposal of

landassets and our Forticrete roofing sites,

releasing approximately £30 million of capital

from non-core activities. The Roofing operation

was relatively small, and its exit allows greater

focus on core clay and concrete activities

without materially impacting the Group’s

futureperformance.

Our Nostell Horizon Factory

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12Ibstock Plc | Annual Report and Accounts 2025

Chief Executive Officer’s Statement continued

Commissioning and ramp-up progressed well

through the year, and we are now delivering

sixof the 13 planned products, with the

remainder – including our carbon-neutral range

– coming online through 2026. The range has

been well received by customers, combining the

aesthetics of soft-mud bricks with the efficiency

and consistency of wire-cut production,

meetingdesign-led demand while improving

operational performance.

We expect an increasing appetite for

theseproducts and a corresponding uplift

inprofitability driven by Atlas’ advanced,

efficient manufacturing model.

The factory has been shortlisted for the

Government’s second round of hydrogen

funding known as HAR2. This will reduce costs,

increase efficiency and improve sustainability

even further. The new factory has already

reduced the level of carbon emissions by c.50%

compared to the original Atlas Factory, and with

the construction of a green hydrogen facility

adjacent to the factory there is the potential to

reduce the carbon footprint by c.75% compared

to the original Atlas Factory.

Nostell

The first phase of the Nostell project, the

automated brick slips cutting facility, is fully

commissioned. The second phase, a larger-scale

innovative ceramics façades line, is progressing

well. This new line will bring unrivalled flexibility

and choice to the façades market when fully

commissioned in 2026. We have received an

encouraging customer response to early

product and design innovation and have seen

aparticularly strong market response to the

launch of our FastWall product. We continue

toview Nostell as enabling a highly attractive

source of diversified growth for Ibstock in the

years ahead.

Sustain, Innovate, Grow

Our operational strategy is anchored around

thepillars of Sustain, Innovate and Grow.

Tosharpen our focus on execution on these

strategic goals we have defined five focus areas

under the banner of a unifying ‘North Star’.

Although the pillars are distinct, in reality

manyof the initiatives highlighted below are

applicable across all three.

Sustain: Embedding operational

andservice excellence

A Safe Reliable Production System

Health and safety remains our number one

priority as a business.

Whilst in 2025 we made meaningful progress

on strengthening safety leadership across our

sites, along with greater risk controls, we

recorded a Total Injury Frequency Rate (‘TIFR’)

of 36.6 (2024: 31.4). This was driven primarily

bycommissioning and transition activities of

our large projects – with multiple learnings

taken from the teams.

We also advanced the Safe Reliable Production

System programme. This multi-year initiative

will drive an updated, standardised operating

model for all Ibstock factories to improve

performance and reliability and embed safe

practices even further.

Customer focus

We are developing a stronger data-driven

approach to demand insights, including the

in-year development of a new Business

Intelligence platform and and pilot of an

AI-enabled forecasting model. We have also

taken a more customer segmented approach

tocustomers to optimise service levels.

Our in-year customer survey showed our overall

relationship rating improving year on year from

7.65 to 7.93. The survey has now expanded

beyond our brick category into a broader range

of product lines, enhancing the depth and

strategic value of customer feedback across

thebusiness.

Innovate: Providing new solutions

tothe UK’s critical building needs

Product development

Existing product development, coupled with

new product development (‘NPD’), focuses

oncontinuously improving our existing range,

aswell as providing new, innovative and even

more sustainable solutions to the UK

construction industry.

In the Clay division we introduced six new

products targeting the specification market.

Along with the new aesthetically focused range

from Atlas, we are building on our proposition of

focusing on higher-end customer requirements.

NPDs from Nostell, such as IBricks and FastWall,

have been well received as we anticipate the

evolving needs of our customers. In Concrete,

we have continued to take further steps to

increase the use of recycled content and lower

carbon content. Overall, our ratio of new and

sustainable products as a percentage of

revenue is consistently improving, and in

2025increased to 25% (2024: 22%), reflecting

positive customer adoption and effective

execution of our development pipeline.

Atlas

Atlas is our Pathfinder factory, pioneering

cutting-edge technology and our most

advanced wire-cut processes to deliver a step

change in efficiency. It sets the model for a

high-performance, lower-cost and more

sustainable factory of the future.

Grow: Diversification and Group

culture drives growth

Diversification into new markets and segments

continues to be a key strategic priority.

Calcined Clay

Cement and concrete currently contribute

around 8% of total global CO

emissions.

Calcined Clay presents the potential to reduce

carbon emissions by around 40% versus

ordinary Portland cement, and the footprint

ofour Calcined Clay reserves will enable the

firstindustrial-scale production in the UK.

Following an extensive technical assessment,

we have reached the final phase of the process

to realise the potential of our Calcined Clay

reserves, with preferred partner selection and

commercial agreement well advanced.

Employees at the Pledge Safety Awards

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13Ibstock Plc | Annual Report and Accounts 2025

Chief Executive Officer’s Statement continued

Medium-term outlook – building

foundations for growth and returns

Although timing of the market recovery remains

uncertain, we remain confident that long-term

market fundamentals remain intact and with a

well-invested, lower-cost, more efficient and

sustainable manufacturing network, we expect

to benefit from meaningful operational

leverage across the business. Ourclay factory

network has the ability to reactivate a further

20% of network capacity with minimal

additional investment.

Grow: Diversification and Group

culture drives growth continued

Sector leading sustainability

andsocialimpact

We have made good progress on our sector-

leading sustainability and social impact

agenda, sharpening our focus on carbon,

product innovation and sector skills. During the

year, we were also delighted to report progress

on our overall decarbonisation journey, which

now positions us as halfway to achieving our

2030 carbon reduction goal of 40%. In addition

to carbon, we made progress in several other

areas of sustainability such as waste and water

reduction and biodiversity.

People and culture

We aim to set the benchmark within our

industry for developing people and culture

withCare, Courage, Trust and Teamwork

beingour fundamental values.

In September 2025, we undertook the Best

Companies employee opinion survey and

maintained ‘Ones to Watch’ status, with

animpressive 83% employee participation

rate.We did see a small decline in the overall

engagement index; however, given market

conditions and uncertainty, like many

otherbusinesses, this was to be expected.

Iam,however, pleased that we did see

positivefeedback on wellbeing and mental

health support.

We also remain proud of our Early Careers

initiative and Talent Management programmes

– providing an all-employee development

offering as well as ongoing upskilling

opportunities. This was reflected in the

retention of Gold accreditation from the 5%

Club, and our Earn and Learn position was 7.2%

(2024: 7.4%), still on track for achieving our

2030 target of 10%. We remain committed to

building a diverse and inclusive organisation

that reflects the communities we serve. Our

focus on gender equity is unchanged, with

senior female representation stable at 32%

in2025 (2024: 34%) despite a number of

organisational changes. We made strong

progress in ethnic diversity, with senior leader

representation rising to 15% (2024: 7%),

aheadof our 2030 target. Through external

partnerships we continue to support industry-

wide efforts to advance inclusion and widen

access to talent.

Apprentice training at Make UK

With our major organic capital expenditure

programmes now largely complete, we expect

an acceleration in free cash flow generation

coupled with strategic actions to further

strengthen the balance sheet and provide

significant optionality on future growth and

shareholder returns.

Outlook for 2026

After a weather-impacted start to 2026

residential construction and RMI markets

areexpected to remain challenging in H1.

Weexpect modest year on year volume growth

inH2 2026, with recovery in new-build housing

and the RMI markets dependent on demand

activity gaining momentum in the spring. Price

increases implemented in February 2026 should

enable us to offset anticipated cost inflation

forthe year. Current international events in the

Middle East are expected to introduce new

uncertainty; the Group is well covered with

around 80% of its energy needs secured for the

2026 financial year.

Reflecting our current view of the market, we

will be actively managing production volumes

and inventory creating a margin headwind for

2026, although these actions will improve

working capital efficiency and strengthen

thebalance sheet.

Joe Hudson

Chief Executive Officer

4 March 2026

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14Ibstock Plc | Annual Report and Accounts 2025

Market and industry overviewMarket and industry overview

Strength from

futuregrowth

Ibstock is a leading UK

manufacturer of building

products and solutions,

supported by expert design

and technical services. Our

diverse portfolio serves both

new‑build housing and the

RMI sector.

Wealso hold strong positions in rail and

infrastructure and are driving growth in

emerging construction segments, supported by

demand formore sustainable, high-performing

products, innovative solutions and MMC.

The three largest manufacturers account for

most UK brick production, and we have the

largest clay brick production capability,

maintaining our market-leading position.

Weare well positioned in markets with strong

fundamental drivers, and our long-standing

expertise ensures that we focus on the most

significant growth opportunities.

Overall UK construction market

The UK economy continued to face headwinds

through 2025, with growth weaker than

expected. Consensus GDP forecasts were

revised down from c.2% to around 1.0% – 1.4%

for 2025 and close to 1.0% in 2026, reflecting

subdued private-sector demand, elevated costs,

lower confidence and limited support for

first-time buyers.

The Construction Products Association (‘CPA’)

Winter 2025 – 2026 forecast shows total

construction output rising by 1.7% in 2026

and3.3% in 2027, a downward revision from

late-2024 projections. We expect modest year

on year volume growth in 2026 from the

secondhalf of the year.

Government policy changes are beginning to

support the sector through targeted funding

and regulation, though reforms are modest and

taking time to feed through. Key measures

include streamlining planning for housing and

major infrastructure, and significant investment

in school, Ministry of Defence (‘MoD’) and

healthcare estates – including Reinforced

Autoclaved Aerated Concrete (‘RAAC’)

remediation – alongside ongoing public sector

maintenance. These interventions aim to

provide a more stable foundation across public

sector and regulated construction pipelines.

Skills development remains a priority, with a

£625 million Government programme

introduced to address labour shortages and

support delivery across housing, infrastructure

and public sector projects.

Despite these positive developments, regulatory

complexity, market uncertainty and planning

friction continue to constrain momentum in the

near term.

The Building Safety Act 2022 regime is also

influencing higher-risk projects, with Gateway

approvals and compliance requirements

addingscrutiny and contributing to delays.

While supply-chain pressures have eased in

places, cost pressures and planning friction

remain key constraints.

Overall, whilst we navigate the near term, our

medium- and long-term markets remain

attractive, giving us the confidence and

resilience to keep building for the long term.

Private housing output to rise by

1.5%

in 2026 and 4.0% in 2027

Private housing RMI to fall by

1.0%

in 2026 and rise by 3.0% in 2027

Infrastructure output to rise by

3.9%

in 2026 and 4.4% in 2027

Industrial output to rise by

0.9%

in 2026 and 1.7% in 2027

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15Ibstock Plc | Annual Report and Accounts 2025

Market and industry overview continued

New housing

2023 2024 2025 (E) 2026 (F) 2027 (P)

Private housing

Private housing starts (No.) 131,084 91,078 100,186 109,202 119,031

(20.0)% (30.5)% 10.0% 9.0% 9.0%

Private housing completions (No.) 144,031 134,379 131,691 134,325 138,355

(13.5)% (6.7)% (2.0)% 2.0% 3.0%

Public housing

Public housing starts (No.) 41,943 36,275 34,461 36,874 39,086

(7.8)% (13.5)% (5.0)% 7.0% 6.0%

Public housing completions (No.) 45,273 44,138 42,372 43,220 44,949

9.0% (2.5)% (4.0)% 2.0% 4.0%

1 Construction data sourced from the CPA Winter 2025 – 2026forecast.

Ibstock’s key markets

New-build housing is a key strategic sector for

Ibstock. We hold leading positions across both

our Clay and Concrete businesses and support

this market through:

@ long-standing strategic relationships with

UKhouse builders, distributors and

builders’merchants;

@ a broad, high-performing product range

across the building envelope, supported by

expert design and technical services;

@ unrivalled UK operational network with local

factories supporting local projects; and

@ continuous enhancement of our

existingproduct range alongside new

productdevelopment to meet evolving

customerneeds.

New private housing remains one of the most

significant segments of the UK construction

market, both in output value and strategic

importance. Data from the Office of National

Statistics (‘ONS’) shows the sector has seen

notable volatility: while the value of private new

housing fell sharply in 2023, indicators through

2025 suggest stabilisation in parts of the

market. However, the picture on the ground

remains mixed, with planning approvals at

historically low levels, constraining future starts

due to ongoing delays and resourcing pressures

across local authorities.

Average house prices grew modestly in 2025,

although momentum slowed compared with

earlier in the year, indicating a cautious housing

environment. With house price growth being

less than inflation in 2025, this does suggest an

easing of affordability constraints for private

sale housing.

We maintain a strong focus on this sector,

holding market-leading positions across

productcategories critical to private housing

delivery, supported by our resilient and

efficientmanufacturing network.

Policy and planning reform efforts have moved

forward, with the Government undertaking a

major revision of the National Planning Policy

Framework in 2025 to make rules clearer, more

predictable and better aligned with the

ambition to deliver 1.5 million new homes

during the current Parliament.

In parallel, an ambitious new towns

taskforcehas identified priority sites for

majornewcommunities expected to unlock

tens ofthousands of homes through

long-term,large-scale developments

andsupportinginfrastructure.

Both initiatives will take time to translate into

higher levels of activity, with tangible impact

expected beyond the near term.

Social housing

The Government is driving social and affordable

housing delivery through significant policy

support and funding. The current Affordable

Homes Programme (2021 – 2026) is backed by

£11.5 billion of funding, with further uplifts in

2024 and 2025 and an additional £2 billion

announced in March 2025. Looking ahead, the

new £39 billion Social and Affordable Homes

Programme (2026 – 2036) will provide

longer-term funding certainty and sustained

delivery at scale.

We are well positioned to support this

growththrough:

@ long-standing relationships with major

housebuilders delivering social housing;

@ growing partnerships with housing

associations; and

@ a leading range of UK-manufactured

products made with local materials and

labour, supported by our social impact

effortsthat help customers meet social

valuecommitments.

Product: New Ivanhoe Cream

Project: Kaimhill housing Aberdeen

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16Ibstock Plc | Annual Report and Accounts 2025

Market and industry overview continued

Housing RMI

2023 2024 2025 (E) 2026 (F) 2027 (P)

Private housing RMI (No.) 34,944 37,557 36,806 36,438 37,531

4.3% 7.5% (2.0)% (1.0)% 3.0%

Public housing RMI (No.) 8,611 10,002 10,202 10,406 10,822

3.3% 16.2% 2.0% 2.0% 4.0%

1 Construction data sourced from the CPA Winter 2025 – 2026forecast.

Ibstock’s key markets continued

@ Long-standing strategic relationships with

builders’ merchants and distributors across

the UK.

@ A leading range of high-performing products

for housing repair, maintenance and

improvement projects.

@ Investment at Nostell Horizon,

strengtheningour solutions for

recladdingand remediation projects.

Housing RMI remains a significant and resilient

part of the UK construction market and

continues to be a key focus for our business.

According to the ONS, repair and maintenance

activity on existing private dwellings was one of

the stronger contributors to output growth

through 2025, with private housing RMI

recording notable monthly increases and

outperforming certain new-build segments.

While the ONS has not yet published a full-year

figure for 2025, leading forecasts point to

continued modest growth as households

prioritise essential improvements and

maintenance alongside subdued new

housingactivity.

Recent trends reflect broader consumer

behaviour. Activity peaked in 2021 – 2022

during the pandemic-driven ‘race for space’,

before softening in 2023 – 2024 amid cost

ofliving pressures.

Long-term demand remains underpinned by

structural drivers, including ambitions on rising

living standards, demographic shifts and

ongoing requirements for retrofit, cladding

remediation and fire-safety compliance.

Although remediation progress has varied due

to capacity and skills constraints, house builders

and developers remain committed to

completing work by 2029, supporting sustained

specialist RMI activity over the medium term.

Product: Ivanhoe Cream

Project: Perry Barr Residential Apartments

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Ibstock Plc | Annual Report and Accounts 2025

Market and industry overview continued

Infrastructure

2023 2024 2025 (E) 2026 (F) 2027 (P)

£m 36,991 33,957 34,821 36,180 37,772

4 .4% (8.2)% 2.5% 3.9% 4.4%

1 Construction data sourced from the CPA Winter 2025 – 2026forecast.

@ Strong relationships with customers across

railand infrastructure.

@ A focus on innovation and new

solutiondevelopment.

@ Manufacture of bespoke products for the

infrastructure sector.

Infrastructure remains one of the largest

areasof UK construction, with new work

valued at around £33.9 billion in 2024

(ONSdata), placing it among the top three

segments by output value. 2025 data showed

monthly increases in infrastructure activity,

even as wider construction softened.

Government commitments to maintain major

non-residential construction pipelines and

ongoing planning reforms have supported

activity. While the anticipated 10-year Transport

Strategy has been deferred, targeted funding

for road maintenance and local transport

improvements continues to reinforce the

infrastructure outlook.

We continue to have a strong and resilient

presence in this sector, particularly in rail and

transport, where our focus on reducing embodied

carbon aligns with client requirements and sector

decarbonisation priorities.

Commercial and public sector

Commercial and public sector construction

remains a significant part of the UK market,

historically accounting for around 20% of total

output. This sector spans offices, retail, cultural

facilities, schools, hospitals and other public

buildings, and we have a strong track record of

supplying products and systems into some of

these markets, including numerous

award-winning projects.

ONS data indicates that private commercial

new work softened through 2025, while public

sector new work and refurbishment activity

provided stability. Major projects, alongside

multiple school and healthcare programmes,

continue to support the pipeline despite

subdued speculative office and large retail

development. Activity varies widely by project

type and location, with conversion of existing

buildings into residential or mixed-use space

and demand for industrial and logistics facilities

remain important drivers.

Looking ahead, commercial and public sector

output is expected to remain broadly stable

through 2025 and early 2026, supported by

refurbishment, fit-out and public sector schemes.

We foresee a growth in the public sector pipeline

as the New Hospital programme and MoD

spending ramps up, particularly as we come

towards the end of the five-year election cycle.

Diversified markets and new segments

@ Clay brick remains the dominant façade

material in residential projects.

@ To strengthen our position, we have invested

in the UK’s most advanced ceramic façade

facility at Nostell, producing new IBricks and

innovative solutions such as FastWall for

emerging segments.

@ We also offer a range of well-established

façade systems suited to these markets.

We are diversifying into mid to high rise, build

torent and off-site construction, as well as

segments benefiting from increased

Government investment, including education,

healthcare and defence. The adoption of MMC

continues to grow across multiple markets,

supported by Government commitment. We

remain focused on supporting MMC expansion

with innovative products and solutions that

enable customers to fully realise their benefits.

Ibstock’s key markets continued

Product: Bespoke Precast Anderton Concrete

Project: HS2 Colne Valley

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18Ibstock Plc | Annual Report and Accounts 2025

Our business model

Delivering

lasting value

Market leadership and resources

We are a market leader in UK building products, supported by

over 70 million tonnes of consented clay reserves and 145 million

tonnes of resources, ensuring strong production capacity across

all factories.

Long-standing customer relationships and expertise

Our service-led ethos and focus on quality and service have driven

growth for over a decade, with many customer relationships lasting

more than 40 years. Our highly experienced management team

brings deep industry knowledge and expertise.

Capacity and innovation

We continue to invest in advanced technology to continuously

improve, expand capacity and meet evolving market demands.

Strengths

Our strong heritage, well-invested facilities, skilled workforce,

anddesign and technical expertise underpin our success. With

high barriers to entry, robust health and safety, a solid balance

sheet and 2,170 acres of UK land, we maintain an unrivalled

operational footprint.

Investors

We pay dividends with targeted cover of approx 2x underlying

earnings supported by high-margin businesses, strong cash

generation and a growth-focused strategy.

Customers

Our key customer groups include builders’ merchants, house

builders, distributors, contractors and installers. We offer

unrivalled choice and full-range concrete solutions.

Employees

We prioritise safety, wellbeing and career development, while

promoting share ownership through schemes like Sharesave

toshare long-term value.

Pension fund members and Trustees

Insurance contracts underwrite pension commitments,

reducing risk and ensuring security for members and Trustees.

Communities

We are an important employer in the many areas where

we are located and actively support local schools, colleges

and charities, striving to leave a positive, lasting impact.

Government and regulators

We engage on laws and regulations, ensure environmental

compliance, and commit to timely, appropriate UK tax payments.

Our unique strengths What we do Creating value for all

Extraction

Clay and shale sourced from

Group-owned or long-term

leased quarries near plants

ensure secure, sustainable

raw material supply.

Principal risks:

1, 2, 4

Procurement

As a major buyer, we secure

efficient purchasing, local sourcing,

long-term supplier ties and

proactively manage

energy costs.

Principal risks:

1, 3, 5, 6

Manufacturing

We hold the UK’s largest brick

production capacity with a strategic

footprint, using wire-cut and soft-mud

methods. Our concrete product offering

is diverse, and we continue to drive

growth through MMC and

sustainable solutions.

Principal risks:

1, 2, 3, 4, 5, 7, 8

Read more about ourstakeholders

on pages 35 to 38

Product design

We drive innovation through

technology investment, improving

existing product quality and developing

even more sustainable solutions

with customer collaboration.

Principal risks:

1, 2, 3, 5, 7, 8

Distribution

The majority of our UK

manufacturing sites are strategically

located near transport links, with

most haulage outsourced to partners.

Principal risks:

3, 4, 5

Sales

We serve diverse house building

and construction customers, offering

design and technical support with

regular satisfaction monitoring.

Principal risks:

1, 2, 3, 4, 5, 6, 7

Strategic Report

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Ibstock Plc | Annual Report and Accounts 2025

Our strategy

Creating

lasting value

Ibstock’s strategy is to optimise and

enhance the existing business, whilst

investing for growth in both core

and diversified construction markets

and fast-growing sectors.

Our purpose

is to build a better world by being at the heart of building

Our strategic pillars

Integrated sustainability targets

Our differentiators are our ‘North Star’

The North Star is key to both our continuing progress as we build momentum and to the creation of a longer-term

roadmap, ensuring that we continue to differentiate our business with clarity and ambition

as we support positive change in UK housing and construction.

Sustain Innovate Grow

Addressing

Climate Change

Manufacturing

Materials for Life

Improving

Lives

on page 21

on pages 42 to 44

on page 22

on page 45

on page 23

on page 46

Safe, reliable

production

Obsessive

customer

experience

Sector

innovation

Sector-leading

sustainability

and social impact

People

and culture

Underpinned by our values:

Care, Courage, Trust and Teamwork

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20Ibstock Plc | Annual Report and Accounts 2025

Our strategy continued

Sustain

Sustainable high performance is at the core of what we do – delivering products safely, reliably

andefficiently while putting customers at the centre. Embedding operational excellence

andstandardisation will strengthen our resilience and enable future growth.

STRATEGY IN ACTION:

Safe, reliable production

2025 progress KPIs/Measure Risks Sustainability

targets

Safety performance

Meaningful progress was made in strengthening risk controls and

safety leadership. TIFR was 36.6 (2024: 31.4), with incidents

concentrated in commissioning and transition activity – key learnings

are being implemented into future plans.

Multi-year Safe Reliable Production System

programmedevelopment

The programme will embed safety and reliability across the estate,

improving competitive advantage. In-year focus centred on

preparations at Aldridge as our pilot factory.

Strategic planning and investment

Strategic planning and estate renewal was advanced, with non-core

land and Roofing business disposals improving our balance sheet

strength and future investment optionality.

Non-financial

@ TIFR

@ % completion against

target actions

@ % employees trained

Financial

@ Revenue

@ Adjusted EBITDA*/

Adjusted EBIT*

@ Adjusted Return on

Capital Employed*

(‘ROCE’)

@ Adjusted EPS*

@ Regulatory and

Compliance

@ Health, Safety

and Environment

@ Financial Risk

Management

@ Customer and

Industry

@ Addressing

Climate Change

(Carbon)

@ Improving Lives

(Skills)

Obsessive customer experience

Customer experience

We strengthened our customer strategy through piloting AI forecasting,

clearer segmentation and deeper survey insight, which supported our

overall customer relationship rating uplift from 7.65 to 7.93.

Atlas

Commissioning of the full product range is progressing – see spotlight

opposite for further details.

Non-financial

@ Customer referral rating

@ % sales from new

andmore sustainable

products

Financial

@ Revenue

@ Adjusted EBITDA*/EBIT*

@ Economic

Conditions

@ Customer and

Industry

@ Addressing

Climate Change

(Carbon)

@ Manufacturing

Materials for

Life(NPD)

Atlas Pathfinder

factory

Atlas is our most advanced wire-cut brick

manufacturing facility, designed to deliver

higher productivity, improved reliability and

lower unit costs for UK house builders. This

£64million investment is the cornerstone of our

£325 million modernisation programme over

the past eight years, strengthening operational

efficiency, consistency and quality across the

manufacturing network. Atlas supports a more

efficient product mix – 105 million annually –

including our lowest carbon bricks, along with a

new Atlas ‘Pathfinder’ range, which combines

the visual appeal of traditional soft-mud bricks

with the manufacturing efficiency of wire-cut

production. Atlas also creates a platform for

future innovation, including the potential to

pioneer green hydrogen solutions to further

accelerate sector-wide decarbonisation.

Atlas Factory progressing through commissioning

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21Ibstock Plc | Annual Report and Accounts 2025

Our strategy continued

Innovate

We combine heritage with innovation in products, digital capability and customer

solutions to deliver higher-value offerings – strengthening our market-leading position

and selective expansion into adjacent markets.

Taking heritage

intoHorizon

Our new Nostell Horizon factory blends our

heritage and expertise with first-of-its-kind

technology, creating the UK’s most advanced

ceramic façade facility. Producing IBricks with

digitally enabled design, it introduces and

enables innovative products and solutions such

as FastWall, opening up new market segments

and customer opportunities whilst supporting

MMC. This £45 million investment expands our

reach, strengthens UK manufacturing resilience,

adds additionality to the network and sets new

standards for even more sustainable, future-

focused building solutions.

STRATEGY IN ACTION:

Sector innovation

2025 progress KPIs/Measure Risks Sustainability

targets

New product development

Innovation continues to deliver tangible impact, with 25% of Group

revenue in 2025 generated from new and more sustainable products

(2024: 22%), reflecting positive customer adoption and effective

execution of our development pipeline.

Continued production innovation focus across our concrete products,

including the redesign of selected concrete rail products using

reinforcement materials to significantly increase longevity and

durability. This work has been completed in collaboration with

NetworkRail.

Strategic projects progressing well

The second phase of the Nostell project remains on track, supported

bypositive customer response to early product and design innovations,

including our new IBricks and FastWall. See spotlight opposite for

further details.

Atlas commissioning – see spotlight on page 21.

Non-financial

@ % sales of new and

more sustainable

products

@ Customer referral

rating/NPS

Financial

@ Revenue

@ Adjusted EBITDA*/EBIT*

@ Adjusted ROCE*

@ Net debt to Adjusted

EBITDA*

@ Adjusted EPS*

@ Regulatory and

Compliance

@ Economic

Conditions

@ Customer and

Industry

@ Addressing

Climate Change

(Carbon)

@ Manufacturing

Materials for Life

(NPD)

Nostell Factory progressing through commissioning

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Ibstock Plc | Annual Report and Accounts 2025

Our strategy continued

Grow

Driving growth and value creation through diversification into new markets

andsectors, supported by culture, capability development and skills.

Sector-leading sustainability and social impact

2025 progress KPIs/Measure Risks Sustainability

targets

Sustainability

Our 2025 materiality assessment sharpened focus on carbon, product

innovation and sector skills. Key milestones included reaching halfway

towards our 40% Scope 1 and 2 reduction target, supported by our

carbon transition modelling. The launch of our first Ibstock Academy

atWalsall College is also taking shape as we build wider sector

skills.Around 80% of our supplier spend is now aligned to our new

supplier commitments.

Diversification

New markets and segments remain a key strategic priority, with

investments such as Nostell demonstrating strong progress with

NPDsdescribed on page 22. In 2025, we also advanced lower-carbon

solutions for the wider industry, including progressing Calcined Clay

towards commercialisation and leveraging our own reserves to

supportdecarbonisation – see spotlight opposite for further details.

Non-financial

@ Carbon reduction

@ % sales from new and

more sustainable

products

@ Earn and Learn

@ People and Talent

Management

@ Economic

Conditions

@ Customer and

Industry

@ Climate Change

@ Addressing

Climate Change

(Carbon)

@ Manufacturing

Materials for

Life(NPD)

@ Improving Lives

(Skills)

People and culture

Employee engagement and development

Employee engagement remained solid, with our Best Companies

survey retaining ‘Ones to Watch’ status with 83% colleague

participation. Alongside this, we maintained our Gold accreditation

from the 5% Club with 7.2% of employees in Earn and Learn positions.

Diversity and inclusion

Senior female representation remained stable at 32% (2024: 34%)

despite a number of organisational changes. The percentage of

ethnically diverse leaders increased to 15% (2024: 7%), ahead of

our2030 target.

Non-financial

@ Female representation

in senior leadership

(FTSE Women Leaders

definition)

@ People and Talent

Management

@ Economic

Conditions

@ Improving Lives

(Skills)

Stock quarry image

Calcined Clay

In 2025, we made strong progress in advancing

the commercialisation of Calcined Clay, a

low-carbon cementitious material with the

potential to reduce Portland cement CO

emissions by around 40%. Drawing on our

high-quality, long-life clay reserves, we are

developing a platform capable of supporting

the UK’s first industrial-scale calcined clay

facility. Partner discussions are now well

advanced, representing a significant long-term

growth opportunity that strengthens our

position in low-carbon construction innovation.

STRATEGY IN ACTION:

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Key performance indicators

Financial KPIs

How we are performing

Revenue £m Adjusted EBITDA* £m Adjusted ROCE* % Adjusted EPS* p

Net debt to

AdjustedEBITDA* x

2025 2025 2025 20252025

2024 2024 2024 20242024

2023 2023 2023 20232023

2022 2022 2022 20222022

2021 2021 2021 20212021

409

513

406

366

372

103

140

107

0.4

1.1

1.8

2.0

15.8

23.4

13.4

7.5

5.8

13.9

22.7

13.9

7.7

5.7

Description

Revenue represents the value for

the sale of our building products

and services, net oflocal sales tax

and trade discounts.

Description

Represents profit before interest,

taxation, depreciation and

amortisation after adjusting for

exceptional items*.

Description

Net debt, comprising short- and

long-term borrowings less cash,

over Adjusted EBITDA* (as defined)

prior to the impact of IFRS 16.

Description

The ratio of profit before interest

and taxation, after adjusting for

exceptional items*, to average net

assets and debt (excluding pension).

Description

Basic earnings per share adjusted

for exceptional items*, amortisation

and depreciation on fair valued

uplifted assets and non-cash

interest, net of the associated

taxcharge.

Description

The number of employee injuries

(death, lost time, restricted work

and medical treatment cases) x

1,000,000 divided by the total

hours worked.

Description

Represents the amount of

Scope1 and 2 carbon emissions

produced per tonne

of finished production.

Description

Proportion of revenue generated

from new and more sustainable

products introduced to the market

within the last five years.

Description

The number of customers likely to

recommend Ibstock to a friend or

colleague. Scored out of 10.

Description

Percentage of senior leaders

whoare women at year end as

definedby the FTSE Women

Leaders Review.

Description

Proportion of colleagues in formal

learning or training supported by

the business, as defined by the

5% Club.

Why important?

Revenue provides a measure of

the financial growth of theGroup.

Why important?

Adjusted EBITDA* provides a

keymeasure to assess the

Group’sprofitability.

Why important?

Net debt to Adjusted EBITDA*

provides a useful measure

inassessing the Group’s

financialstrength.

Why important?

Adjusted ROCE* provides an

indication of the relative

efficiency of capital use

by the Group over the year.

Why important?

Adjusted EPS* provides useful

information in assessing the

performance of the Group and

when comparing its performance

across comparative periods.

Why important?

The measure gives a picture of

howsafe a workplace is for its

employees, which helps support

riskidentification and reduction.

Along-term target of 30%

reduction in TIFR by the end of

2030 (against 2025 baseline)

hasbeen set.

Why important?

Provides a key measure of our

progress against our carbon

reduction targets (see page 41)

and demonstrates our

commitment to addressing

climate change.

Why important?

This demonstrates our progress

to meet our customer needs,

diversify our product offer and

improve the sustainability

attributes of existing products.

Why important?

It is used as a proxy for gauging

acustomer’s overall satisfaction

with our products and service

levels and their loyalty to

thebrand.

Why important?

This measure assesses whether

we have an appropriate gender

balance in senior positions

throughout the Group.

Why important?

This demonstrates commitment

to the development of colleagues,

supporting retention of talent and

the succession planning processes

within the business.

Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy

Remuneration linkage

Forms part of the financial health

component of the strategic

underpin in the Long Term

Incentive Plan (‘LTIP’) from 2025.

Remuneration linkage

Forms part of the financial health

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Forms part of the financial health

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

A key measure within the 2023

and 2024 LTIP arrangement

witha weighting of 20% of

totalopportunity.

Forms part of the financial health

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

A key measure within the 2023

and 2024 LTIP arrangement

witha weighting of 30% of

totalopportunity.

* Alternative Performance Measures are

described in Note 3 to the consolidated

financial statements.

Remuneration linkage

Forms part of the stakeholder

experience component of the

strategic underpin in the LTIP

from 2025.

1 The 2024 TIFR number has been restated

due to the calculation including

additional data points in 2024.

Remuneration linkage

Measure in the LTIP granted

between 2021 and 2023 with 10%

weighting of opportunity. Refined

measure of carbon per brick

included in the 2024 LTIP grant.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Measure in LTIP granted between

2022 and 2025 with 5%

weighting of opportunity.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Forms part of the stakeholder

experience component of the

strategic underpin in the LTIP

from 2025.

Remuneration linkage

Measure in the LTIP granted

between 2022 and 2023 with 5%

weighting of opportunity.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Measure in LTIP granted in 2024

with 5% weighting of opportunity.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Key performance indicators continued

Non-financial KPIs

Earn and Learn %

Total Injury

FrequencyRate (‘TIFR’)

20252025

20242024

2023

2022

Key to strategy

Sustain

Innovate

Grow

Female representation in

senior leadership %

2025

2024

2023

2022

2021

Carbon reduction metric

2025

2024

2023

2022

2021

0.16

0.141

0.145

0.148

0.138

Share of revenue from

new products %

2025

2024

2023

2022

2021

Customer referralrating

2025

2024

7.65

7.93

31.4

36.6

7.5

6.9

7.4

7.2

Description

Revenue represents the value for

the sale of our building products

and services, net oflocal sales tax

and trade discounts.

Description

Represents profit before interest,

taxation, depreciation and

amortisation after adjusting for

exceptional items*.

Description

Net debt, comprising short- and

long-term borrowings less cash,

over Adjusted EBITDA* (as defined)

prior to the impact of IFRS 16.

Description

The ratio of profit before interest

and taxation, after adjusting for

exceptional items*, to average net

assets and debt (excluding pension).

Description

Basic earnings per share adjusted

for exceptional items*, amortisation

and depreciation on fair valued

uplifted assets and non-cash

interest, net of the associated

taxcharge.

Description

The number of employee injuries

(death, lost time, restricted work

and medical treatment cases) x

1,000,000 divided by the total

hours worked.

Description

Represents the amount of

Scope1 and 2 carbon emissions

produced per tonne

of finished production.

Description

Proportion of revenue generated

from new and more sustainable

products introduced to the market

within the last five years.

Description

The number of customers likely to

recommend Ibstock to a friend or

colleague. Scored out of 10.

Description

Percentage of senior leaders

whoare women at year end as

definedby the FTSE Women

Leaders Review.

Description

Proportion of colleagues in formal

learning or training supported by

the business, as defined by the

5% Club.

Why important?

Revenue provides a measure of

the financial growth of theGroup.

Why important?

Adjusted EBITDA* provides a

keymeasure to assess the

Group’sprofitability.

Why important?

Net debt to Adjusted EBITDA*

provides a useful measure

inassessing the Group’s

financialstrength.

Why important?

Adjusted ROCE* provides an

indication of the relative

efficiency of capital use

by the Group over the year.

Why important?

Adjusted EPS* provides useful

information in assessing the

performance of the Group and

when comparing its performance

across comparative periods.

Why important?

The measure gives a picture of

howsafe a workplace is for its

employees, which helps support

riskidentification and reduction.

Along-term target of 30%

reduction in TIFR by the end of

2030 (against 2025 baseline)

hasbeen set.

Why important?

Provides a key measure of our

progress against our carbon

reduction targets (see page 41)

and demonstrates our

commitment to addressing

climate change.

Why important?

This demonstrates our progress

to meet our customer needs,

diversify our product offer and

improve the sustainability

attributes of existing products.

Why important?

It is used as a proxy for gauging

acustomer’s overall satisfaction

with our products and service

levels and their loyalty to

thebrand.

Why important?

This measure assesses whether

we have an appropriate gender

balance in senior positions

throughout the Group.

Why important?

This demonstrates commitment

to the development of colleagues,

supporting retention of talent and

the succession planning processes

within the business.

Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy

Remuneration linkage

Forms part of the financial health

component of the strategic

underpin in the Long Term

Incentive Plan (‘LTIP’) from 2025.

Remuneration linkage

Forms part of the financial health

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Forms part of the financial health

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

A key measure within the 2023

and 2024 LTIP arrangement

witha weighting of 20% of

totalopportunity.

Forms part of the financial health

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

A key measure within the 2023

and 2024 LTIP arrangement

witha weighting of 30% of

totalopportunity.

* Alternative Performance Measures are

described in Note 3 to the consolidated

financial statements.

Remuneration linkage

Forms part of the stakeholder

experience component of the

strategic underpin in the LTIP

from 2025.

1 The 2024 TIFR number has been restated

due to the calculation including

additional data points in 2024.

Remuneration linkage

Measure in the LTIP granted

between 2021 and 2023 with 10%

weighting of opportunity. Refined

measure of carbon per brick

included in the 2024 LTIP grant.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Measure in LTIP granted between

2022 and 2025 with 5%

weighting of opportunity.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Forms part of the stakeholder

experience component of the

strategic underpin in the LTIP

from 2025.

Remuneration linkage

Measure in the LTIP granted

between 2022 and 2023 with 5%

weighting of opportunity.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Remuneration linkage

Measure in LTIP granted in 2024

with 5% weighting of opportunity.

Forms part of the sustainability

component of the strategic

underpin in the LTIP from 2025.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Operating Review

Health, safety and wellbeing

During 2025, we maintained a strong focus on

risk reduction and strengthening site standards

across our manufacturing operations. We

progressed Leadership in Action Phase 2 and

introduced the Safety Barometer and Critical

Control Monitoring plans, piloted at Aldridge

inDecember 2025 with wider roll out planned

through Q1 of 2026. We also delivered Level 4

of the Lock Out, Tag Out, Try Out (‘LOTOTO’)

roadmap, reinforcing operational discipline

andaccountability.

TIFR was 36.6 (2024: 31.4), broadly in line

withthe prior year, reflecting the additional

operational complexity of commissioning and

operating two new factories during the period.

Our focus remains on critical controls, consistent

standards and sustained risk reduction into 2026.

Ibstock Clay

Ibstock Clay is the leading

clay brick manufacturer in

the UK, with an extensive

product range and 15

manufacturing sites across

the country, strategically

located near to extensive

self-owned clay reserves.

2025 performance

Revenue

£260m

Adj EBITDA*

£68m

No. of sites

15 Clay

4 Kevington

As well as being the UK’s largest brick supplier,

Ibstock Clay (‘Clay’) also manufactures special

brick shapes and bespoke products, including

arches and cladding solutions through its four

Ibstock Kevington sites. Clay is a significant

supplier to the new-build housing sector, the

RMI market through builders’ merchants and

the specification sector through a number of

our direct distribution channels. Clay also

includes the performance of Ibstock Futures.

More detail about Ibstock Futures is given on

pages 27 to 28. Clay delivered a resilient volume

performance against a tough market backdrop.

Revenues of £260 million (2024: £249 million)

were 5% above 2024. There was strong volume

growth in first half of the year, with market

conditions becoming progressively more

challenging in the second half of the year

resulting in broadly flat volumes versus the prior

year period. A more competitive environment

constrained headline pricing, which combined

with mix being more weighted to wire-cut bricks

sales contributed to average prices in 2025

being slightly below the prior year. Clay’s brick

market share was ahead of the comparative

period despite sales volumes decreasing in the

second half of the year, with revenues around

5% lower than the first half.

Adjusted EBITDA* reduced by 6% to £68 million

(2024: £72 million) and profit before tax

reduced by 43% to £17 million (2024: £30 million)

due to the inability to pass on cost inflation in

acompetitive pricing environment, adverse

product mix and incremental fixed costs

associated with capacity reactivation, which

tapered as the year progressed. These

headwinds were partially offset by firmer

pricing towards the back end of the year as well

as decisive cost action. As demand weakened in

H2, performance benefited from absorption of

fixed costs as inventory increased. Clay’s results

included £9 million (2024: £10 million) of

revenue relating to Ibstock Futures, reflecting

the closure of the Telling Glass Reinforced

Concrete (‘GRC’) business in the first quarter

of2025, offset by growth in other product

categories. Ibstock Futures’ financial

performance moved forward with overall net

costs (including research and development

expenditure) of £2 million (2023: £7 million).

Adjusted EBITDA* margins for the period within

Clay were 26.2%, down 290 basis points

(2024:29.1%) reflecting lower margins within

the core Clay business for the reasons outlined

above, partly mitigated by an improvement in

financial performance within Ibstock Futures.

Sustain

Our multi-year Safe Reliable Production System

programme embeds safety and efficiency at

theheart of our operations, supporting reliability

and competitive performance. In 2025, we

Strong divisional

performance

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Operating Review continued

Health, safety and wellbeing

continued

Sustain continued

focused on preparing our Aldridge factory as

apilot site, with work centred on capability

development, design and the consolidation

ofcore operating processes. The development

ofstandardised systems will facilitate the roll

outofbest practice across the Group.

As part of our customer service focus we are

developing a stronger data-driven approach

todemand insights, including the development

of an AI-enabled forecasting model and a

moresegmented approach to improve

targeting and personalisation.

We retained a focus on strong commercial

execution and high standards of customer

service. On Time, In Full (‘OTIF’) service levels

continued to run at a high level of around 95%.

Service performance remained a competitive

advantage, supporting customer retention and

market share in priority channels. We continued

to strengthen demand visibility through

improved data and forecasting, enabling tighter

production planning and a more responsive

approach to changing market conditions.

The Group continues to manage a significant

land estate dynamically, pursuing opportunities

to generate ongoing income streams and

looking to recycle capital where it can support

the long-run efficiency of our business.

Innovate

New product development (‘NPD’) is a key part

of the Group’s strategy, supporting innovative

and more sustainable solutions for the UK

construction market. In 2025, Clay introduced

six new products targeting the specification

sector, building on our focus on higher-value

customer requirements.

Grow

During 2025, the commissioning and ramp-up

of the full product range at the Atlas factory

progressed well and we are now delivering six

out of a total of 13 planned products. The new

range has been received well, combining the

aesthetics of soft-mud bricks with the efficiency

of wire-cut production, supporting design-led

demand whilst enhancing operational

performance. The Atlas factory has been

shortlisted for the Government’s second round

of hydrogen funding known as HAR2.

Calcined Clay has been a programme of activity

overall several years. This key reserve presents

the potential to reduce concrete’s CO

emissions

by around 40%. Following an extensive

technical assessment we have reached the final

phase of the process to realise the potential of

our Calcined Clay reserves, with preferred

partner selection and a commercial agreement

expected to conclude in the first half of 2026.

Ibstock Futures

MMC is a significant area

of opportunity for Ibstock,

which includes off-site

manufacture and assembly.

We addressed this opportunity through

thecreation of Ibstock Futures (‘Futures’),

agrowth engine forming part of the

Claydivision.

Futures has two objectives:

@ to deliver and create products that

enable MMC in the UK, delivering

significant improvements in productivity

and deliverability; and

@ to be at the forefront of sustainable

construction by supporting the growth

of new construction methods as well

asmore environmentally friendly ways

ofmanufacturing.

2025 performance

Revenue

£9m

Adj EBITDA*

£(2)m

No. of sites

2025 performance

Futures delivered an improved financial

performance in 2025, with Futures recognising

an underlying net cost (including research

anddevelopment expenditure) of £2 million

(2024:£7 million) reflecting reduced losses

within the GRC business, which ceased

production in the first half of the year.

Futures continued to experience suppressed

demand in the wider market and delays due

tothe implementation of the Building Safety

Act 2022.

However, despite this backdrop, we continue to

invest in innovation and also building both the

capacity and capability of Futures. In 2025,

welaunched ‘FastWall’, a new panelised brick

façade product for use alongside timber-frame

house building, with the first projects being

delivered in 2026.

The need for greater productivity and the

demographics of an ageing workforce, are

challenges facing the construction industry

andwe continue to believe that MMC

represents an important source of diversified

growth for the Group over the medium term.

Sustain

Our new automated brick slips cutting line at

Nostell continued to ramp up, being the first

phase of our slips investment programme,

which provides a significant domestic supply

ofbrick slips into the UK market.

Product: New Chailey Rustic Stock and Bradgate Medium Grey

Project: Redrow Plaza Central

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Health, safety and wellbeing

continued

Innovate

During 2025, we continued to progress a series

of strategic projects centred around energy and

alternative use of clays.

Grow

Futures’ markets continue to build, and the slips

investment programme is progressing well.

Thiswill move from commissioning to

production in 2026.

The large-scale development at our Nostell

facility in West Yorkshire has now delivered a

new automated brick slip cutting line. Phase 2

of the Nostell redevelopment focuses on the

construction of a larger ceramic façade facility

with an initial capacity of a further 30 million slips

per annum. The Nostell Horizon factory blends

our heritage and expertise with first-of-its-kind

technology, producing IBricks with digitally

enabled design. It introduces andenables

innovative products and solutions such as

FastWall, opening up new market segments and

customer opportunities, whilst supporting MMC.

Ibstock Concrete

Ibstock Concrete is one of

the UK’s largest specialist

manufacturers of concrete

construction products,

occupying strong positions in

the new-build housing, RMI

and infrastructure markets.

Ibstock Concrete (‘Concrete’) consists of five

established brands – Forticrete, Supreme,

Anderton, Longley and Coltman – and is

organised into six product groups – Roofing,

Flooring and Lintels, Staircases and Lift Shafts,

Fencing and Landscaping, Retaining Walls,

and Rail and Infrastructure.

In the fourth quarter of 2025, we sold our

Roofing business as part of a disciplined

approach to portfolio management and

capital allocation.

Concrete operates across 11 manufacturing

sites geographically spread across the UK.

2025 performance

Revenue

£112m

Adj EBITDA*

£9m

No. of sites

2025 performance

During 2025, Concrete achieved reported sales

of £112 million, which was 5% lower than 2024

(2024: £117 million). Higher residential new-

build volumes were offset by weaker growth in

the RMI market, while infrastructure sales

volumes fell as UK rail infrastructure markets

continued to be impacted by control period

spending constraints. Lower volumes in

higher-margin infrastructure products, together

with subdued RMI demand, weighed on

profitability for the year.

Adjusted EBITDA* reduced by 37% to £9 million

(2024: £15 million). Adjusted EBITDA* margins

of 8.3% (2024: 12.5%) reflect the impact of

subdued RMI volumes and rail volumes on

margins. Concrete benefited from the

absorption of around £1 million of fixed costs

into inventory in the current year period.

In Q4, we completed the disposal of certain

surplus land assets and the Forticrete roofing

business, delivering approximately £30million

of capital from non-core activities. The Roofing

operation was relatively small and its disposal

allows greater focus on core clay and concrete

activities without materially impacting our

future performance.

Innovate

During 2025, we continued product innovation

focus across our concrete products, including

the redesign of selected concrete rail

productsusing innovative reinforcement

materials to significantly increase longevity

anddurability. This work has been completed

incollaboration with Network Rail, with further

development underway.

Grow

The performance of the Coltman business,

acquired by the Group in 2023, continued to

perform well, strengthening our national

distribution model for pre-stressed products,

widening our customer base, as well as

enhancing profit and revenue opportunities

through internalisation of supply.

We continue to have a pipeline of further

fast-payback opportunities to invest capital

inConcrete over the medium term.

Operating Review continued

Nostell Phase 1: New cutting line and robotics installed.

Product: Bespoke Precast Anderton Concrete

Project: HS2 Colne Valley

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Group Financial Review

Strength through

financial discipline

from disposals, including the sale of our Forticrete

roofing sites and surplus land. In parallel, we

rationalised and consolidated a number of

smaller sites and flexed our soft-mud capacity

toenhance operational flexibility and returns.

Group statutory profit before taxation of

£0.9million (2024: £20.7 million) reflected the

impact of lower underlying operating profits

and an exceptional charge

of £19.5 million

(2024: £11.7 million) arising in relation to the

closure and decommissioning activities and

restructuring costs.

The Group’s closing net debt

reduced to

£120million at 31December 2025 (2024:

£122million), representing reported leverage

of2.0 times Adjusted EBITDA

(2024: 1.8 times).

This year end position was achieved through a

resilient cash flow performance, which included

around £30 million of proceeds through the

disposal of non-core assets including the sale

ofour Forticrete roofing sites and the sale of

surplus land, offset by around £45 million of

capital expenditure (including £24 million of

growth expenditure). At 31 December 2025,

theGroup had £105 million of available liquidity.

With our robust financial position, and

inherently cash generative business, we expect

to generate significant cash to support growth

and shareholder returns over the medium term.

The first half saw strong revenue growth

supported by improving end-market demand. In

anticipation of market recovery, we proactively

reactivated productive capacity in Clay to ensure

operational readiness. While this would have

strengthened our ability to serve customers as

the market recovered, the associated start-up

and incremental operating costs weighed on

first-half profitability within the Clay division.

Market conditions moderated in the second

half, with volumes flat compared to the

comparative period. Against a more competitive

backdrop, pricing progression in the core

business was modest, limiting our ability to fully

recover cost inflation. Performance was also

impacted by an adverse mix impact, with

stronger growth in the new-build residential

market and relatively weaker RMI and

infrastructure sectors.

In response to softer demand dynamics,

weacted decisively to right-size capacity and

reduce headcount. These initiatives across

bothour manufacturing network and support

functions will deliver approximately £5 million

of annualised cost savings.

Despite the market volatility, we maintained

disciplined capital allocation, focusing

investment on priority markets while realising

value from non-core assets. During the year, we

generated approximately £30 million of proceeds

“The Group delivered a resilientperformance

in2025, navigating a market backdrop

thatbecame more challenging as the

yearprogressed.”

Simon Bedford

Interim Chief Financial Officer

1 Alternative Performance Measures are described in Note 3 to the consolidated financial statements.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Group Financial Review continued

Group results

The table below sets out segmental revenue, profit/(loss) before tax and Adjusted EBITDA

for

theyear.

Table 1: Segmental performance

Clay Concrete Central costs

Total

Year ended 31 December 2025 £m £m £m £m

Total revenue 260.0 112.1 – 371.1

Adjusted EBITDA

68.1 9.3 (6.3) 71.0

Margin 26.2% 8.3% 19.1%

Profit/(loss) before tax 22.8 (2.4) (13.5) 6.9

Year ended 31 December 2024

Total revenue 248.8 117.4 – 366.2

Adjusted EBITDA

72.3 14.6 (7.6) 79.4

Margin 29.1% 12.5% 21.7%

Profit/(loss) before tax 29.5 3.5 (10.1) 20.7

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

2 Central costs includes interest charges of £7.0 million (2024: £4.6 million) within Profit/(loss) before tax.

Alternative Performance Measures

Our results contain Alternative Performance

Measures (‘APMs’) to aid comparability and

further understanding of the financial

performance of the Group between periods.

Adescription of each APM is included in Note 3

to the financial statements. The APMs represent

measures used by management and the Board

to monitor performance against budget, and

certain APMs are used in the remuneration of

management and Executive Directors. It is not

believed that APMs are a substitute for, or

superior to, statutory measures.

In our Concrete division, revenue reduced 5% year

on year to £112.1 million (2024: £117.4million).

Performance reflected solid volume growth

across residential product categories, offset by

rail volumes, which were materially lower year

on year, as activity levels in UK rail infrastructure

markets remained at historically low levels.

Adjusted EBITDA

Management measures the Group’s operating

performance using Adjusted EBITDA

and

Adjusted EBIT

Adjusted EBITDA

decreased year on year to

£71.0 million in 2025 (2024: £79.4 million).

Performance reflected higher than expected

incremental costs, as we reactivated a

proportion of our clay capacity to ensure that

we were ready to meet anticipated recovering

demand, as well as a competitive market

backdrop, which limited our ability to pass

through cost inflation.

Within the Clay division, Adjusted EBITDA

totalled £68.1 million (2024: £72.3 million),

representing an Adjusted EBITDA

margin of

26.2% (2024: 29.1%). This reflected a lower

margin within the core Clay business for the

reasons outlined above, partly mitigated by

animprovement in financial performance

within the Ibstock Futures business.

The Clay division recognised a net cost of

£2.2million (2024: cost of £6.6 million) in

respect of Ibstock Futures. The Group has

continued to invest in research, development

and marketing capability to support

future revenue opportunities, including

onCalcined Clay.

Adjusted EBITDA

in our Concrete division

decreased to £9.3 million (2024: £14.6 million)

as the division was impacted by materially

lowersales volumes in our rail product

categories. Adjusted EBITDA

margins reduced

to 8.3% from 12.5% in 2024, with the reduction

in margin principally reflecting an adverse sales

mix effect, with lower volumes in the rail

infrastructure sector, which represents a

higher-margin part of the Concrete division.

Central costs decreased to £6.3 million

(2024:£7.6 million) reflecting lower charges

arising from incentive plans.

Adjusted EBIT

In order to focus on a more comprehensive

measure of operating performance, the Group

has also started to measure and report the

Group’s performance using Adjusted EBIT

Adjusted EBIT

is defined as Adjusted EBITDA

less underlying depreciation and amortisation.

For the year ended 31 December 2025,

Adjusted EBIT

reduced to £39.7 million

(2024:£49.6 million) reflecting reduced

tradingprofits.

Exceptional items

Based on the application of our accounting

policy for exceptional items

, certain income

and expense items have been excluded in

arriving at Adjusted EBITDA

to aid

shareholders’ understanding of the Group’s

underlying financial performance.

Revenue

Group revenues for 2025 increased by 2% to

£372.1 million (2024: £366.2 million), principally

driven by strong volume growth in the first half

of the year and a modest reduction in average

selling prices across the core business.

In our Clay division, revenues of £260.0 million

increased 5% on the prior year period

(2024:£248.8 million). Overall, UK brick market

deliveries including imports for 2025 were

6%above the comparative period, with the

Group’s performance ahead of this level. The

contribution from Ibstock Futures to this

revenue number amounted to around

£9.2million (2024: £9.8 million).

1 Alternative Performance Measures are described in Note 3 to the consolidated financial statements.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Group Financial Review continued

Exceptional items

continued

The amounts classified as exceptional

in the

period totalled a net cost of £19.5 million

(2024:£11.7 million cost), comprising:

1. Exceptional cash cost of £7.4 million

(£3.9million, which was cash settled in the

period) associated with the Group’s 2025

restructuring programme, decommissioning

activities and other costs associated with

previously closed sites as well as costs

directly arising from our decision to close

the GRC business.

2. An exceptional non-cash charge of

£10.3million comprising the impairments

and other changes associated with the

2025 restructuring plan and the closure

ofthe GRC business.

3. An exceptional net loss of £1.8 million

arising on disposal of our Forticrete

roofingassets and surplus land.

Further details of exceptional items

are set

outin Note 5 of the financial statements.

Finance costs

Net cash interest paid of £9.7 million was above

the prior year (2024: £8.6 million) due to higher

levels of average debt during the 2025 year.

During the year the Group successfully

refinanced its £125 million Revolving Credit

Facility (‘RCF’), at improved pricing versus the

existing facility. The Group continued to benefit

from its £100 million private placement at a

fixed coupon of 2.19% per annum. We expect

the cash interest expense in the 2026 year to

remain at around £10 million.

Statutory net finance costs of £9.1 million

increased in the year (2024: £6.4 million)

reflecting an increased interest cost on our

bankborrowings as the average borrowing

onour £125 million RCF increased over the

comparative period, and the reduction in

non-cash interest income arising from the

unwind of discounted provisions.

Profit before taxation

Depreciation and amortisation pre-fair value

uplift increased modestly to £31.3 million

(2024:£29.8 million) reflecting incremental

depreciation on clay growth investments.

Weexpect depreciation and amortisation

prefair value uplift to total around £35 million

in 2026, reflecting incremental depreciation

from the Atlas and Nostell factories.

Group statutory profit before taxation of

£6.9million (2024: £20.7 million) reflected the

impact of lower underlying operating profits

and an exceptional charge

of £13.5 million

(2024: £11.7 million) relating to the sale of

ourForticrete roofing assets, surplus land, site

closure and decommissioning activities, as

detailed above.

Taxation

The adjusted ETR

(excluding the impact of

thedeferred tax rate change and exceptional

items

) for the 2025 year was 25.5%

(2024:26.0%). For the 2026 year, we expect

theadjusted ETR to remain at around 26%,

reflecting the 25% headline rate of UK

corporation tax and typical levels of non-

deductible expenses.

The Group recognised a statutory taxation

credit of £0.6 million (2024: £5.6 million) on

Group pre-tax profits of £6.9 million

(2024:£20.7 million). The lower tax charge

in2025 arose principally from the reduction

instatutoryprofits.

Earnings per share

Group statutory basic earnings per share

(‘EPS’)decreased to 1.9 pence in the year to

31December 2025 (2024: 3.8 pence) as a result

of the Group’s trading performance in the period.

Group adjusted basic EPS

of 5.7 pence per

share reduced from 7.7 pence in the prior year,

reflecting a decrease in Adjusted EBITDA

higher depreciation and interest charges.

In line with prior years, our adjusted EPS

metric

removes the impact of exceptional items

, the

fair value uplifts resulting from our acquisition

accounting and non-cash interest impacts, net

of the related taxation charges/credits. Adjusted

EPS

has been included to provide a clearer

guide as to the underlying earnings

performance of the Group. A full reconciliation

of our adjusted EPS

measure is included in Note 7.

Table 2: Earnings per share

2025

pence

2024

pence

Statutory basic

EPS 1.9 3.8

Adjusted basic

EPS

5.7 7.7

Cash flow and net debt

Adjusted operating cash flow decreased

by£21.1 million to £35.0 million (2024:

£56.1million), reflecting a reduction in

AdjustedEBITDA

. The Group also increased

working capital levels by £14.1 million

(2024:£4.5 million increase) as finished goods

inventories increased with progressively

worsening demand. Overall, we anticipate

working capital to remain stable in 2026, with

the typical seasonal increase at the half year.

Net interest paid in 2025 increased to

£10.7million (2024: £8.6 million) reflecting

higher average net debt levels as the Group

drew down on its RCF. Cash tax amounted to

aninflow of £1.4 million (2024: outflow of

£0.5million), as the Group continued to

benefitfrom the accelerated tax deduction

onqualifying capital expenditure. Other cash

outflows of £12.6 million (2024: £9.6 million

outflow) principally comprised lease payments

totalling £10.0 million (2024: £9.7 million)

and£1.9 million in relation to the purchase

ofcarbon emission credits (2024: £nil).

The cash conversion

percentage decreased

to49% (2024: 71%), reflecting a reduction

inAdjusted EBITDA

and an investment

ininventories, mitigated by reduced

tradereceivables.

Adjusted free cash flow

decreased to an

outflow of £9.8 million (2024: inflow of

£10.9million). Capital expenditure amounted

to£44.8 million (2024; (£45.2 million), as the

Group’s investment in its organic growth

projectneared completion. The 2025 capital

expenditure figure comprised £21 million of

sustaining expenditure and £24 million of

growth investments, principally on the Atlas

andNostell factories.

In the 2026 year, we expect total capital

expenditure to be between £25 million and

£30million, which includes the final outflows

inrespect of the Atlas and Nostell factories.

1 Alternative Performance Measures are described in Note 3 to the consolidated financial statements.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Group Financial Review continued

The table above excludes cash flows relating to

exceptional items

in both years. During 2025,

the Group realised £31.2 million of exceptional

cash inflows relating to the sale of our Forticrete

roofing business and surplus land (2024: £nil),

which had been offset by site closure and

decommissioning activities cash flows of

£5.1million (2024: £11.2 million).

Net debt

(borrowings less cash) at

31December 2025 totalled £120.0 million

(31December 2024: £121.6 million; 30 June

2025: £144.5 million), representing leverage

of2.0 times Adjusted EBITDA

(December 2024:

1.8 times).

We disposed of the first tranche of a closed site

at Ravenhead in the North-West during the

period, recognising cash proceeds of £3 million

and generating a profit on disposal of just over

£1.5 million. We continue to expect to realise

proceeds of around £20 million to £30 million

from the land estate over the coming three

tofive years.

The Group’s borrowings contain leverage

covenants of no greater than 3.0 times.

Based on the covenant definition, leverage

at31December 2025 totalled 1.7 times,

comfortably below the covenant limit. At

31December 2025, the Group had drawn

£42 million under its RCF and had £105 million

of available liquidity.

The present value of lease liabilities decreased

to around £29.5 million (2024: £35.0 million)

due to the completion of a number of operating

lease contracts for mobile plant.

Return on capital employed

(‘ROCE’) in 2025

reduced to 5.7% (2024: 7.5%) reflecting a

decrease in adjusted operating profit and an

increase in the capital base, as the Group

approached the conclusion of its organic

investment programme.

Capital allocation

Our capital allocation framework principles

remain consistent with that laid out previously,

with the Group focused on 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 and operations.

@ Secondly, we are focused on paying an

ordinary dividend, with targeted cover of

approximately 2 times underlying earnings

through the cycle.

@ Thereafter, we deploy capital for in-organic

growth or return surplus capital to

shareholders in 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 debt

Adjusted EBITDA

excluding the impact of

IFRS16, through the cycle.

Dividend

The Board has recommended a final dividend

of 1.5 pence per share (2024: 2.5 pence), for

payment on 29 May 2026 to shareholders on

the register on 8 May 2026. This will bring the

full year dividend to 3.0 pence (2024: 4.0 pence),

representing a payout of 53% of adjusted basic

earnings per share.

Pensions

At 31 December 2025, the defined benefit

pension scheme (the ‘Scheme’) was in an

actuarial accounting surplus position of

£6.0million (2024: surplus of £7.8 million).

Applying the valuation principles set out in

IAS19, at the year end the Scheme had

assetlevels of £322.9 million (31 December

2024: £330.9 million) against scheme

liabilities of £316.9 million (31December 2024:

£323.1 million).

On 20 December 2022, the Scheme completed

a full buy-in transaction with a specialist third

party provider, which represented a significant

step in the Group’s continuing strategy of

de-risking its pensions exposure. This

transaction, which involved no initial cash

payment by the Company, completed during

the 2024 financial year. Together with the

partial buy-in transaction completed in 2020,

this insures the vast majority of the Group’s

defined benefit liabilities.

In light of the fact that the pension scheme was

in a net surplus position after the full buy-in, the

Trustees and the Group agreed that the Group

would suspend further contributions with effect

from 1 March 2024.

Cash flow and net debt

continued

Table 3: Cash flow (non-statutory)

2025

£m

2024

£m

Change

£m

Adjusted EBITDA

71.0 79.4 (8.4)

Adjusted change in working capital

(14 .1) (4.5) (9.6)

Net interest (10.7) (8.6) (2.1)

Tax 1.4 (0.5) 1.9

Other

(12.6) (9.6) (3.0)

Adjusted operating cash flow

35.0 56.1 (21.1)

Cash conversion

49% 71% (22ppts)

Total capex (44.8) (45.2) 0.4

Adjusted free cash flow

(9.8) 10.9 (20.7)

2 Other includes operating lease payments in all years and emission allowance purchases in 2025.

1 Alternative Performance Measures are described in Note 3 to the consolidated financial statements.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Group Financial Review continued

Climate change and TCFD

As a long-term, energy-intensive business, a

commitment to environmental sustainability

and social progress is central to our purpose.

In2022 we launched the Group’s ESG 2030

Strategy and remain committed to this

approach. This strategy provides the

frameworkfor actions across three key areas:

@ Addressing Climate Change.

@ Manufacturing Materials for Life.

@ Improving Lives.

At the same time, we have identified material

transition and physical risks over the medium

tolong term associated with climate change

and considered the impacts of these on the

financial performance and position of the

Group, through our viability scenario

assessment, our impairment testing and

assessment of the useful economic lives of our

assets. We have also assessed the resilience of

our business model as part of our strategic

planning process. The outputs from these

activities are detailed inour Task Force on

Climate-related Financial Disclosures (‘TCFD’)

report contained in the 2025 Annual Report.

The Group remains committed to increasing

thetransparency of reporting around climate

impacts, risks and opportunities. This year we

continued to enhance our disclosure to ensure

full compliance with the recommendations

ofthe TCFD and those of Climate-related

Financial Disclosure (‘CFD’).

Related party transactions

Related party transactions are disclosed in

Note30 to the consolidated financial statements.

During the current and prior year there have

been no material related party transactions.

Subsequent events

Except for the proposed ordinary dividend,

nofurther subsequent events requiring either

disclosure or adjustment 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 the financial statements.

In arriving at their conclusion, the Directors

have given due consideration to whether the

funding and liquidity resources 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 going concern basis in

preparing the financial statements. This is

based on an expectation that the Company

and the Group will have adequate resources

tocontinue in operational existence for at

least12months from the date of signing

theseaccounts.

Further information is provided in Note 2 of

thefinancial statements.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Section 172(1) Statement

The following pages 34 to 38

seek to inform all of our

stakeholders and help them

assess how our Directors have

performed their duty under

Section 172(1) of the

Companies Act 2006.

This Statement incorporates information from

other areas of the Annual Report to avoid

unnecessary duplication.

The Board of Directors confirms that, during the

year under review, it has acted in good faith to

promote the long-term success of the Company

for the benefit of its members as a whole, whilst

having due regard to the factors set out in Section

172(1)(a) to (f) of the Companies Act 2006.

Each Director carefully considered the outcomes

of key decisions for Ibstock’s stakeholders as part

of their duty to act in the way that they consider

would be most likely to promote the success of

the Company. This results in an approach

whereby decisions are made that result in

consistently high standards of business conduct

and the success of Ibstock in the long term.

Examples of matters discussed in the year by

the Board and their impact on our stakeholders

are included in the table to the right and

discussed throughout the Strategic Report and

the Governance Report. The table also identifies

where in the Annual Report information on the

issues, factors and stakeholders the Board has

considered in respect of Section 172(1) can

befound.

Section 172(1) factor Where to find out more Page

(a) The likely consequences of any decisions in the long term.

During the year, the Board continued to ensure that the Group’s strategy remained appropriate to deliver the long-term

success of the Company, and oversaw its execution by management. The Board carefully evaluated the likely consequences

of its decisions, challenging management where necessary to ensure that the impact of any decisions over the long term

would be of benefit to the Company. This manifested itself through the decision taken by the Board in November 2025 to

dispose of the Roofing business and certain other assets to improve the balance sheet strength of the Company.

Chair’s Statement 8

Chief Executive Officer’s Statement 11

Market and industry overview 15

Our business model 19

Our strategy 20

Key performance indicators 24

Operating review 26

Principal risks and uncertainties 48

Board leadership and company purpose 63

(b) The interests of the Company’s employees.

The Board remains committed to supporting the Company’s culture and is focused on the impact of its decisions on all

employees. The decision to consolidate the Gatwick and Stowmarket sites into the Laybrook specials unit, whilst resulting

in a number of redundancies, will result in a safer and more automated technology and operating environment that will

improve working conditions for ouremployees in the future.

Our business model 19

Our strategy 20

Sustainability 39

Board leadership and company purpose 63

Sustainability Committee Report 81

Due to the continued market conditions, the Board made the decision to mothball the Ellistown factory and devised a detailed

customer communications plan to ensure that there was real clarity around the process and resulting impacts on existing

product lines to ensure that appropriate stock for customers and replica products could be produced at other factories.

Market and industry overview 15

Our business model 19

Our strategy 20

Sustainability 39

Board leadership and company purpose 63

(d) The impact of the Company’s operations on the community and environment.

The Board and Sustainability Committee have supported and are driving Ibstock’s ambition to be sector leading in its

approach to sustainability issues and approved the ESG 2030 Strategy to maintain this position through to 2030, aswell

as a commitment to be a net zero business (Scope 1 and 2) by 2040. Through the work of the Sustainability Committee,

the Board has overseen good progress towards our sustainability targets, with an agreed focus on three core areas:

climate change; innovation; and skills development.

Our strategy 20

Sustainability 39

Board leadership and company purpose 63

Sustainability Committee Report 81

(e) The desirability of the Company maintaining a reputation for high standards of business conduct.

The Board remains committed to ensuring the business operates with the highest standards of integrity and continually reviews

and tests the compliance arrangements in place. A significant part of the Board’s leadership responsibility isto ensure that the

Company’s purpose, strategy and culture remain aligned, and it recognises that a robust and transparent

culture is a solid

foundation for maintaining the Group’s reputation for high standards of business conduct. Over the course of the year, the Board

has overseen and supported the introduction of a revised and refreshed governance and compliance framework.

Our strategy 20

Board leadership and company purpose 63

Audit Committee Report 83

(f) The need to act fairly between shareholders and the Company.

The Board seeks to ensure that communications are clear, and its actions are in accordance with the Group’s stated

strategic aims to promote the long-term success of the Company. All of our shareholders have the opportunity to engage

with the Board and ask questions at the Company’s Annual General Meeting. When considering the dividend payments

during the year, the Board carefully considered the interests and needs of both institutional and retail shareholders,

ensuring these were carefully balanced prior to making recommendations.

Chair’s Statement 8

Our strategy 20

Board leadership and company purpose 63

Directors’ Report 111

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Ibstock Plc | Annual Report and Accounts 2025

Stakeholder engagement

Individuals or institutions who own shares

directly or indirectly inIbstock Plc

Why they are important

@ Our current and potential investors ensure our

continued access to the capital that enables

us to pursue our strategic objectives.

Link to KPIs

@ Revenue

@ Adjusted EBITDA*

@ Net debt to Adjusted EBITDA*

@ Adjusted ROCE*, Adjusted EPS*

@ Female representation in senior leadership

@ Carbon reduction metric

Refer to KPIs pages 24 to 25

What they tell us matters to them

@ Financial performance and progress

againststrategy.

@ Balance sheet management and approach

tocapital allocation.

@ Business resilience and prospects.

@ Return on investment.

@ Risk management.

@ Sustainability performance and ambitions.

The Board carefully considers

the impact of its decisions on

all stakeholders as part of

Ibstock’s obligations and

statutory duties.

Our key stakeholders are identified through

ongoing review of the groups that are essential

to delivering our strategy and ensuring the

Company’s sustained success. When making

decisions, the Board takes into account the

interests, priorities and perspectives of each

stakeholder group, recognising that these may

occasionally be in conflict. While the Board

engages directly with certain stakeholders,

mostengagement is carried out across multiple

levels and teams within the business. The Chairs

of the Board and its respective Committees

arealso available, upon request, to engage

withstakeholders within their respective areas

of responsibility.

Insights and feedback gathered through

engagement activities below Board level are

reported to the Board and its Committees,

supporting informed decision-making across

both governance and operational matters.

Strong

communication

The Board considers that our stakeholder

engagement mechanisms remain effective.

In 2025, the Executive Committee (the ‘ExCo’)

and the Board received qualitative reports

highlighting trends and emerging issues relevant

to each stakeholder group. This enhanced

visibility enabled the ExCo and the Board to

embed stakeholder considerations more readily

into their decision-making processes.

Find out more

Section 172(1) Statement page 34

Governance Report pages 55 to 114

Board activities during 2025 pages 66 to69

How we engage at Board level

@ Members of the Board, including the CEO,

meet with shareholders and analysts as part

of the regular annual cycle.

@ The Board receives structured feedback after

each market announcement from our brokers.

How we engage across the Company

@ Investor roadshows.

@ Site visits to key investment projects,

e.g.Atlas.

@ Results presentations.

@ Annual General Meeting.

@ One-to-one meetings and calls with

investorsand brokers.

@ Chair and Board member meetings

onrequest.

What Ibstock offers them

@ We pay ordinary dividends with a targeted

cover of approx 2x underlying earnings

through the cycle. This policy is supported

bybusinesses with structurally high margins

and strong cash generation and a strategy

that provides a strong platform for future

growth and value creation.

@ Comprehensive and compliant

sustainabilitydisclosures.

Our investors

Investor event at our new Atlas factory

Key to strategy

Sustain

Innovate

Grow

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Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Outcomes from engagement

@ The Board considered shareholder views

when deciding on the level of interim and

final dividends.

Priorities for 2026

@ Strong and structured communication

andengagement.

@ Delivery of strategic projects and initiatives.

@ Execution of business plans and balance

sheet management.

@ Board engagement with investors.

@ Site visits to key investment projects,

e.g.Nostell Horizon.

Link to strategy

Stakeholder engagement continued

Our investors continued Our customers

The businesses and organisations that buy

ourproducts

Why they are important

@ Customers play a crucial role in shaping our

growth, informing our strategic priorities

anddriving innovation across the Group.

@ Long-term, collaborative and mutually

beneficial customer relationships are

fundamental to the sustainability and

successof our business model.

Link to KPIs

@ Revenue

@ Carbon reduction metric

@ Share of revenue from new and more

sustainable products

Refer to KPIs pages 24 to 25

What they tell us matters to them

@ Product availability, reliability of supply and

customer service.

@ Product value, pricing and consistent quality.

@ Product innovation, technical performance

and safety.

@ Strong, transparent and collaborative

relationships.

@ Sustainability credentials and environmental

performance of products.

How we engage at Board level

@ The Board receives regular updates on

customer relationships, customer strategy

and key account priorities, including

performance against customer satisfaction

and service metrics.

@ Customer feedback, together with market

and sector insights, is incorporated into Board

discussions and informs strategic decision-

making, including capital investment, product

development and innovation priorities.

@ In 2025, the Board reviewed an updated

materiality assessment, providing a clear

viewof the sustainability topics of greatest

importance to customers and how these

arereflected in the Group’s strategy

anddisclosures.

How we engage across the Company

@ Dedicated account management teams.

@ Central customer service function.

@ Design and specification advisers supporting

early stage project engagement.

@ Structured customer feedback mechanisms,

including detailed customer surveys.

@ Quality and complaints management teams.

@ Digital channels and social media

engagement.

What Ibstock offers customers

@ A strong commitment to developing a deep

understanding of customers’ priorities,

enabling us to anticipate needs and deliver

relevant solutions.

@ An unrivalled choice of products across our

clay brick portfolio, offering customers the

widest possible range of aesthetic, technical

and performance options.

@ As a full-range supplier, our Concrete

businesses provide customers with a

comprehensive product offering to support

informed and efficient purchasing decisions.

@ Enhanced product information, technical

expertise and support, including the provision

of customer CPD programmes.

Outcomes from engagement

@ Continued evolution of our Sales team

structures and capability development,

creating a more aligned and customer-

focused approach across the Group.

@ Active management of production capacity

to support continuity of supply and maintain

flexibility to respond efficiently as market

demand recovers.

Priorities for 2026

@ Developing strategic supply plans with

keycustomers and further strengthening

ourspecification and technical

advisorycapability.

@ Increasing the frequency and depth of

customer engagement to ensure strategic

alignment, drive category innovation and

support long-term partnerships.

@ Advancing sustainability improvements

andaccelerating existing product

innovationto meet customers’ short-

andmedium-term requirements.

Link to strategy

Product: Milburn Ashen Brown

Project: Keepmoat Homes

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Stakeholder engagement continued

Our employees Our communities

Colleagues who work in our business

Why they are important

@ Our talented and engaged employees

continue to play a vital role in the success of

Ibstock. We not only have a legal obligation

to look after our employees, but also an

ethical obligation to ensure that we create

anenvironment where everyone can belong

and be at their best.

Link to KPIs

@ TIFR

@ Employee engagement

@ Female representation in senior leadership

Refer to KPIs pages 24 to 25

What they tell us matters to them

@ Fair and consistent pay and benefits.

@ Culture that cares and is inclusive.

@ Development for growth and wellbeing.

How we engage at Board level

@ The Listening Post is our formal mechanism

for workforce engagement and sharing

employee views with the Board. Board

members attend the sessions on a

rotationalbasis.

@ Regular direct progress reports on people and

culture from the People team. 2025 also saw

a refreshed employee opinion survey

presented to the Board, with an 82%

employee response rate.

@ Board members visit our sites and senior

management join meetings for specific

items,e.g. our Board Strategy Day and

through Board and Sustainability Committee

site visits.

How we engage across the Company

@ The development and deployment of safe

and reliable production approach.

@ The Week – a weekly video update from an

ExCo member posted on our MyIbstock

intranet, displayed on digital screens in

common areas at all sites and emailed to

allemployees.

@ Ibstock Informed presentations and live open

Q&A panel sessions.

@ MyIbstock news and employee blogs.

@ Safe Start conversations.

@ Employees are encouraged to visit other sites

and share best practice.

What Ibstock offers them

@ Alongside the focus on a safe and healthy

working environment, investment in ongoing

training, development and career progression.

@ Attractive employee proposition, including

amoney-saving benefits platform.

Outcomes from engagement

@ Board oversight of employee pay and reward

philosophy, e.g. pension provision.

@ Senior leadership gender and ethnicity

diversity targets supported by the Board.

Priorities for 2026

@ Refocus the organisation in service of

performance, customer experience and

delivery of results against strategic ambitions.

@ Ongoing embedding of talent and skills

programmes, including opportunities for

succession and leadership development.

@ Continued focus on embedding a culture

ofwellbeing, belonging and fostering a

diverse workforce.

@ Implementation of engagement

surveyactions.

@ Introduction of new Group Reward Strategy.

Link to strategy

The people who live and work in the

local communities around our sites

and operations

Why they are important

@ Our activities can have a lasting impact

onthe communities in which we operate

– westrive to leave a positive legacy.

Link to KPIs

@ Carbon reduction metric

@ Earn and Learn metric

Refer to KPIs pages 24 to 25

What they tell us matters to them

@ Localised environmental impacts.

@ Employment, education and training.

@ Equal opportunities.

@ Financial support for local community activity.

How we engage at Board level

@ The members of the Sustainability

Committee receive a regular summary of

issues or points of interest from Ibstock’s

community stakeholders – including input

from the Estates, Early Careers and Social

Impact teams, Community Panel and Factory

Managers.

@ Through MyIbstock, significant content is

shared by employees on our community work

and charitable activities. This system enables

the Board to engage with and monitor activity.

How we engage across the Company

@ Factory Managers link with local communities.

@ Estates team liaison with local authorities and

interest groups.

Employees at our Chesterton Factory

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@ Early Careers team and wider cross-functional

representatives engaging with industry,

education and skills sector.

@ Social Housing/Social Impact teams working

in partnership with housing associations and

their residents.

@ MyIbstock community stories.

Outcomes from engagement

@ The Board, through the Sustainability

Committee, has approved a new approach

tosocial impact.

Priorities for 2026

@ Continued Early Careers and apprenticeship

focus.

@ Evaluation of Ibstock Skills Academy driving

sector construction skills.

@ Promote STEM in construction through

colleague volunteering.

@ Development of Social Value reporting.

Link to strategy

Our communities continued

Pension fund members

andTrustees

Government bodies and agencies

Why they are important

@ Understanding and adapting to changing

laws and regulations is essential to ensure

that Ibstock not only remains compliant

withrequirements, but can also benefit

frompotential opportunities. 2025 has

seenasignificant increase in the number

ofGovernment consultations on

environmental regulation and taxation.

Link to KPIs

@ TIFR

@ Carbon reduction metric

Refer to KPIs pages 24 to 25

What they tell us matters to them

@ Workplace health and safety.

@ Energy and carbon emissions.

@ Legal and regulatory compliance.

How we engage at Board level

@ Updates from the Group Company Secretary

at each Board meeting.

@ Reports and updates from our external

advisers, including quarterly horizon scanning

and trade body insights.

@ Direct liaison as required.

How we engage across the Company

@ Industry bodies, forums and conferences.

@ Direct liaison with Government and

regulatory bodies where pertinent.

Government and regulators

What Ibstock offers them

@ Through our involvement with industry

bodies, we seek to support the development

and assessment of laws and regulations

within the construction sector.

@ Support for the Government policy for

growthand increasing housing (numbers)

and new towns.

@ Site visits and industry insight to build

understanding of Government policy

development impact on UK manufacturing.

Outcomes from engagement

@ Over the course of the year, the Board

engaged with subject matter experts and

undertook training on evolving legislative,

regulatory and best practice requirements,

considering the resulting effects on strategic

direction and operational performance.

Priorities for 2026

@ More regular and formalised training sessions

on hot topics.

@ Improved reporting at Board level on

keyissues and risks associated with

non-compliance.

Link to strategy

The members and Trustees of the Ibstock

Defined Benefit pension schemes

Why they are important

@ As part of our culture of care, we are

committed to continue to look after our

employees once they have retired.

Link to KPIs

Refer to KPIs pages 24 to 25

What they tell us matters to them

@ Pension scheme member interests.

How we engage at Board level

@ Regular reports from the Finance team.

How we engage across the Company

@ Direct liaison with Trustees.

@ Financial oversight.

What Ibstock offers them

@ Confidence in the long-term security

oftheirpension.

Outcomes from engagement

@ Clear understanding of the financial

positionof the Company and the

objectivesof the Trustees.

Priorities for 2026

@ Regular engagement with the

SchemeTrustees.

Link to strategy

N/A

Stakeholder engagement continued

Community activity

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38Ibstock Plc | Annual Report and Accounts 2025

Sustainability

Our approach to sustainability

is guided by an understanding

of the most important risks

and opportunities for Ibstock

and all our stakeholders.

Our ESG 2030 Strategy, launched in 2022,

outlines three key areas that are integrated

across our wider business strategy pillars:

@ Sustain – Addressing Climate Change

@ Innovate – Manufacturing Materials for Life

@ Grow – Improving Lives

Sustainability is crucial to both the short- and

long-term success of Ibstock so that we are

ableto create shareholder value and grow as

atrusted long-term business. Our strategic

objectives go hand in hand with these

sustainability priorities and the management

ofour risks and opportunities.

Strength through

sustainability

How we govern sustainability

The oversight of sustainability matters is critical.

It not only allows the Board to understand more

holistically the impact of its decisions on key

stakeholders and the environment, but also

ensures it is kept aware of any significant

changes in the market. This includes the

identification of emerging trends and risks,

which in turn can be factored into its strategy

discussions. Sustainability is overseen principally

by the Board, the Sustainability Committee and

the ExCo.

Claire Hawkings is the designated Non-

Executive Director with overall accountability

forsustainability matters. Claire oversees the

review and performance of this work as Chair

ofthe Sustainability Committee.

A full report of the activities of the Sustainability

Committee can be found on pages 81 to 82.

The governance of our climate-related risks and

opportunities are detailed in our full Task Force

on Climate-related Financial Disclosures

(‘TCFD’) report provided on pages 178 to 191.

Further information on our sustainability

governance and reporting can be found in the

separate Sustainability Report, which is

available on our website (www.ibstock.co.uk).

Strategic pillar

ESG 2030 Strategy

Sustain

Addressing Climate Change

Strategic pillar

ESG 2030 Strategy

Manufacturing Materials for Life

Innovate

Strategic pillar

ESG 2030 Strategy

Improving Lives

Grow

Integrated approach

Our strategy originally established a set of

targets and milestones. Whilst many of these

milestones have now been achieved (see our

2024 Sustainability Report), the progress we

have made in integrating the strategic priorities

into the business, taking a more materiality-

focused approach, sets us up for success as we

move towards 2030. Our key sustainability data

is still measured and managed and can be

viewed at the end of this report, from page 174.

ESG 2030 STRATEGY

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Sustainability continued

Materiality

We believe that balancing internal and external

viewpoints plays an important part in defining

and managing sustainability issues that are

significant to our business and our stakeholders.

To ensure that focus remains on the most

important topics, we conducted a single

materiality assessment in 2025, with financial

materiality considered alongside stakeholder

expectations. The purpose of the assessment

was to:

@ prioritise efforts, resources and targets

around our sustainability work;

@ involve our stakeholders to understand their

concerns and priorities; and

@ identify any new or enhanced risks (financial,

reputational) or opportunities (value creation).

The process engaged stakeholders through

aseries of interviews, desktop reviews and

research on publicly available data points to

understand priority topics and concerns.

Stakeholders included customers, investors,

employees, peers and Ibstock leadership as well

as our technical teams. We also reviewed

legislative and reporting requirements, both

current and those likely to impact the business

in the next three years.

As a result of this process several material issues

are no longer specifically represented, but are

encompassed in other topics. For example,

dematerialisation is no longer a stand-alone

issue as it is well represented within product

innovation and circular economy.

Our materiality matrix

Significant Highly significant

Importance to Ibstock

Importance to stakeholders

The outputs align closely with our existing ESG

2030 Strategy framework, confirming that our

strategy remains on course to tackle those areas

identified as being of most importance to both

Ibstock and our stakeholders. Health, safety

and wellbeing remain a business-critical issue,

consistent with our business risks and priorities,

which are fully embedded into our governance

and business processes.

Carbon and energy use are considered the most

significant and financially material sustainability

issue for the business and for our stakeholders.

This is reflected by our principal climate change

risk and TCFD scenario analysis of risk.

Product innovation, identified through the

materiality process as a key opportunity,

focuses on developing new products and

solutions to meet evolving customer needs,

while also improving our existing product range.

Product safety has been incorporated into this

topic as a specific priority, with the golden thread

of information and accountability required by

the Building Safety Act 2022 a significant focus

for the entire construction sector.

Skills, encompassing talent retention and

attraction, employee reward and the

importance of sector-specific skills such as

bricklaying – which are critical to our business

success – was ranked higher than in previous

reviews. This reflects the growing skills

challenges facing the UK construction sector.

Human rights also moved up in significance

through the assessment with a stronger focus

from customers on understanding supply chain

risk and resilience. Air quality emerged as an

issue through the process with implementation

of tighter UK regulations expected in the

coming years. Water and waste remain

significant but rank below other issues as their

financial impact on the business is relatively low.

In light of expected market conditions and the

findings of the materiality process, we will be

prioritising our resources and focus in 2026 on

three key issues, supported by our existing

targets for 2030:

@ carbon reduction and energy use;

@ product development; and

@ skills.

Carbon

& energy

Health, safety

& wellbeing

Product

innovation

Biodiversity

Human

rights

Circular

economy

Skills

Air

quality

Social

impact

Waste

Equity, diversity

& inclusion

Water

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Reducing our climate impact as well as

managing our risks and opportunities

linked to climate change.

Developing new and existing products to be

fitfor the future needs of our customers.

Working with our colleagues, communities and

customers to ensure we have the skills required

for our sector to thrive.

Headline 2030 target Headline 2030 target Headline 2030 target

40% Scope 1 and 2 carbon reduction (against

2019 baseline)

20% of sales turnover from new and

sustainable products

10% of colleagues in Earn and Learn positions

2025 performance 2025 performance 2025 performance

41%

reduction in Scope 1 and 2 carbon 25% of sales turnover from new and

sustainable products

7.2% of colleagues in Earn and Learn positions

Approach to material issues Approach to material issues Approach to material issues

@ Carbon transition model

@ Energy management system (ISO 50001)

@ Environmental management system

(ISO14001)

@ Biodiversity

@ Air quality

@ Water usage

@ New product development and existing

product evolution

@ Resource use and circularity research

anddevelopment

@ Environmental management system

(ISO14001)

@ Waste

@ Health and safety management process

@ Skills development programmes

@ Equity, diversity and inclusion programmes

@ Human rights review

@ Social impact strategy with a flagship

bricklaying academy pilot

1 Of the 41% reduction, 25% is permanent carbon reduction on 2019 baseline, 16% is temporary production volume decrease which we forecast to reverse by 2030.

Sustainability continued

Addressing Climate Change

Manufacturing Materials for Life

Improving Lives

Targets, performance and management of our material issues

Sustainability highlights in 2025

United Nations Sustainable Development Goals (‘UNSDGs’)

Our priorities align with the UNSDGs focusing on Goal 13 for Climate Action, with carbon ourmost material

sustainability issue and, alsoGoal 12 for Responsible Consumption andProduction, with product innovation and

circularity also significant opportunities for the business. Elements of our strategy contribute toseveral other of the

UNSDGs as indicated onsubsequent pages of this report.

@ Production of our lowest carbon bricks at Atlas.

@ Shortlisted for the Government’s Hydrogen

Allocation Round 2 (‘HAR2’) for on-site green

hydrogen production at our Atlas Pathfinder

factory in the West Midlands.

@ Nostell Horizon ceramics façade factory

commissioning commenced on time; now the

UK’s most advanced ceramic façade facility

– producing new IBricks and innovative new

solutions like FastWall.

@ More than halfway to achieving our 40%

Scope 1 and 2 carbon reduction target

by2030.

@ Calcined Clay project reached commercialisation

phase with products that will support industry

decarbonisation solutions.

@ Cement reduction roadmap established as

part of our product evolution and Scope 3

reduction plans.

@ Over 80% of spend with suppliers covered by

the new Ibstock Supplier Commitments

ensuring our supply chain adheres to

minimum standards of a responsible business.

@ Gold membership retained with the 5% Club

for our commitment to Earn and Learn

demonstrating our investment in our future

talent and succession planning.

@ Increased the number of Mental Health Allies

active across the business to 85.

@ Over 440,000 bricks donated to schools,

colleges and community projects to support

skills development in bricklaying as well as

heritage projects in local communities.

@ Launched our first Ibstock Academy pilot for

bricklaying students with Walsall College.

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Sustainability continued

Carbon reduction

As an energy-intensive manufacturer, Scope 1

carbon emissions make up the largest

proportion of our carbon impact, from natural

gas and the process emissions from firing clay.

Our main focus is therefore to deliver our

ambitious target ofa 40% reduction in

absolute carbon (Scope 1 and 2) by 2030.

Performance

2025 was a lower production year, which is

reflected in our absolute Scope 1 and 2 carbon

performing at 41% reduction against our 2019

baseline. 25% of this is permanent carbon

reduction on 2019 baseline, 16% is temporary

production volume decrease which we forecast

to reverse by 2030. The Scope 1 and 2 intensity

metric tonnes CO

/tonne production is 0.138,

achieving a 13% reduction against 2019. From

2026 we will report a carbon per brick metric

which will provide greater clarity on our Scope 1

reduction progress.

Operational efficiency continues to be

implemented across the estate alongside

anumber of projects to electrify systems,

including replacing the diesel pump at Leicester

Quarry with an electric model saving 121 tonnes

in six months from deployment. Our Safe

Reliable Production System programme,

launching at our pilot factory in Aldridge from

January 2026, is designed to support carbon

reduction through its principal aims of

improving quality, efficiency and reliability.

Transformative projects continue to be reviewed,

with commercial viability a key constraint in

the current market. Our HAR2 application for

replacing 55% of natural gas with green

hydrogen at our Atlas factory was successfully

shortlisted by the Government in2025.

Addressing Climate Change

We are reducing our climate

impact and managing our

risks and opportunities

linked to climate change.

Carbon reduction, water

management and improved

biodiversity are all key to

our commitment to address

climate change.

2030 target

40%

reduction in absolute carbon

emissions (Scope 1 and 2) against

2019 baseline

We continue to build a more granular picture

ofour Scope 3 impact. In 2025 we focused

oncement, which contributes significantly to

our purchased goods and services emissions

category. We improved our data, moving from

spend to activity-based methodology and

developed a cement reduction roadmap to

support reduction of these emissions.

Priorities in 2026

In 2026, we will continue our focus on

operational efficiency, reliability and quality

andimproved basics to support our estate

working at optimal efficiency, thereby

reducingcost and carbon.

As the market recovers and production volumes

increase, in the short term we forecast that our

absolute carbon will increase and our intensity

metric will come down. The investment to

achieve our carbon reduction is embedded in

our financial forecast to align with our carbon

reduction target for 2030.

Continued engagement with our supply chain

on Scope 3 carbon reduction and the

implementation of our cement reduction

roadmap will be prioritised in 2026.

Water and biodiversity

Responsible management of water and

biodiversity are both key components of

addressing climate change by supporting

nature and the balance that ecosystems

requireto thrive.

Water used in our manufacturing process

comes from a combination of mains water,

borehole extraction, quarry water and on-site

rainwater harvesting systems. In 2025, we

moved away from our water intensity metric as

the variables in the water content of production

materials meant measurement was not

providing an accurate reflection of water use

behaviour. Mains water use in m

during 2025

decreased by 18% against the 2019 baseline

an increase compared to 2024 due to higher

production volumes and prolonged dry spells.

Management of biodiversity at our sites is

mostsignificant in our quarries where extraction

of raw materials sees land-use change and

nature can be disrupted and restored over time.

Our quarrying activity is covered by planning

regulation and consents where the conditions

for restoration include biodiversity enhancement.

In 2025, we completed the baselining of our

biodiversity data across all sites, feeding into

ourbiodiversity management tool, which

willfacilitate the development of action

plansfor further sites in 2026.

Alignment to climate reporting

requirements

The TCFD was established by the Financial

Stability Board in 2015 and published its final

report in June 2017. The report set out 11

recommended disclosures under four pillars

topromote better disclosure. Pursuant to the

Financial Conduct Authority (‘FCA’) Listing

Rule6.6.6R (8) and the requirements of the

Companies Act 2006 as amended by the

Companies (Strategic Report) (Climate-related

Financial Disclosure) Regulations 2022, the

Board of Directors confirms the following:

a) Ibstock has made disclosures that are

compliant with the four recommendations

and 11 recommended disclosures set out

inSection C of the TCFD Final Report.

b) These disclosures can be found within this

Annual Report in the Sustainability and

Climate Change Reporting section on

pages174 to 191.

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Our Carbon Transition Plan

We are continuing to deliver carbon reduction

against our 2030 target and through the

evolution of our Carbon Transition Plan in line

with the recommendations published by the

Transition Plan Task Force. We are reviewing the

guiding principles in the ongoing development

of our plan, which sets out our journey towards

being a net zero business.

Action to date

Real decarbonisation performance in 2025 is

c.25% reduction in Scope 1 and 2 carbon

through projects including:

@ 94% electricity purchasing backed by

Renewable Energy Guarantees of Origin

(‘REGO’) since 2021.

@ Energy Management System (ISO 50001)

certification across the manufacturing estate

with energy targets and site action plans.

@ 27% of mobile plant being hybrid or electric.

@ Over £325 million investment in the last eight

years driving a lower cost, more efficient

estate and supporting carbon reduction:

@ New lower carbon Atlas brick factory in

final commissioning and shortlisted for

on-site hydrogen by the Government.

@ New ceramics façades factory in Nostell

began commissioning in 2025.

@ New dryers at our Aldridge site reducing

gas by recycling heat from the kiln.

@ Kiln upgrades improving thermal efficiency

at Parkhouse reducing gas consumption.

@ Trials for firing bricks with syngas and hydrogen.

@ Product adaptation reducing embodied carbon

through lower gas consumption, lower process

emissions and lighter product transportation.

@ Engagement with key supply chain partners

in high-carbon areas such as cement, and raw

material replacements.

@ Lifecycle analysis incorporated into product

design to drive lower embodied carbon products.

Next steps (to 2030)

@ Continued focus on operational efficiency

improvements by delivering site energy and

carbon action plans.

@ Phasing out of diesel across the

manufacturing estate (including mobile plant

where possible).

@ Securing funding with the Government for

on-site hydrogen utilisation at Atlas and

analysis for further site applications.

@ Continued investment in material science

forproduct development.

@ Increasing recycled content in products.

@ Enhancing our Scope 3 emissions data by

shifting from a spend-based to a more

accurate activity-based methodology.

Sustainability continued

Addressing Climate Change continued

Carbon transition priorities for Scope 1 and 2

2019 baseline 2040

Operational efficiency

@ Production efficiencies

@ Capital investment

@ Estate renewal

Renewable energy

@ Renewable energy

supply

@ On-site renewable

installations

Diesel elimination

@ Electrification:

@ quarry pumps

@ forklift fleet

@ car fleet

@ Switch to HVO

Product adaption

(process emissions)

@ Alternative raw

materials

@ Recycled content

@ Product design

@ Product diversification

Carbon capture

(process emissions)

@ On-site emissions

stream capture

@ Direct air capture

Removals through

offsetting

(unavoidable emissions)

@ Offsetting investments

prioritising carbon removals

Alternatives to natural gas

@ On-site hydrogen production

@ On-site synthetic gas

production

@ Hydrogen pipeline supply

@ Biogas

-17% -8%

-1%

-42% -11% -15% -6%

Achieving 100% reduction

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Sustainability continued

Addressing Climate Change

continued

Next steps (to 2030) continued

@ Broadening the scope of our supply chain

engagement beyond high-impact materials

and preferentially partnering with companies

decarbonising their operations.

Future steps and scale-up

@ Continued improvements to energy and

operational efficiency with full sub-metering

and automation.

@ Increased usage of on-site renewables and/or

direct purchase.

@ Roll out of hydrogen and/or biogas across the

Clay division estate (on-site and/or pipeline).

@ Continued product innovation to utilise

lower-carbon methods and materials to

reduce embodied carbon linked to our KPI

fornew and sustainable products.

@ Continued supplier engagement for Scope 3

reduction.

@ Carbon capture research for unavoidable

emissions.

@ Continued advocacy and engagement with

Government and industry bodies to support

decarbonisation for high energy intensive

processes that require industrial gas.

Challenges, uncertainties

and dependencies

@ Industrial hydrogen supply and associated

pipeline is not guaranteed.

@ Future of regulation on embodied carbon

ofbuildings is uncertain.

@ Limited availability of larger-scale electric

machinery, in particular for quarry vehicles.

@ Grid connectivity for electrification, where

applicable to our processes, can be limiting.

@ Technology readiness levels for lower-carbon

manufacturing are not yet proven at scale,

including for some green fuels and

carboncapture.

@ Some suppliers do not yet have carbon

reduction targets and carbon data availability

and accuracy is poor in certain categories.

Engagement with industry

and Government

We are active participants of the Future Homes

Hub, at technical and CEO level, helping us to

work with industry to understand and shape

thefuture for new homes. We are involved in

national and regional alternative gas industry

events and forums to raise the profile of the

demand for green hydrogen and biogas.

Weagain welcomed ministers, MPs and civil

servants to a number of our sites throughout

2025 to raise the profile of the opportunities

and challenges facing decarbonisation in the

construction products sector.

Alignment with financial planning

Calculating the cost of our transition to net

zerois complex, with assumptions based on

ouruncertainties and dependencies. While

operational and capital expenditure elements

of the transition are embedded into our

business strategy, and planning and transitional

risks – for example, linked to carbon price and

regulation – can be modelled, the financial

impacts of value chain risk and opportunity and

the uncertainties associated with technology

readiness require further development.

Offsetting

Whilst emissions reductions are our priority,

there will be a requirement to neutralise residual

emissions across Scopes 1 and 3 as we approach

our net zero targets. We have, at a small scale,

begun to explore procurement of certified

high-quality carbon offsets to achieve carbon

neutral certification for a single range of our

new Atlas products – the Pathfinder range.

Thislearning experience will feed into a

longer-term strategy for offsetting residual

emissions in the future.

2030 target

40%

Absolute carbon reduction

Scope 1 and 2

2040 target

Net Zero

Carbon operations Scope 1 and 2

2050 target

Net Zero

Scope 1, 2 and 3

1 Scope 2 uses market-based methodology (which sees our

purchased electricity on a renewable tariff reported as zero carbon).

Just 6% of our electricity comes from non-renewable sources.

Scope 1 57.8%

Scope 2

0.2%

Scope 3 42.0%

Carbon emissions breakdown by Scope %

42.0%

0.2%

57.8%

Customer exhibition

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Sustainability continued

Product innovation

Our products are resilient, durable, safe and

lastseveral lifetimes, making them an excellent

choice for building sustainable communities.

Weknow we can still make improvements –

bybuilding on the inherent attributes of our

clayand concrete products, weare committed

to manufacturing even more sustainable

products and solutions to meet evolving

customer needs and markets.

Our performance remained strong in 2025,

with25% of sales from new and sustainable

products keeping us above our 20% target

for2030. This KPI includes NPD, but also

product evolution to reflect the adaptation and

improvements to our existing product range

with enhanced sustainability attributes.

Maintaining this level of product development

isenabled by the introduction of our new,

lower-carbon Atlas products, as well as the

continued work on concrete design mix with

lower-carbon cementitious replacements.

We continue to inform our NPD decisions using

Lifecycle Analysis (‘LCA’) data. The LCA feeds

into an Environmental Product Declaration

(‘EPD’) providing robust data on the embodied

carbon in each product. We provide EPD data,

verified by a third party, for a number of leading

products, which enables our customers and

thebusiness to makemore accurate and

informed decisions in their building design

andspecification.

Manufacturing Materials for Life

Whilst we are proud our

products are built to last for

hundreds of years, we are

continuously improving our

existing range of core

products, as well as

developing new products

and solutions for the

evolving needs of the

construction sector.

2030 target

20%

of sales revenue from new andmore

sustainable products

Resource use and circularity

Reduction in the use of materials in our

products presents a key opportunity for our

customers as they seek to reduce the embodied

carbon of their developments (homes and

infrastructure). Reduction in product weight can

offer a number of customer benefits, including

lighter and/or fewer transport loads, improved

manual handling and reduced foundation

requirements. The Nostell Horizon ceramics

façades factory is a great example of how

wecan use less material to create the same

desired aesthetic and durability for our

customers – see page 22 for more details.

Our products are long lasting and durable,

withthe expected service life of bricks being

150years. Through this, coupled with their

inherent reusability and recyclability, we are

already supporting several of the key principles

of circularity. Our Research and Development

teams are focused on reduction of virgin

materials and fossil fuel derived materials

inourproducts and prioritising secondary

and recycled content.

The prospect of our Calcined Clay project

represents a long-term growth opportunity

thatstrengthens our position in low-carbon

construction innovation. By drawing on our

high-quality, long-life clay reserves, we have the

capability to support the UK’s first industrial-scale

Calcined Clay facility. Read more on page 23.

Waste management

Over the last three years, we have sent

consistently low quantities of waste to landfill

with only 21 tonnes of general waste being

landfilled from the Ibstock estate in 2025, which

is just 2.1% of our general waste, bringing us

even closer to our zero waste to landfill target.

As part of our ISO 140001 environmental

management system, sites continue to focus

onsegregation of waste to improve diversion of

materials away from landfill and incineration.

We ensure all of the plastic packaging we source

can be recycled after its use. We continue to

build on the minimum 30% recycled content in

our plastic packaging with the majority of our

plastic strapping using 100% recycled content.

Having delivered plastic packaging reduction

initiatives in previous years, including reduction

in the thickness of our plastic shrink wrap and

insome cases removal of plastic wrap, we had

mixed results, and based on customer feedback

have moved to a plastics optimisation approach.

Product protection on site is crucial to maintain

quality and avoid product wastage. We are in

discussions with many of our customers about

how we balance minimising plastic packaging

and ensuring product protection.

Design Week event

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Ibstock Plc | Annual Report and Accounts 2025

Sustainability continued

Safety remains our number one priority

Meaningful progress was made in strengthening

risk controls and safety leadership during 2025.

The TIFR was 36.6, compared with an in-year

target of 28.2. A number of incidents occurred

at sites undergoing commissioning and

transition, where work activity and risk profiles

were elevated.

Looking ahead, safety remains central to our

operating model. A 2030 target to reduce TIFR

by 30% has been set, with delivery underpinned

by strengthened commissioning controls,

enhanced leadership capability and the

integration of safety into the new Safe and

Reliable Production System. The focus is on

translating the progress made in risk reduction

into sustained improvements in outcomes.

We continued our commitment to supporting

mental health with 85 colleagues qualified and

active as Mental Health Allies to provide the

first line of support to their co-workers.

Skills development

Skills development, both in Ibstock and the

wider construction sector, continues to be a key

focus for the business. We continued supporting

the development of our people, retaining Gold

accreditation as part of the 5% Club’s Employer

Audit. With 7.2% of colleagues on formal

learning courses and apprenticeships, this

achievement highlights our commitment to

personal and professional development of our

employees as we aim to achieve our target of

10% by 2030. Our Early Careers initiatives

continue to be the foundation of our skills

succession planning, with 68 apprentices

nowonactive programmes in 2025.

Improving Lives

We are working with our

customers, colleagues and

communities to ensure we

have the skills required for

our sector to thrive. This

includes an internal

workplace culture where

people feel they can belong,

develop and grow.

2030 target

10%

of colleagues in Earn

andLearnpositions

We continued our commitment to support the

next generation of construction talent through

the donation of more than 440,000 bricks to

colleges and community projects, including

support for the existing and future NHBC hubs

across the UK.

As part of our wider social impact strategy,

welaunched the first pilot Ibstock Academy at

Walsall College, dedicated to bricklaying skills.

This initiative creates a platform for developing

talent across the sector while deepening

engagement with customers, communities

andcolleagues.

The Academy provides students with practical,

job-ready training that reflects the pace,

high-quality standards and safety expectations

of construction. As the first building materials

manufacturer to have joined the House Building

Federation’s (‘HBF’) Partner a College programme,

we are taking a leading role in bridging the gap

between education and employment.

The Academy includes industry-delivered

workshops in college training facilities as

wellasarranging student master-classes and

Ibstock site tours to enable understanding

ofour business from our quarries, through

manufacturing to the end products leaving site.

‘Know your brick’ was the theme of the quality

and technical masterclass delivered by Ibstock

colleagues to the students when they attended

the Atlas factory in November 2025.

Engagement and inclusion

We achieved ‘Ones to Watch’ status following

completion of the Best Companies employee

opinion survey with participation at a level

of83%. Results showed a slight decline in

overall engagement at 63%, but with positive

feedback on our wellbeing and mental health

support initiatives across the business.

The level of female representation and ethnic

diversity in our senior leadership group stood

at32% and 15% respectively. This shows

progress in our efforts to embed equity and

inclusion into the culture of the business. Our

target for a third of our apprentice intake to be

female and a third from an ethnic minority is

currently off track, and efforts to reverse this

willbe prioritised in 2026.

All of the above targets support our work

todeepen belonging and inclusion at both

senior and grass roots levels in the business

tomeaningfully increase the diversity of the

workforce for the future. We continue to

collaborate with external networks promoting

inclusion in construction, including BPIC and

theConstruction Inclusion Coalition.

For further diversity data see page 177.

We accelerated our commitment to building

skills from within in 2025, with our highest

number of apprentices, 7.2% of our workforce

in earn-and-learn roles, and Gold 5% Club

accreditation. Our investment in early careers

and inclusive development remains central to

shaping a capable, future-ready Ibstock.

IBSTOCK ACADEMY

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Governance Report Financial Statements Additional Information

46Ibstock Plc | Annual Report and Accounts 2025

Non-Financial and Sustainability Information Statement

Ibstock’s Non-Financial and Sustainability Information Statement can be found below. In compliance

with Sections 414CA and 414CB of the Companies Act 2006, the information listed is incorporated

into this statement by cross-reference to relevant content found elsewhere in this Annual Report.

Requirement Policies Additional information Pages

Environmental

matters

@ ESG 2030 Strategy

@ Sustainable Procurement Policy

Sustainability

Corporate Governance

Statement

39 to 46

Employees @ Health and Safety Policy

Statement

@ Diversity and Inclusion Policy

@ Anti-bullying and

HarassmentPolicy

@ Code of Business Conduct

@ Whistleblowing Policy

Sustainability

Nomination Committee

Report

39 to 46

76 to 80

Human rights @ Modern Slavery Statement

@ Data Protection Policy

Sustainability 39 to 46

Social matters @ ESG 2030 Strategy

andFramework

Sustainability 39 to 46

Anti-corruption

and bribery

@ Anti-bribery and Corruption Policy

@ Competition Law

CompliancePolicy

@ Supplier Commitments

@ Prevention of Fraud Policy

@ Anti-Money Laundering Policy

@ Prevention of Criminal Facilitation

of Tax Evasion Policy

Audit Committee Report 83 to 90

Description of

the business

model

Our business model 19

Requirement Policies Additional information Pages

Principal risks

and impact on

business activity

Principal risks and

uncertainties

Governance

Audit Committee Report

Sustainability

Sustainability and

Climate Change

Reporting

48 to 52

55 to 110

83 to 90

39 to 46

174 to 191

Non-financial key

performance

indicators

Strategic Report

Key performance

indicators

1 to 54

24 to 25

The policies referenced above provide the link between our purpose and values and how Ibstock is

managed and conducts its business.

Ibstock operates appropriate a range of polices and procedures to ensure that risks from unethical

conduct and illegal business practice are reduced and eliminated as far as possible. These underpin

our Code of Business Conduct, which, together with our Supplier Commitments, sets out the

behaviours expected of our colleagues and third parties we do business with. Apart from those listed

above, these policies include a Trade Association Policy.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Principal risks and uncertainties

How we manage our risks

Ibstock’s activities expose it to a variety of risks

that could impact the business and its strategic

objectives. The Board has established a risk

management and internal control framework

and determined the nature and extent of the

principal risks that the Company is willing to

take in order to achieve its long-term objectives.

The Board has completed a robust assessment

of the Company’s emerging and principal risks

as required by the Code for the year ended

31December 2025. This included consideration

of those risks that would threaten Ibstock’s

strategy, business model, its future performance,

liquidity, solvency, reputation and its people.

To support the discharge of the Board’s

responsibilities, the Audit Committee annually

reviews the operation and effectiveness of the

Company’s risk management and internal

control framework. This includes consideration

of Ibstock’s financial controls (which form a

subset of the broader set of controls). These

controls are also subject to periodic review by

Internal Audit. Further information on the role

of the Audit Committee in this process as well

asmore details of Ibstock’s system of internal

controls can be found within the Governance

Report, from pages 55 to 114.

Risk management framework

andriskappetite

The Board has overall responsibility for

ensuringthat Ibstock has an appropriate

riskmanagement framework and procedures

encompassing the nature and level of risk it

iswilling to accept to achieve its strategic

objectives. Management is responsible for

theeffective design, implementation and

operation of controls and risk mitigation plans.

Our risk management process is designed to

identify and manage, rather than eliminate,

therisk of failure to achieve business objectives

and to provide reasonable, but not absolute,

assurance against material misstatement orloss.

Risks are identified across our businesses and

functions by identifying what could stop us

achieving our objectives or impact the

sustainability of our business model. Risk owners

assess the likelihood and impact of these risks

against an enterprise-wide taxonomy that

benchmarks the likelihood and impact against

financial and non-financial criteria. They also

take into account current mitigating control

activities and identify where additional actions

may be needed to bring the risk within our risk

appetite. Consideration is given to costs of

mitigation and Ibstock operates compensating

controls that are proportionate to the benefit

provided. Risk owners bring the results of their

assessment, current status and action plans to

business and functional reviews, for support,

challenge and oversight.

During the year, the Board reviewed and

challenged management’s assessment of

risks.This was the final stage in a process

thatincluded the review of the divisional and

functional registers by senior management prior

to the ExCo’s approval of Ibstock’s principal risks

and uncertainties for presentation to the Audit

Committee and the Board.

With recognition of the nature of our industry,

Ibstock has set a low to medium risk tolerance

dependent on risk and has a robust process to

identify any changes to the risk landscape,

agreeing proportionate further mitigating

actions where appropriate. The Board seeks

toensure appropriate and proportionate

riskmanagement strategies are in place for

allmaterial risks.

Management operates a ‘three lines of

defence’ structure to its internal controls

(seediagram on facing page). The first line

ofdefence is operated by management

andcovers the day to day risk management

activities of implementing and executing

internal controls. The second line (health

andsafety, quality control and other central

functions) works alongside the risk owners

tosupport the design and implementation of

the controls framework, whilst the independent

third line is operated by our outsourced Internal

Audit provider, RSM UK Risk Assurance Services

LLP (‘RSM’). The Board is committed to a

continual process of improvement and

embedding of the risk management

frameworkwithin the organisation. This ensures

that the business identifies both existing and

emerging risks and continues to develop

appropriate and proportionate risk mitigation

strategies and action plans.

Climate change risk

We have an ambition to be the most

sustainable manufacturer of clay and concrete

products in the UK, and to lead our sector

inthedisclosure and transparency around

sustainability issues. We have invested

significant capital over the last five years

acrossIbstock contributing to a reduction

inthecarbon intensity of our manufacturing

processes. In 2022, we launched our ESG 2030

Strategy, which established a stretching set of

goals to achieve our ambition of net zero by

2040 (Scope 1 and 2); see the sustainability

section on pages 39 to 46 for more details.

At the same time, in order to assess the

resilience of our business model, we have

modelled the impact of both transitional and

physical risks of climate change on the financial

performance and position of the Company

under different climate scenarios. Details of

these impacts are disclosed in the TCFD

reporton pages 178 to 191.

Strong management

of risk

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Ibstock Plc | Annual Report and Accounts 2025

Principal risks and uncertainties continued

Climate change risk continued

We consider climate change to be a principal

risk given Ibstock’s material commitments with

regard to Ibstock’s ESG 2030 Strategy and its

target to be a net zero operation (Scope 1 and

2) by 2040. This carries significant reputational

risk and is a material focus. Details on transitional

and physical risks and opportunities related to

climate change are detailed in the TCFD report

on pages 181 to 183.

Principal risks and uncertainties

Our principal risks are identified and managed

in the same way as other risks. Principal risks are

owned by one or more members of the ExCo

and subject to a review by this group at least

twice each year, before a review by the Board

orrelevant Board Committee. A principal risk

and uncertainty is one that is currently

impacting, or could impact, Ibstock over the

next 12 months. Our principal risks are not an

exhaustive list of all risks, but are a position as

at31 December 2025. All risks carry equal

importance and weighting for the Board.

However, additional focus and priority may

begiven to specific risks for a period of time in

certain circumstances.

We have reviewed our principal risks over the

course of the year and have updated them to

reflect changes to the external environment

and our strategy and plans.

The full list of what the Board considers to be

those current principal risks and uncertainties

can be found from pages 50 to 52. Our

disclosure for each principal risk includes

themitigating actions for each and, where

applicable, updates on any change in the

profileduring the past year.

The principal risks and uncertainties should be

read in conjunction with the Strategic Report

asa whole from page 1. The Board is mindful

that additional risks and uncertainties of which

Ibstock is not currently aware or are believed

notto be significant may also adversely affect

strategy, business performance or financial

condition in the future.

The Board confirms that it has assessed and

monitored Ibstock’s principal risks throughout

the year, in accordance with the Code.

Improvements made during 2025

During 2025, management has further

embedded the identified transitional and

physical risks and opportunities related to

climate change in the individual businesses’

riskprocesses.

Changes in our principal risks

New and retired risks

Careful consideration has been given to the

Major Project Delivery risk, which has been

removed as a principal risk, as the two major

project developments at Atlas and Nostell

Horizon near conclusion.

Emerging risks

We continue to review additional emerging risks

that could significantly impact or challenge our

current strategy and business model and these

will continue to be considered by the Board.

There are processes in place to identify emerging

risks, which include the divisional and functional

risk process, regulatory and compliance horizon

scanning, including specifically climate change,

strategic risk identification, and review of

external emergingrisk information.

Any emerging risks identified have been recorded

and are being managed and monitored

alongside our existing risks. An example of an

emerging risk that was considered during

theyear is detailed below:

@ Ability to innovate and develop a market for

Ibstock Futures products and services – we

are now incorporating this in the Customer

and Industry risk, recognising the relative

infancy of the markets in which the Ibstock

Futures business operates.

Risk management framework

Board

Ultimate responsibility

Audit Committee

Review effectiveness

Executive Committee

Concrete

Support functions Clay

Operational level controls

Day to day activities to manage and identify risk (first line)

Internal Audit (third line)

Management, oversight,

direction and governance (second line)

Reporting and escalation

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Ibstock Plc | Annual Report and Accounts 2025

Principal risks and uncertainties continued

Risk movement: Increasing Decreasing No change NEW

1. Regulatory and Compliance

Risk level

Low

Owner

Group Company Secretary and

ComplianceOfficer

How it aligns to our strategy

Underlying all pillars

Link to business model

Extraction, Procurement, Manufacturing,

Product Design, Sales

Risk description

Non-compliance with legal or regulatory

requirements in the markets we operate in

(forexample, HSE, GDPR, anti-bribery and

corruption, the Building Safety Act and

taxlegislation).

This could expose Ibstock to financial penalties

and reputational damage. The risk trend has

increased slightly due to increased regulation.

Response/mitigation

@ Monitoring of the laws and regulations

across relevant markets to ensure Ibstock

remains compliant and is prepared for the

implementation of new requirements.

@ Alignment of key policies and procedures

with training on mandatory topics and

compliance requirements.

2. People and Talent Management

Risk level

Medium

Owner

Group People Director

How it aligns to our strategy

Underlying all pillars

Link to business model

Extraction, Manufacturing, Product Design, Sales

Risk description

An inability to attract, retain and develop people

would impact the delivery of our strategic

objectives. This may be compounded by the

ageing demographic in key employee groups,

thedependency on specialist technical

knowledge and skills in certain roles or enterprise

restructuring programmes.

Response/mitigation

@ Cultural and wellbeing programme.

@ Company-wide people programmes covering

succession planning, apprenticeships,

peopletraining and development, and high

potential employees.

@ Hybrid working model for office-based

employees.

@ Focused action plans as a result of

employee opinion survey.

3. Cyber and Information Systems

Risk level

Medium

Owner

CEO

How it aligns to our strategy

Underlying all pillars

Link to business model

Procurement, Manufacturing, Product Design,

Sales, Distribution

Risk description

Damage caused to the organisation, its customers

or suppliers through unauthorised access,

manipulation, corruption or destruction of data or

systems, or lack of investment leading to outdated

systems, which could impact operations or the

delivery of strategic objectives.

The risk has increased during the year as a result

of the attacks and wider threats on listed

companies and other organisations across the UK.

Response/mitigation

@ Achievement of UK Government’s Cyber

Essentials Plus accreditation.

@ IT disaster recovery plan.

@ Regular reviews to reduce the risk of successful

cyber attacks, including vulnerability and

penetration tests by thirdparties.

@ Cyber security training and

awarenessprogramme.

@ Continued investment in technologysystems.

Probability and impact assessment ofIbstock’s risks

Regulatory and Compliance

People and Talent Management

Cyber and Information Systems

Health, Safety and Environment

Economic Conditions

Financial Risk Management

Customer and Industry

Climate Change

1 2 3 4 5

Probability

Residual risk rating (after consideration of mitigating controls)

Impact

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Ibstock Plc | Annual Report and Accounts 2025

Principal risks and uncertainties continued

Risk movement: Increasing Decreasing No change NEW

4. Health, Safety and Environment (‘HSE’)

Risk level

Medium

Owner

CEO

How it aligns to our strategy

Underlying all pillars

Link to business model

Extraction, Manufacturing, Sales, Distribution

Risk description

Failure to provide a place of work that minimises

the risk of harm to our employees, those who work

with us, and the environment.

Response/mitigation

@ Dedicated internal Safety, Health,

Environment and Quality (‘SHEQ’) team

supporting operational delivery of HSE

management and leadership.

@ Appropriate health, safety and environment

policies to ensure compliance with all

relevant regulations and requirements

combined with regular monitoring through

internal and external auditing activity.

@ Six ‘Health and Safety Rules’ introduced

touse as a guide to drive behaviour on a

dailybasis.

@ Investment in safe systems and facilities

toprotect our employees.

5. Economic Conditions

Risk level

Medium

Owner

CEO

How it aligns to our strategy

Sustain

Link to business model

Procurement, Manufacturing, Product Design,

Sales, Distribution

Risk description

Changes in the UK macroeconomic environment

or Government housing policy could negatively

impact demand as consumer confidence and

affordability affects our customers, resulting in

reduced sales volumes.

The risk has increased during the year due to the

UK economic backdrop.

Response/mitigation

@ Monitoring of market and economic

trendand forecast information at the

Board,Executive and business leadership

level, which informs planning and

financialforecasting.

@ Flexibility to adjust capacity and cost base

across the organisation.

@ Disciplined capital allocation framework

andstrong balance sheet position.

6. Financial Risk Management

Risk level

Medium

Owner

Interim CFO

How it aligns to our strategy

Sustain

Link to business model

Procurement, Sales

Risk description

Ibstock is exposed to a number of financial risks,

both macroeconomic in nature (e.g. foreign

currency, interest rates, general inflation) and

more specific, including liquidity and credit risk,

aswell as volatility in the wholesale energy and

carbon markets.

Exposure to these risks could lead to increased

costs of business operations, financial loss or

reduced ability to access funding.

Response/mitigation

@ Internal control framework is designed

toreduce financial reporting risks.

@ Development, review and communication

of an enterprise-wide treasury policy, which

is designed to reduce residual risk with regard

to foreign exchange and interest rates.

@ Constant monitoring of energy and carbon

markets and forward purchase to mitigate

market volatility.

@ Stress testing Ibstock’s available financing

facilities to ensure resilience.

@ Operation of appropriate and dynamic sales

pricing strategies to remain competitive and

pass on significant increases in input costs.

Strategic Report

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Ibstock Plc | Annual Report and Accounts 2025

Principal risks and uncertainties continued

7. Customer and Industry

Risk level

Medium

Owner

Managing Director – Clay and Concrete

andManaging Director – Innovation and

Growth

How it aligns to our strategy

Sustain

Link to business model

Manufacturing, Product Design, Sales

Risk description

Not meeting customers’ needs and expectations

(e.g. service levels, product quality and digital

capability) as well as inability to innovate, develop

and implement new products and solutions that

respond to the markets’ and customers’

longer-term needs.

This could cause the loss of a key customer,

reduced sales volumes and loss of market position,

with Ibstock generating revenues from a relatively

concentrated customer base, in a cyclicalindustry.

Response/mitigation

@ Organisational structure enables us to

understand and respond more effectively

tothe evolving needs of our customers,

withbusiness and regional teams providing

customer support.

@ Sales and production are highly integrated

and also supported by design support and

technical teams.

@ Ibstock Futures established to focus on

construction mega trends of

industrialisation and sustainability.

@ Innovation culture embedded through

organisation design, including experienced

product managers encompassing horizon

scanning, and monitoring and reporting

onemerging market trends.

@ Customer surveys conducted to understand

and respond to customer requirements.

8. Climate Change

Risk level

Medium

Owner

Group Company Secretary and

ComplianceOfficer

How it aligns to our strategy

Sustain

Link to business model

Manufacturing, Product Design

Risk description

If Ibstock does not adapt the business to achieve

our sustainability commitments and meet climate

change regulations as well as mitigating climate

change-related transitional and physical risks, this

could result in failure to meet customer and

stakeholder expectations.

Transition risks include success of new technology

programmes and changes in customer

preferences impacting product demand.

Adetailed assessment of climate-related risks

andopportunities is provided in our TCFD report

on pages 178 to 191.

Response/mitigation

@ The Sustainability Committee oversees our

ESG 2030 Strategy and business response

toclimate change risks.

@ Clear sustainability strategy and transition

plan with KPIs published to track progress.

@ Transitional and physical climate risks and

opportunities being embedded in day to

day business operations.

@ Continued investment in new technologies,

enhancing operations and developing

products that are more sustainable.

Risk movement: Increasing Decreasing No change NEW

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Ibstock Plc | Annual Report and Accounts 2025

Viability and Going Concern Statements

Background

The Board’s assessment of the longer-term

viability of the Group is an integral part of our

business planning processes. These processes

include financial forecasting and risk and

opportunity management, as well as longer-

term scenario planning incorporating potential

future economic conditions, market trends,

emerging opportunities or threats and the

potential impact of climate change. The output

of the Group’s business planning processes

reflects the best estimate of the future prospects

of the business based on a range ofpossible

future scenarios. To make an assessment of

viability, these forecasts are rigorously stress

tested based upon potential adverse impacts

arising from the Group’s principal risks and

uncertainties, which are outlined on pages 48

to52 in severe but plausible scenarios that

testthe Group’s resilience.

Assessment

Management’s viability exercise, reviewed by

the Audit Committee on behalf of the Board,

has robustly assessed the market conditions,

risks and the liquidity and solvency of the Group,

including consideration of the wider economy

and future uncertainty. The Group has leading

positions within the markets in which it operates,

as noted on pages 15 to 18, and its business

strategy (see pages 20 to 23) is aimed at

continuing to strengthen its position in those

markets, create value for its shareholders

andensure its operations and finances

aresustainable.

Lookout period

The Group may use longer-term time horizons

for the purposes of investment decisions and

capital allocation given its markets and

construction timeframes. However, the Directors

believe that a three-year period provides the

most appropriate horizon over which to assess

viability. The performance of the building

products industry is sensitive to the broader

level of macroeconomic activity, which is

influenced by factors outside of the Group’s

control, including demographic trends, the

status of the housing market, mortgage

availability, interest rates, changes in household

income, inflation and also Government policy.

These macroeconomic drivers are currently

producing a period of prolonged uncertainty.

The Group’s financing consists of £100 million

of private placement notes from Pricoa Private

Capital, with staggered maturities in 2028

(£30million), 2031 (£40 million) and 2033

(£30million), in addition to a £125 million RCF

and a £50 million accordion facility, which was

renewed in November 2025 for a four-year

period with an extension option for a further

year and is provided by a syndicate of four of

our existing lenders. £42 million was drawn

at31December 2025.

Stress testing

Although each of the Group’s principal risks has

a potential effect and has been considered as

part of the overall assessment, only those that

result in a severe but plausible scenario have

been modelled. The Group’s viability modelling

has stress tested the annual budget and

strategic plan in the following scenarios, both

individually and in combination. The Group’s

viability assessment also considered two

compound scenarios whereby firstly the Group

experienced reputational damage during an

economic downturn, and secondly the Group

experienced business disruption during an

economic downturn.

The Group’s viability assessment also included

asensitivity involving a reverse stress test

tounderstand the Group’s resilience through

establishing the financial headroom that

existsbefore viability is threatened. This

wasconducted by reducing profitability

duetoreducing industry demand for the

Group’sproducts.

Assumptions

In determining the viability of the Group,

theBoard made the following assumptions:

@ The economic climate in which the Group

operates remains in line with a broad

consensus of external forecasts.

@ There is no material change in the legal

andregulatory frameworks with which the

Group complies.

@ There are no material changes in construction

methods used in the markets in which the

Group operates.

@ The Group’s risk mitigation strategies

continue to be effective.

@ The Group’s past record of successfully

mitigating significant construction industry

declines can be replicated.

This assessment is based on debt maturities

over the assessment period as follows:

@ £30 million US Private Placement maturing

in2028.

The scenarios assume an appropriate

management response to the specific event

which could be taken and also considers specific

activities to improve liquidity, such as raising

additional funds, reducing expenditure and

selling particular assets.

The Group believes it has the mechanisms to

identify the early need for mitigating actions

and, as demonstrated by our actions during

thepandemic, has the ability to implement

them on a timely basis if necessary.

Scenario 1

Economic downturn

Link to risk

@ Risk 5 – Economic Conditions

@ Risk 6 – Financial Risk Management

@ Risk 7 – Customer and Industry

The impact of a severe and prolonged reduction

in demand for its products on the basis of

reduced house building activity arising from

either a macroeconomic downturn or negative

impacts of geopolitical events; unexpected

changes to Government policy resulting in

reduced volume of product sold; or future

impacts on customer activities as a result of

apandemic, as well as a benign environment

ofprolonged price stagnation on sales.

This considered a demand reduction of 35% for

the Clay and Concrete products in 2026 versus

the demand levels experienced in five of the

past 10 years, recovering to a 25% reduction in

2027 and 15% reduction in 2028, representing

a gradual recovery after the first year.

Given the current systemic under supply of

housing stock, the Directors believe any

reduction in underlying demand above these

levels would lead to Government stimulus to

underpin levels of new-build housing. The Group

has proven mitigating strategies including the

mothballing and/or full or partial closure of

production facilities, together with the

reduction of shift patterns at other factories,

thereby providing flexibility if the market returns

more quickly.

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Viability and Going Concern Statements continued

Scenario 2

Production cost increases

Link to risk

@ Risk 1 – Regulatory and Compliance

@ Risk 5 – Economic Conditions

@ Risk 6 – Financial Risk Management

@ Risk 8 – Climate Change

A situation whereby the cost of production for

all products increases by 10% and 20% for

unhedged energy and 25% for carbon

(recognising the material increase included in

the budget and strategic plan) as a result of

inflationary input cost rises across the Group

arising from economic uncertainty, geopolitical

events, or additional regulatory costs imposing

additional cost within the production process

arising from climate change-related increases

ortariffs, in the scenario whereby the Group is

unable to pass on these costs to customers.

Thisis based on historical cost inflation and

price volatility seen in wholesale energy markets.

The Group seeks to mitigate and improve

resilience to this scenario, through operating a

policy of forward purchasing its energy

requirements to lock in the costs of production

to inform price negotiations with its customers

and adopting a dynamic pricing strategy in

relation to inflationary cost increases. Further,

production plans could be flexed to reduce the

available product range, either to focus upon

more energy efficient products or to reduce

changeovers at factories, which would provide

mitigating production efficiencies.

Scenario 3

Disruption in business activities

Link to risk

@ Risk 3 – Cyber and Information Systems

@ Risk 8 – Climate Change

The impact of an event, such as prolonged

weather events as a result of climate change

(for example, mean temperature changes,

water stress, storms or flooding), a cyber attack,

local/national restrictions on the ability to work

or other unanticipated event, which prevents

production at one or more of the Group’s

facilities and therefore prevents customer

demand being met. This specifically models the

consequences of a significant production facility

(Eclipse) being unable to produce for a

prolonged period and also an outage at

factories vulnerable to the climate-related

physical risk of increased precipitation for a

period of one month as identified in the TCFD

risk assessment. The impact of which would

represent around 10% of production.

The Group aims to mitigate the risk associated

with disruption through its business continuity

and climate change resilience plans, which

operate at a factory level, and its ability to

transfer some of its production across its

network of facilities.

Scenario 4

Reputational damage

Link to risk

@ Risk 2 – People and Talent Management

@ Risk 7 – Customer and Industry

A scenario whereby the Group’s reputation is

damaged as a result of customer relationship

breakdown, significant employee disengagement

or product quality issues, resulting in a sudden

reduction in sales activity. The scenario

modelled includes a reduction in revenue of

10% for a period of three years, representing

potential impact or price reduction to maintain

customers. The Group seeks to mitigate the risks

of reputational damage on an ongoing basis

with its internal control framework and series of

independent reviews and audits.

The Group’s viability assessment also

considered two compound scenarios whereby

the Group experienced reputational damage

during an economic downturn and business

disruption during an economic downturn.

The scenarios also consider the covenants with

respect to the Group’s borrowings, ensuring

these thresholds are met.

The scenarios are hypothetical and severe for

the purpose of creating situations that have

theability to threaten the Group’s viability.

The results of the stress testing demonstrate

that, due to the Group’s cash-generative nature

and access to its RCF, it would be able to

withstand the impacts of these scenarios and

remain cash generative.

Viability Statement

Based on their assessment of prospects

andviability above, the Directors confirm that

there is a reasonable expectation that the

Group will be able to continue in operation

andmeet its liabilities as they fall due over

thenext three years.

Going Concern Statement

The Directors also considered it appropriate to

prepare the financial statements on the going

concern basis, as explained in the basis of

preparation paragraph in Note 1 to the

financialstatements.

Strategic Report

The Strategic Report on pages 1 to 54 has

been approved and signed by order of the

Board by:

Nick Giles

Group Company Secretary

4 March 2026

Strategic Report

Governance Report Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Chair’s Introduction to the Governance Report

I am pleased to introduce my ﬁrst

Governance Report, on behalf of your Board

and in accordance with the 2024 UK

Corporate Governance Code (the ‘Code’), to

demonstrate our commitment to delivering

long-term sustainable value for our

shareholders and wider stakeholders.

This section has been structured so as to

provide a clear and transparent overview of

theBoard’s oversight of Ibstock’s governance

framework, to explain how we have applied

theprinciples of the Code and conﬁrm our

compliance in full with its provisions for the

ﬁnancial year ended 31 December 2025.

Atable setting out where the key content can

befound within the Governance Report, and

cross-references to relevant parts of the

Strategic Report, is on page 62.

We welcome feedback and suggestions on our

disclosures from all stakeholders through our

Group Company Secretary, who can be

contacted at our registered office address.

Review of the year

Throughout 2025, the Board and its

Committees have played a key role in guiding

the Group through another demanding year,

byboth supporting management and, where

appropriate, providing necessary challenge.

All Directors take pride in the discharge of our

Board duties and responsibilities in a transparent,

open and honest manner, an approach that is

reﬂected by senior management and colleagues

at all levels within the business. Read more on

page 69.

Our aim is to ensure that good governance

extends beyond the boardroom and is

continually borne in mind as part of the

successful delivery of the Group’s strategic

pillars over both the short and long term.

Succession planning

There have been a number of changes to the

composition of your Board during the year.

As planned, Jonathan Nicholls stepped down

asChair at the conclusion of the 2025 AGM,

having served on the Board since Ibstock

became a publicly listed company in 2015.

Weexpress our sincere thanks to Jonathan for

the invaluable contribution and commitment

hedemonstrated throughout his tenure, in

particular as Chair since 2018 where he

signiﬁcantly helped to shape the direction and

success of the Group. I would also like to convey

a personal thank you for the signiﬁcant time he

invested in ensuring a smooth and effective

handover to me.

As announced on 30 April 2025, Chris McLeish,

CFO, left the Group in October 2025 and Simon

Bedford, Group Financial Controller, was

appointed Interim CFO. We wish Chris all the

best for the future and thank Simon for

stepping into this role at such a critical time

forIbstock. The search process for a new CFO

is nearing its conclusion and we hope to be in

aposition to update all stakeholders on the

outcome as soon as possible.

Having also started a process to identify a

successor for Justin Read, our Audit Chair, who

reached his nine-year term in January 2026,

Iam pleased to be able to welcome Martin

Payne to the Board. Martin will join Ibstock

on30 March 2026 and assume the role of

Chairofthe Audit Committee when Justin

stepsdownat the conclusion of the AGM.

Succession planning priorities for 2026 include

concluding the search process for the CFO and

considering the successors to Louis Eperjesi and

Claire Hawkings, both of whom will have served

nine years on the Board during 2027.

Board Performance Review

The Board conducted an internal performance

review this year. It concluded that the Board

andits Committees remain effective, delivering

strong oversight through informed decision-

making and strategic input, and providing

consistent challenge and support for the

Executive Committee (the ‘ExCo’). Read more

about the Board Performance Review on page 73.

Diversity and inclusion

We are committed to promoting equal

opportunities in employment and improving the

diversity of our workforce. The Board recognises

that gender diversity is a wider issue within our

industry, with many of our roles, especially those

that are factory based, traditionally being more

popular with males. Motivated by this historical

challenge, we remain committed to further

improvement of our diversity statistics. We also

note the diversity data collection activity during

the year to better understand other elements of

diversity within our workforce to enable future

targets to be established.

The Board supports the aims and objectives of

the Listing Rules and the FTSE Women Leaders

Review, striving to achieve an appropriate

balance of women on our Board and in senior

positions throughout the Group. Whilst we

recognise that we currently do not have at least

one woman in the Chair, Senior Independent

Director, CEO or CFO roles, we remain

committed to ensuring that diversity is a key

consideration in our appointment processes.

AGM

Our AGM will be held on 21 May 2026 at the

I-Studio, 54 Hatton Garden, London EC1N 8HN.

We encourage shareholders to attend in person

in order to pose their questions to the Board and

take the opportunity to engage with individual

Directors; I certainly look forward to meeting

shareholders at what will be my ﬁrst AGM as Chair.

Looking ahead

We are prepared for 2026 and the challenges

that this year will undoubtedly bring. I am

confident in the Board’s and the ExCo’s ability

to continue to build the business on our strong,

200-year foundation.

Richard Akers

Chair

Strong foundations

Richard Akers

Chair

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Governance at a glance

Built on strong

governance

Sustain Innovation Growth

Link to strategic pillars:

Strategy & leadership

Health & safety

Built envt. & construction

Manufacturing

Product innovation

Customer experience

Sustainability

Financial & reporting controls

Remuneration

People & culture

M&A

Government regulation

Board skills matrix

Chair

Executive Directors

Independent

Non-Executive Directors

Board composition

Female

Male

Board gender representation

Minority ethnic

White

Board diversity representation

51 – 60 years

61 – 70 years

70+

Board age representation

Board tenure

0 – 3 years

3 – 6 years

6 – 9 years

9+ years

Board independence

Chair (independent

on appointment)

Senior Independent

Director (‘SID’)

Independent

Non-Executive Directors

Executive Directors

Board and Committee meeting attendance in 2025

Member Board

Nomination

Committee

Audit

Committee

Remuneration

Committee

Sustainability

Committee

Richard Akers

7/7 5/5 – 3/3 –

Joe Hudson 10/10 – – – 4/4

Peju Adebajo 10/10 6/6 4/4 4/4 4/4

Nicola Bruce 10/10 6/6 4/4 4/4 –

Louis Eperjesi 10/10 6/6 4/4 4/4 4/4

Claire Hawkings 10/10 6/6 4/4 4/4 4/4

Justin Read 10/10 6/6 4/4 4/4 –

Jonathan Nicholls

3/3 1/1 – 2/2 –

Chris McLeish

7/7 – – – –

1 Richard Akers joined the Board on 5 May 2025 and became Chair following the AGM on 15 May 2025.

2 Jonathan Nicholls stepped down from the Board following the AGM on 15 May 2025.

3 Chris McLeish left the business on 10 October 2025.

Data is as at 4 March 2026.

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

1 1

3 1

Governance at a glance continued

Key Board decisions in 2025

@ Appointment of Richard Akers as an

Independent Non-Executive Director

andChair Designate with effect from

5May2025.

@ Disposal of the Rooﬁng business and certain

other assets to strengthen the balance sheet.

@ Reﬁnancing of £125 million Revolving Credit

Facility at improved pricing.

@ Introduction of a refreshed governance and

compliance framework.

@ Conﬁrmation that the Company has applied

the principles and complied fully with the

provisions of the UK Corporate Governance

Code 2024.

Key:

B = Board meeting

BSD = Board Strategy Day

A = Audit Committee meeting

N = Nomination Committee meeting

R = Remuneration Committee meeting

S = Sustainability Committee meeting

AGM = Annual General Meeting

The Board’s year

Board and Committee meetings in 2025

Key events in 2025

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

B B B B

AGM

January

Director attendance at Safe Start

2025 sessions

Q4 2024 Trading Update

February

Consultation with shareholders on

proposed Remuneration Policy

March

2024 Full Year Results

Listening Post – attended by

JoeHudson, Peju Adebajo and

Louis Eperjesi

April

Q1 2025 Trading Update

May

Jonathan Nicholls steps down

asChair

Richard Akers appointed as Chair

Sustainability Committee site visit

to Ibstock Aldridge

June

Board visit to Nostell Factory,

WestYorkshire

Q2 2025 Trading Update

July

Richard Akers holds introductory

meetings with major shareholders

August

2025 Interim Results

September

Site visit to Coltman, Weeford

October

Q3 2025 Trading Update

Listening Post – attended by Joe

Hudson and Peju Adebajo

Chris McLeish steps down as CFO

Simon Bedford appointed as

Interim CFO

December

Investor Day held at our Atlas

Factory, Walsall

Listening Post – attended by

JoeHudson, Nicola Bruce and

Justin Read

BSD

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Board of Directors

Our highly experienced Board

Joe Hudson BA (Hons), FCIPD

Chief Executive Officer

Date appointed to the Board:

CEO Designate – 2 January 2018; CEO – 4 April 2018

Skills and experience which support our strategy

and deliver long-term sustainable success:

Joe brings extensive commercial, operational and

people experience to the Board, along with vast

knowledge of developing and implementing strategy

across large-scale business combinations. Joe has had

a varied international career in general management,

operations and strategic human resources across

Europe, North America and Africa, including as CEO

of Lafarge Africa Plc and Managing Director of

Aggregate Industries UK. He has operational line

management experience in cement, plasterboard,

concrete products and construction materials, and

has also undertaken general management

programmes at INSEAD and London Business School.

Key external appointments:

@ Officer of the Construction Products Association

Louis Eperjesi

Senior Independent Director

Date appointed to the Board:

Independent Non-Executive Director – 1 June 2018;

Senior Independent Director – 27 April 2023

Skills and experience which support our strategy

and deliver long-term sustainable success:

Louis has a strong background in the manufacturing

and supply of building products throughout UK and

international markets. With over 15 years’ experience

in UK capital markets, he has been involved in a wide

range of commercial strategy development,

marketing campaigns, change management

programmes and M&A activity. Louis has had a long

career in the building materials sector, most recently

serving as CEO of Tyman Plc and having held other

senior executive roles including at Kingspan Group

Plc, Baxi Group Ltd, Lafarge SA and Caradon Plc.

Key external appointments:

@ Senior Independent Director of Accsys

Technologies Plc

@ Non-Executive Director of Howden Joinery Group Plc

@ Non-Executive Director of Trifast Plc

Peju Adebajo BSc, MEng, MBA

Independent Non-Executive Director

Date appointed to the Board:

26 November 2021

Skills and experience which support our strategy

and deliver long-term sustainable success:

Peju is an experienced CEO, having worked across a

number of industrial and regulated sectors including

building materials, renewables, consulting and

banking. Her previous roles include CEO and

Managing Director positions with the Major State

Agricultural Department in Nigeria, Lafarge Africa Plc

and Mouka Limited. Peju has significant experience of

expansion and development of products and services

and brings to the Board extensive knowledge of

sustainability leadership and value creation.

Key external appointments:

@ Non-Executive Director of Wolseley Jersey Limited

Richard Akers FRICS

Chair

Date appointed to the Board:

Chair Designate – 5 May 2025; Chair – 15 May 2025

Skills and experience which support our strategy

and deliver long-term sustainable success:

Richard has a wealth of governance and leadership

experience and provides broad sector insight of the

property development, investment and house

building industries. He spent his professional career

inthe property and land acquisition sector, including

20 years with Land Securities, where he held various

senior executive positions, culminating in him joining

the main board as Managing Director of the retail

portfolio in 2005 until his retirement in 2014. Richard

was previously Chairman of Redrow Plc, overseeing its

merger with Barratt Developments Plc, and he has

also held a number of other Non-Executive Director

positions including with Unite Group Plc, EMAAR

Malls (Dubai) and as part of the Battersea Power

Station advisory board.

Key external appointments:

@ Non-Executive Director of Shaftsbury Capital Plc

@ Chair of Miller Homes Limited

N* S S SR RN NA A

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Board of Directors continued

Nicola Bruce MA, MBA, FCMA

Independent Non-Executive Director

Date appointed to the Board:

29 March 2023

Skills and experience which support our strategy

and deliver long-term sustainable success:

Nicola is a Fellow of the Chartered Institute of

Management Accountants and has spent her career

specialising in strategy and business development at

both private and listed companies, including as Group

Director of Strategy at De La Rue Plc and as a Partner

at the Monitor Group (now Deloitte). She has

extensive experience as a Remuneration Committee

Chair and brings to the Board a breadth of strategy,

business development and governance experience.

Nicola holds a number of Non-Executive Director

roles within the residential property and building

materials sectors, including previously as Senior

Independent Director at the Anchor Hanover Group.

Key external appointments:

@ Senior Independent Director of MJ Gleeson Plc

@ Non-Executive Director of Stelrad Plc

@ Non-Executive Director of Ofwat

Claire Hawkings BSc (Hons), MBA

Independent Non-Executive Director

Date appointed to the Board:

1 September 2018

Skills and experience which support our strategy

and deliver long-term sustainable success:

As an environmental scientist and ESG professional,

Claire has vast sustainability leadership and

management expertise, with widespread experience

in development and delivery of organisational

strategies, including business process transformation,

leadership succession and diversity and inclusion. She

spent 30 years in the energy sector in a variety of

international leadership positions, most recently with

Tullow Oil Plc, and prior to that with BG Group Plc and

British Gas Plc. Claire is a Fellow of the Energy

Institute and a Fellow of Chapter Zero.

Key external appointments:

@ Senior Independent Director of James Fisher and

Sons Plc

@ Non-Executive Director of FirstGroup Plc

@ Non-Executive Director of Defence Equipment and

Support (Ministry of Defence)

Justin Read MA, MBA

Independent Non-Executive Director

Date appointed to the Board:

1 January 2017

Skills and experience which support our strategy

and deliver long-term sustainable success:

Justin has a wealth of financial and management

experience working as an Executive and Non-

Executive across different industries in a wide variety

of businesses, both within the UK and internationally.

He has held Group Finance Director positions within

FTSE-listed companies including SEGRO Plc and

Speedy Hire Plc, as well as undertaking senior roles

within the building materials sector, where he gained

experience in strategy, M&A, business development,

investor relations and capital raising. Justin also has

recent and relevant financial experience from his

Audit Committee Chair roles in both listed and

privateentities.

Key external appointments:

@ Senior Independent Director of Grainger Plc

@ Senior Independent Director of Affinity Water Limited

Key to Committee membership:

A Audit Committee N Nomination Committee R Remuneration Committee S Sustainability Committee * Chair

R RN N NA A A*R* S*

Directors serving for part of the year

Jonathan Nicholls

Jonathan stepped down from the Board on

15May2025, having served as a Director since

22September 2015 and as Chair since 24 May 2018.

Chris McLeish BSc, ACA

Chris stepped down from the Board on

10October2025, having served as a Director since

1August 2019 and as CFO since 31 August 2019.

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Governance framework

The Board has ultimate responsibility for

the overall leadership of the Group.

The governance framework ensures that the

Board remains effective in both making

decisions and maintaining oversight of key

strategic, ﬁnancial, operational and compliance

matters, which are set out in the Schedule of

Matters Reserved that the Board has adopted.

In line with the Terms of Reference approved

bythe Board, certain matters are delegated to

its Committees, which carry out detailed work

and report on their activities to the Board at

each meeting.

Responsibility for the operation of the Group is

formally delegated by the Board to the CEO,

who manages the operational running of the

business through the ExCo.

The Board

The Board’s role is to ensure the long-term

sustainable success of the Group by setting

strategy through which value can be created

and preserved for the mutual beneﬁt of

ourstakeholders.

In making its decisions, the Board considers

theGroup’s purpose, strategy and culture, and

discusses stakeholders’ wide-ranging views

andpriorities.

The Board also provides rigorous challenge

tomanagement and ensures the Group

maintains effective risk management and

internal control systems.

There are a number of key areas that are

speciﬁcally reserved for the decision of the

Board. Other matters, including the day to day

management of the Group, may be delegated

to the ExCo. Although a wide range of the

Board’s powers and authorities are delegated

tothe CEO, the Board retains ultimate

responsibility and authority for their exercise.

Board Committees

The Board delegates speciﬁc areas of focus to its Committees. Committee members have the requisite

skills and experience to enable the Committee to deep dive into certain topics of importance on behalf

of the Board.

The Chair of each Committee formally reports to the Board at every meeting, demonstrating

accountability for the recommendations made by the Committee to the Board and ensuring that the

Board retains suitable oversight of the matters delegated to its Committees.

Informing

Reporting

Read more about the

Audit Committee on

pages 83 to 90

Biographies for each Director can

be found on pages 58 to 59

Information about the division of

responsibilities across Board roles

can be found on page 70

Read more about the

Nomination Committee on

pages 76 to 80

Read more about the

Remuneration Committee on

pages 91 to 110

Scan the QR code below to view our corporate

governance documentation, including the

Schedule of Matters Reserved to the Board and

Committee Terms of Reference

www.ibstock.co.uk/investors/corporate-governance

Remuneration

Committee

@ Reviews the strategy and

policy in relation to terms and

conditions of engagement of

the Chair, the Executive

Directors, Group Company

Secretary and other members

of the ExCo.

@ Determines the remuneration

of the Chair, Executive

Directors, Group Company

Secretary and other members

of the ExCo.

@ Reviews workforce

remuneration-related policies

and practices.

Nomination

Committee

@ Reviews succession plans for

the Board, its Committees and

the ExCo, considering

structure, size, composition

and diversity.

@ Develops a formal, rigorous

and transparent procedure for

making recommendations on

appointments to the Board.

@ Ensures that the Board has the

appropriate knowledge, skills

and experience to operate

effectively and deliver the

Group’s strategy.

Audit

Committee

@ Reviews the integrity of the

ﬁnancial statements and

related announcements.

@ Monitors the adequacy and

effectiveness of the Group’s

risk management and internal

control framework.

@ Maintains and manages the

relationship with the Internal

and External Auditors,

including monitoring their

performance and

reappointment.

@ Reviews whistleblowing

arrangements and any

reportsarising.

A strong structure

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Governance framework continued

Board Committees

Read more about the

Sustainability Committee on

pages 81 to 82

Disclosure

Committee

Advises the Board to ensure the

timely and accurate disclosure of

price-sensitive information that is

required to be disclosed to meet

legal and regulatory obligations

and requirements.

Sustainability

Committee

@ Oversees the strategies,

policies and performance

ofthe Group in relation to

matters encompassing

environment, social

andgovernance.

@ Reviews the environmental

and social impact of the

Group’s operations.

@ Ensures that appropriate

frameworks are put in place to

maintain good governance of

the Group’s operation of

sustainability matters and

that key stakeholders remain

actively engaged.

Executive Committee (‘ExCo’)

Responsibility for the development and implementation of the

Group’s strategy and overall commercial objectives rests with the

CEO, who is supported by the ExCo. The ExCo oversees the steering

committees and working groups needed at an operational level to

achieve delivery of the strategy. The CEO, Interim CFO and other

members of the ExCo are responsible for providing updates on

matters at Board meetings. Formal meetings are held on a monthly

basis with weekly catch-up calls diarised to ensure all appropriate

matters receive time and consideration by this group.

Joe Hudson BA (Hons), FCIPD

Chief Executive Officer

Joined the business in January 2018 (appointed CEO in April 2018)

Simon Bedford BSc, MBA, FCA

Interim Chief Financial Officer

Joined the business in June 2020 as Group Financial Controller

(appointed Interim CFO in October 2025)

Nick Giles MA, FCG

Group Company Secretary and ComplianceOfficer

Joined the business in July 2024

Chris Murray BSc, MSc, MBA

Managing Director – Clay and Concrete

Joined the business in November 2023

Andrew Shepherd

Managing Director – Innovation and Growth

Joined the business in July 2024

Operational and

Functional

Leadership

Responsibility for the day to day

operations and functional

management of the business.

Informing

Reporting

Informing

Reporting

Biographies for each member of the

ExCo can be found on our website.

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Corporate Governance Statement

Compliance with the UK Corporate

Governance Code 2024 (‘Code’)

The version of the Corporate Governance Code

applicable to this Annual Report is the Code

issued by the Financial Reporting Council (‘FRC’)

in January 2024. This Statement explains how

we have applied the principles of the Code and

conﬁrms compliance with its provisions for the

ﬁnancial year ended 31 December 2025.

The principles set out in the Code emphasise

the value of good corporate governance to the

long-term sustainable success of listed

companies. These principles, and the supporting

provisions, cover ﬁve broad themes and the

Board is responsible for ensuring that the

Company has appropriate frameworks in place

to comply with the requirements of the Code.

Through their work, the Board and Committees

uphold the provisions of the Code, and the

Boardconﬁrms that, during the year ended

31December 2025, the Company has fully

applied the principles of good governance

andhasbeen compliant with the provisions

oftheCode.

The full wording of the Code is available on the

FRC’s website at www.frc.org.uk.

Board leadership and

companypurpose

The Board is collectively responsible for the

effective and entrepreneurial leadership of

the Company in order to ensure its

long-term sustainable success, including

the generation of value for Ibstock’s

shareholders and society as a whole.

It achieves this by doing business that is

consistent with its purpose, vision and

values whilst remaining clear on the

interests of its key stakeholders as well as

its impacts on the environment.

Information on how the Board led the

Company, establishing and overseeing the

purpose, values, strategy and integration of

culture, ensuring that necessary resources

are in place and that stakeholder

engagement was effective, can be found

throughout the Strategic Report.

The role of the Board is set out in the Governance

Report from page63.

The Chair’s Introduction to the Governance

Report can be found on page 55.

An overview of the Company’s purpose and

values is set out on page 20.

The Company’s strategy and performance

against KPIs can be found on pages20 to 25.

How the Board oversees the Company’s strategy

is detailed on pages60 to 61.

How the Board engages with stakeholders is

detailed on pages35 to 38.

The Board’s Section 172(1) Statement is included

on page 34.

A list of Group policies and practices can be

found on p age 47.

Division of responsibilities

The governance framework set out on

pages 60 to 61 provides an overview of the

Board Committees in place.

Further details of each Committee are

provided in the respective Committee

reports and a table setting out attendance

at meetings during the year can be found

on page 56.

The division of responsibilities between the

Chair and CEO is clearly deﬁned on page

70 and set out in writing. The Board fully

supports the separation of these two roles.

Composition, succession

and evaluation

Details about the composition of the

Board, along with individual Board member

biographies and tenure, are

on pages 56 to 59.

The outputs of this year’s internal Board

Performance Review are set out on

page 73.

The Nominations Committee Report can

be found on pages 76 to 80 and provides

information on the Committee’s work this

year, including Board succession planning

and the process for appointments.

Application of the Code principles

Audit, risk and internal control

The Board conﬁrms that it has carried out

a robust assessment of the emerging and

principal risks facing the Group (including

those that would threaten the business

model, future performance, solvency,

liquidity or reputation), its appetite with

respect to those risks and the systems

required to mitigate and manage them.

Details on the review process are set

out on pages 74 to 75 and further details

on the emerging and principal risks and

uncertainties can be found on pages 48

to52.

Climate-related ﬁnancial disclosures are

set out on pages178 to 191.

The Audit Committee Report, set out on

pages 83 to 90, provides details of the

Committee’s review of the Company’s risk

and control environment, the fair, balanced

and understandable process, and its

responsibilities relating to Internal and

External Audit, including how the

Committee met the FRC’s Minimum

Standard in relation to the External Audit.

Remuneration

The Directors’ Remuneration Report, on

pages 91 to 110, contains information

on the Company’s Remuneration Policy

as well as its application in 2025 and for

the coming ﬁnancial year.

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Board leadership and company purpose

An effective Board

The Board is collectively responsible for the

effective and entrepreneurial leadership

of the Group in order to ensure its long-term

sustainable success including the generation

of value for Ibstock’s shareholders and society

as a whole. It achieves this by doing business

that is consistent with its purpose, vision and

values whilst remaining clear on the interests

of its key stakeholders as well as its impacts on

the environment. Each member of the Board

acts in a way which they consider to be in the

best long-term interests of the Group and in

compliance with their duties under Sections

170 to 177 of the Companies Act 2006. Both

the Section 172(1) Statement and the

stakeholder engagement section on pages 35

to 38 provide further information. The activities

of the Board on pages 66 to 69 also set out

which stakeholder groups were considered as

part of different agenda items during the year.

Shareholders look to the Board for the

successful delivery of the Group’s strategy

and ﬁnancial performance, so the Board has

established a framework of prudent and

effective controls that enable risk to be assessed

and managed. More information on the risk

management and risk control framework can

be found in the principal risks and uncertainties

section on page 48 and the audit, risk and

internal control section on pages 74 to 75. On a

regular basis, we review our level of oversight

and monitor risks over a variety of areas,

including strategy, acquisitions and disposals,

capital expenditure on new projects, ﬁnance,

people, and sustainability matters.

Board governance

Board authorities are clearly documented in the

Articles of Association and Schedule of Matters

Reserved to the Board.

All of these documents are available on our

website, www.ibstock.co.uk, along with Terms

of Reference for each of the Board Committees

and speciﬁc Board roles, and the biographies

of individual Board members.

Board independence

The independence of the Board is a matter

of utmost importance given the vital role

Non-Executive Directors play in scrutinising

the performance of management and holding

individual Executive Directors to account

against agreed performance objectives.

The Chair will hold meetings with Non-Executive

Directors without the Executive Directors

or any management present as required,

and Non-Executive Directors can obtain

independent professional advice, at the

Company’s expense, in the performance

of their duties.

All Directors have access to the advice and

services of the Group Company Secretary,

whose appointment and removal are matters

reserved for the Board.

The independence of the Non-Executive

Directors is formally reviewed by the

Nomination Committee on an annual basis,

and as part of the Board Performance Review.

Particular focus is applied to Directors who have

served over six years on the Board to ensure

that these Directors continue to demonstrate

independent character, judgement and

objectivity. This is assessed by considering a

number of factors including, but not limited to,

the Director’s:

@ ability and willingness to make objective

decisions and hold management to account;

@ demonstration of independence through

participation at meetings with management

and interactions with stakeholders;

@ arm’s-length approach to dealing with

Executive Directors and continued challenge

of management where appropriate; and

@ external directorship appointments and

whether these conﬂict, or have the potential

to cause a conﬂict, with the Company.

Following this year’s review, the Nomination

Committee and Board concluded that all the

Non-Executive Directors continue to remain

independent in character and judgement and

are free from any business or other relationships

that could materially affect the exercise of their

judgement. Read more in the Nomination

Committee Report on pages 76 to 80.

Strong leadership

withpurpose

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63Ibstock Plc | Annual Report and Accounts 2025

Board leadership and company purpose continued

Conﬂicts of interest

A register of conﬂicts of interest is maintained

by the Group Company Secretary and is

considered by the Board twice a year. The

Company’s Articles of Association, which are in

line with the Companies Act 2006, allow the

Board to authorise potential conﬂicts of interest

that may arise and to impose limits or

conditions, as appropriate, when giving such

authorisation. During the year, and as at the

date of this report, apart from those relating to

directorships of other companies, no conﬂicts

had been reported to the Board.

The Board is content with the level of external

directorships held by the Chair and the

Independent Non-Executive Directors, as these

do not impact on the time that any Director

devotes to the Company. The Board is satisﬁed

that Directors have sufficient time to perform

their duties and, furthermore, the Board believes

that this external experience serves to enhance

the capability of the Board.

Any concerns of the Directors around the

operation of the Board or the management of

the Company, and that cannot be resolved, are

recorded in the Board minutes. Directors are

asked to provide a written statement to the Chair

for circulation to the Board should they have

such concerns when they resign from the Board.

Schedule of Matters Reserved

to the Board

To ensure the Board maintains oversight of the

areas material to the delivery of the Group’s

strategy and purpose, the Board undertakes an

annual review of the Matters Reserved to the

Board. The latest review took place in December

2025 and the Board agreed that the Schedule

contained areas appropriate to require Board

involvement, including in relation to strategy,

structure and capital, ﬁnancial reporting,

controls and communication with stakeholders.

The Board also reviews its skills matrix to

determine whether any additional skills or

development opportunities are needed in order

for the Board to discharge its duties effectively.

Our purpose, values and culture

The construction industry plays a vital part in the

UK economy. Ibstock has a clear and simple

purpose to be at the heart of building and

enable the construction of homes and spaces

that help people live better lives with its range of

innovative clay and concrete building products

as we have been doing for over 200 years. We

have a strategy that is informed by our purpose

and aligned with a responsible business ambition

underpinned by a culture that is deﬁned by our

core values of Trust, Care, Teamwork and

Courage. Strategy sessions form part of the

annual Board cycle that is prepared by the Chair,

CEO and Group Company Secretary.

The Board aims to ensure that Ibstock’s values

are integrated into decision-making and that all

policies and procedures are consistent with and

support our culture. Where behaviour is not

aligned with these values, the Board and

management seek to ensure that appropriate

action is taken. The Board has not needed to

seek corrective action during 2025.

Read more about how the Board assesses culture in

order to satisfy itself that our culture is aligned with

our purpose, values and strategy on page69

Strategy

Responsibility to all our stakeholders for the

approval and delivery of the Group’s strategy

and for creating and overseeing the framework

to support its delivery sits with the Board.

During the year, the Board monitored the

implementation of the Group’s corporate

strategy through consideration of standing

strategic items at every Board meeting and an

annual Strategy Day held with the ExCo, to help

consider the strategic direction of the Group for

the short, medium and long term.

The development and implementation of the

Group’s strategy and overall commercial

objectives rests with the CEO, who is supported

by the ExCo.

Stakeholder engagement

The Board recognises the value of maintaining

close relationships with all of its stakeholders,

understanding their views and the importance

of these relationships in delivering our strategy

and the Group’s purpose.

it ensures that there is effective engagement

with all stakeholders and encourages two-way

dialogue so that decisions made by the Board

take these views and any potential impacts

intoaccount.

Engagement with all stakeholder groups

ensures that the Board has a good

understanding of their interests and the

importance and value of each relative to the

Group’s business and strategy.

An overview of the Group’s key stakeholders,

including a summary of the methods of

engagement and information on how their

interests have been taken into account in Board

decision-making, can be found on pages 35 to

38 of the Strategic Report.

Our Section 172(1) Statement on page

34provides further insight into how the

Boardconsiders and contemplates the

interestsof stakeholders.

Shareholder engagement

Throughout the year, the Board engaged with

Ibstock shareholders through dedicated investor

meetings and investor visits including, as part of

the Group’s annual ﬁnancial calendar, the CEO

and CFO meetings with analysts and investors

following the announcement of the full-year

and half-year results. Other meetings are

arranged as and when requested. During the

2025 financial year, we held over 120 meetings

with groups of existing and potential investors.

In addition to this formal interaction, investors

meet with the Chair and other members of the

Board on a more individual basis. The Chair

seeks regular engagement with major

shareholders in order to understand their views

on governance and performance against the

Group’s strategy, whilst the Committee Chairs

also engage on signiﬁcant matters related to

their area of responsibility. The SID was

available to shareholders throughout the year

should they have had any concerns that contact

through the normal channels had failed to

resolve or for which such contact is

inappropriate. No such issues were raised

through contact with the SID during 2025.

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Ibstock Plc | Annual Report and Accounts 2025

Board leadership and company purpose continued

Shareholder engagement continued

The Chair ensures that the whole of the Board

has a clear understanding of the views of

shareholders. There is an effective ﬂow of

communication between the Board and all

shareholders, particularly with regard to

business developments and ﬁnancial results.

The Company’s brokers prepare reports that

provide anonymised objective feedback

received from investors following meetings with

management. The reports are shared with all

members of the Board, who act upon the

feedback as necessary. The CEO also provides

feedback at Board meetings on their

conversations with investors, which provides an

opportunity for all Non-Executive Directors to

develop a better understanding of the views of

our major shareholders.

Further information on engagement with shareholders

can be found in the stakeholder engagement section

on pages 35 to 38

Whistleblowing

Although the Audit Committee reviews the

operation of Ibstock’s whistleblowing

arrangements, the Board retains responsibility

and receives a consolidated report setting out

those material incidents that have been

reported under the Company’s Whistleblowing

Policy on a half-yearly basis. This provides

appropriate oversight of the arrangements in

place for our employees to raise legitimate

concerns, in conﬁdence, about any matter

including those related to ﬁnancial reporting,

health and safety or other improper conduct.

Having reviewed these reports, the Board

concurred with the actions taken by

management and was satisﬁed that this

provided an appropriate level of assurance that

conﬁrmed the system was working and that all

members of the workforce were familiar with

the procedures in place.

Annual Report

Our Annual Report is available to all

shareholders, who can opt to receive a hard

copy in the post, a PDF copy via email, or

download a copy from our website. We aim to

make the document as accessible as possible

and welcome feedback on all of our reports.

In line with our sustainability ethos, we

encourage you to view a digital copy of our

Annual Report where possible. However, if you

require a hard copy of the Annual Report,

pleasecontact the Group Company Secretary.

Annual General Meeting (‘AGM’)

Our 2025 AGM was held on 15 May 2025,

atwhich 78% of our shareholders (by voting

capital) voted either in person, through the

Chair of the AGM as their proxy, or by

submitting their proxy forms electronically

orbypost. We were delighted to receive in

excess of 94% votes in favour for all of our

resolutions, including in relation to the

Directors’Remuneration Policy.

Ibstock’s 2026 AGM will be held on 21 May 2026

at 54 Hatton Garden, London, EC1N 8HN.

Any shareholder who wishes to ask a question

can do so in advance of the meeting. Please

email company.secretariat@ibstock.co.uk with

any questions prior to the start of the AGM.

Weendeavour to answer as many questions

aspossible and will respond by email if we

areunable to answer your question during

themeeting.

Details of the arrangements together with the

resolutions to be proposed at the AGM can be

found in the Notice of Meeting (‘Notice’). The

Notice, together with explanatory notes on the

resolutions to be proposed and full details of the

deadlines for appointing proxies, is provided to

all shareholders at least 20 working days before

the AGM, together with this Annual Report.

TheNotice and the Annual Report are also

available on our website at www.ibstock.co.uk.

Results of voting at the AGM are announced to

the London Stock Exchange following the

meeting and are then published on the

Company’s website.

Shareholders and other stakeholders are asked

to note that the Board is considering holding

the AGM from 2027 at the head office location

in Ibstock, Leicestershire, LE67 6HS.

Corporate website

The Company’s corporate website has a

dedicated investor section with Company

information and results, our Annual Reports,

results presentations (including webcasts) and

an investor news section, including information

that may be of interest to our shareholders.

Wecontinually monitor our website,

www.ibstock.co.uk, to ensure it is accessible

forour stakeholders.

Read more on our website

www.ibstock.co.uk/investors

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Board activities

The Board recognises the value of

maintaining close relationships with its

stakeholders, understanding their views

andthe importance of these relationships

indelivering the Group’s strategy and

purpose. The Group’s key stakeholders and

their differing perspectives are taken into

account as part of the Board’s discussions.

You can read more in the stakeholder

engagement section and our Section 172(1)

Statement on pages 34 to 38.

These pages offer an overview of the various

matters discussed by the Board at its meetings

and, whilst not intended to present an

exhaustive list of every item considered by the

Board, this information provides valuable

insightinto the nature and substance of the

discussions that take place in the boardroom

and highlights how activities remain focused

ondelivering our strategy.

Board meetings

The Board meets formally at least seven times

ayear, with at least two Board meetings held

ator near Group locations across the country.

During 2025, the Board held meetings at

Nostell and Weeford, which gave the Directors

an opportunity to meet with employees and

experience the Group’s culture ﬁrst hand.

Board meetings are structured around a clear,

carefully tailored agenda that is agreed upon in

advance by the Chair, CEO and Group Company

Secretary to ensure the efficient and effective

use of the Board’s time. This agenda balances

standing elements, such as mandatory reviews

of health, safety and environmental

performance, operational performance,

ﬁnancial performance and governance, legal

and compliance updates, with the ﬂexibility

toadd evolving matters as needed.

The Board is committed to a comprehensive

meeting schedule and is supported by the

Group Company Secretary, who facilitates this

process by providing full, timely information

andensuring compliance with all procedures.

This structure ensures sufficient challenge and

contribution from all Directors, who also have

the right to seek independent professional

advice at the Group’s expense if necessary

todischarge their responsibilities.

Details of the Directors’ attendance at the scheduled

meetings during the year can be found on page56

Section 172(1) approach

The needs of our different stakeholders as well

as the consequences of any decision in the long

term are well considered by the Board. This

includes those decisions that involve the

competing interests and priorities of our key

stakeholders. We remain clear on the overriding

duty to promote the success of the Company,

which is placed on the Board and other senior

managers within the Group and that conﬂicts

between differing interests can often arise.

It is acknowledged that it is not possible for all

of the Board’s decisions to result in a positive

outcome for every stakeholder group. When

making decisions, the Board considers the

Company’s purpose, vision and values, together

with its strategic priorities, and takes account

of its role as a responsible business. By doing

this, the aim is to ensure that decisions are

robust, sustainable and drive long-term success

for the Company.

Strength through clear

and balanced agendas

Examples of Board activity during the year can

be found on the following pages. All of these

areas involve a range of inputs from

stakeholders, which are communicated to the

Board in a variety of different ways. When

making each decision, the Board carefully

considered how it impacted the success of the

Group, its long-term (ﬁnancial and non-

ﬁnancial) impact and had due regard to the

other matters set out in Section 172(1)(a) to (f)

of the Companies Act 2006.

Read our Section 172(1) Statement on page34

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Ibstock Plc | Annual Report and Accounts 2025

Board activities continued

Strategy and growth Link to strategic pillars:

Against a backdrop of slower than expected market recovery, the Board spent a considerable

amount of time during 2025 discussing future plans to ensure the Group remained in the best

position to deliver long-term success of the business for its shareholders and wide range of

stakeholders.

At the dedicated Strategy Meeting, the Board received a series of presentations from the ExCo,

members of senior management and external advisers. Topics considered included the market

andeconomic environment, the competitive landscape and the broader pipeline for corporate

developments, alongside a review of the existing strategy and progress against targets

previouslyset.

The outputs of the discussions fed into the strategic plan, which was subsequently presented by

theCEO and Interim CFO for the Board to review and challenge, before making a decision as to

whether it should be adopted for 2026.

Stakeholders considered:

@ Investors – positive performance against

strategy to ensure business resilience.

@ Customers – continued provision of

high-quality products.

@ Employees – ensuring the workforce has

theright skills to deliver the strategic plan.

@ Communities – the impact of our operations

on the local environment.

@ Government and regulators –

developingastrategy that complies

withallrelevant regulations.

Key decisions made:

@ Approved the disposal of the Rooﬁng business

and certain other assets to strengthen the

Company balance sheet.

Financial Link to strategic pillars:

The Board receives a wealth of ﬁnancial data on the Group’s trading and ﬁnancial position for

historic periods, as well as forward-looking forecast and budgets.

The Board reviewed the draft 2026 budget presented by management and challenged the

assumptions that had been used in its formation. Action was taken to address the Board’s

comments prior to a subsequent version of the 2026 budget being tabled for approval.

Longer-term plans and information on the Group’s banking relationships and shareholders is also

provided to the Board on a regular basis.

During the year, the Board oversaw the planned reﬁnancing of the Group’s existing debt facilities,

which involved considering key factors such as quantum, tenor, syndicate composition and timing.

The Board reviewed the indicative terms before agreeing to proceed with any renewal.

The Board is conscious of the importance of the ordinary dividend as an income stream for many of

our shareholders and, taking into account the ﬁnancial position of the Company and underpinned

by the continued conﬁdence in the ﬁnancial strengths and prospects of the business, the Directors

decided that it was appropriate to pay interim and ﬁnal dividends totalling 3.0 pence per share.

TheBoard keeps the dividend policy under review to ensure that it remains appropriate and

continues to be in the interests of the Company’s other stakeholders.

Stakeholders considered:

@ Investors – return on investment and continued

viability of the Group.

@ Employees – many employees or past-

employees are also shareholders.

@ Government and regulators – ensuring

wepaythe correct amount of tax and

continuetooperate in line with our Tax

Strategy Statement.

@ Defined Benefit Pension fund members and

Trustees – potential impacts on the long-term

security of the pension fund.

Key decisions made:

@ Approved the reﬁnancing arrangements for

the£125 million Revolving Credit Facility.

@ Approved the interim dividend and

recommended the ﬁnal dividend to

shareholders.

@ Approved the Viability Statement and

GoingConcern Statement. Read more on

pages 53 to 54.

@ Approved the Group’s Tax Strategy Statement.

@ Approved the proposed reappointment

ofDeloitte as External Auditor, following a

tender process.

Sustain Innovation Growth

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Ibstock Plc | Annual Report and Accounts 2025

Board activities continued

Risk management and internal control Link to strategic pillars:

Following a detailed review by the Audit Committee, the Board reviews the Group’s approach to risk

management, its risk appetite and the principal risks and uncertainties twice a year.

With guidance from the Audit Committee, the Board reviews the internal risk management

framework and internal controls.

The Board and its Committees receive deep dives into areas of principal and emerging risks and,

during the year, these covered topics including cyber security and tax.

Stakeholders considered:

@ Investors – assurance that the business is

aware of and can mitigate the impact of

potential risks.

@ Employees – colleagues play a vital role in

maintaining an effective internal control

framework within the business.

Key decisions made:

@ Approved the principal risks and statement on

risk management and internal controls to be

included within the Annual Report.

Governance and compliance Link to strategic pillars:

As part of its succession planning arrangements, the Board appointed Richard Akers as

Non-Executive Director and Chair Designate ahead of Jonathan Nicholls’ retirement at the end

ofthe AGM in May 2025.

Formal updates on governance are provided by the Group’s advisers, and the Board receives updates

on other major legal, governance or compliance developments at each meeting through the Group

Company Secretary.

An internal Board Performance Review was undertaken during the year. The Chair presented a

report to the Board setting out the ﬁndings and a number of minor recommendations. The Board

discussed the report and agreed an action plan, which is being closely monitored. Read more on

page 73.

The Board and Audit Committee approved a proposal to refresh the governance and compliance

framework, to ensure the Group continued to meet its obligations in the future and support

colleagues in fulﬁlling their roles. The Board received updates on this proposed new framework and

its implementation across the Group, approving related polices where required.

Stakeholders considered:

@ Investors – strong and skilled leadership team

to run the Group and safeguard the

investments made.

@ Customers – dealing with a business that is

managed with integrity and demonstrates

ethical behaviour.

@ Government and regulators – good governance

practices in place to support compliance with

listed company requirements such as

transparent reporting.

Key decisions made:

@ Approved the appointment of Richard Akers as

Non-Executive Director and Chair Designate.

@ Approved the action plan to address

recommendations arising from the 2025 Board

Performance Review.

@ Approved a suite of governance policies and

documentation including a Governance

Manual, the Schedule of Matters Reserved to

the Board, Terms of Reference for the

Committees, Chair, CEO and CFO and the

delegation of authority.

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Ibstock Plc | Annual Report and Accounts 2025

Why does culture matter

to the Board?

All Directors are expected to act with integrity, lead

by example and promote the desired culture that

will enable us to achieve our purpose, live by our

values and deliver our strategy.

Culture drives effective thinking, behaviour and

action, and supports inclusion where colleagues

collaborate to foster the long-term success of our

business and the best possible outcomes for our

stakeholders, both now and in the future.

It is therefore crucial that culture is aligned with our

purpose, values and strategy.

Culture is underpinned by our Code of Business

Conduct and is continually assessed by the Board

through a number of activities.

How does the Board assess culture

to ensure it is aligned with our

purpose, values and strategy, and

that it has been embedded

throughout the Group?

The Board spends a signiﬁcant amount of time

engaged in activities that provide insight into the

Group’s culture. Through this engagement with

ourpeople, the Board can observe how the culture

is established throughout the Group, aligned

acrossteams and demonstrated by each and

everycolleague.

Board activities continued

Culture

Employee voice

The Listening Post, an employee forum comprising

members of the Board, the CEO and employee

representatives, is our chosen method of engagement

with the workforce. Whilst not one of the methods set

out in the Code, the Listening Post is a combination of

being a workforce advisory panel with Non-Executive

Director representation.

Directors who have attended the Listening Post provide

feedback at the next Board meeting on what was

discussed by and heard from colleagues.

The Board receives feedback from the workforce on the

various Group-wide initiatives in place to enable

two-way inclusive dialogue and facilitate open and

effective communication. The Board uses this

information to satisfy itself that these well-established

communication and engagement mechanisms remain

effective and well utilised and cover the full breadth of

the business.

Employee engagement survey

The Board reviews the results of the employee

engagement survey and receives data on how

engaged our workforce is compared to our peers

and how the Group’s values link to our purpose and

affect colleague behaviours.

The Board places great importance on understanding

the strengths and opportunities identiﬁed by

colleagues, and actions arising from survey results are

monitored through to completion.

Employee attendance at meetings

Colleagues are invited to attend Board and Committee

meetings and strategy sessions to discuss their reports

and deliver presentations when appropriate. This allows

the Board to interact directly with colleagues to share

thoughts and pose questions on the colleagues’ areas

of expertise.

Site visits

Directors frequently undertake site visits to gain further

insight into our culture and meet colleagues whilst

observing the Group’s operations in action.

These site visits provide the opportunity to observe

thecommitment and dedication of our people,

whilst also increasing the Board’s understanding

ofhow thesystems and processes we have in place

support ourworkforce to deliver consistent

operational performance.

Directors are able to draw on their experiences

observed first hand as part of their discussions

on culture.

Health, safety and environment (‘HSE’)

HSE is a crucial part of the Group’s culture, and every

meeting starts with a ‘Safety Share’ for anyone

present to share important learnings or reminders.

This is also true of Board meetings, with a detailed

update on HSE provided at the beginning of every

Board agenda covering progress relative to targets,

updates on new projects and initiatives, and

analysis of any incidents. This allows the Board to

monitor the development and implementation of

initiatives to improve safety as well as the Group’s

progress in completing safety actions.

Content of Board reports is reinforced through

Director attendance at the Listening Post and

during factory visits, which provide opportunities

for individual Directors to receive feedback ﬁrst

hand on the HSE culture. Directors are also invited

to attend Safe Start sessions held across our sites

every January.

The CEO and senior leaders continuously monitor

the Group’s safety performance, starting all internal

communications with a focus on driving HSE

prioritisation throughout the Group. The Group

recognises factories that meet key milestone dates.

As part of the Board’s plans for 2026, each member

of the Board will be asked to conduct one HSE

specific site visit during the year.

Workforce policies and practices

The Remuneration Committee and Board review,

at least annually, the wider workforce policies and

practices to ensure they remain consistent with

the Group’s values and support its long-term

sustainable success in light of its obligations under

the Code.

Read more about how we invest in and reward our

people on page 46 and in the Directors’

Remuneration Report from page 91.

e-learning

Under the enhanced governance and compliance

framework, Board members will complete the same

mandatory e-learning modules as colleagues, covering

topics including our Code of Business Conduct,

anti-bribery, anti-fraud and competition law policies.

Richard Akers talks with colleagues on site

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Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Division of responsibilities

There are clear divisions of

responsibility within the

governance framework,

including those between the

Executive and Non-Executive

Directors. This ensures

accountability, oversight and

constructive challenge.

Chair

Richard Akers

The Chair is responsible for the leadership and effectiveness

of the Board. The Chair, with the assistance of the CEO and

the Group Company Secretary, sets the agenda for Board

meetings, manages the meetings (in conjunction with the

Group Company Secretary) and facilitates open and

constructive dialogue during those meetings. The Chair

may also hold meetings with the Non-Executive Directors

without the CEO and Interim CFO being present.

Chief Executive

Officer (‘CEO’)

Joe Hudson

The CEO has specific responsibility for recommending

the Group’s strategy to the Board and for delivering

thestrategy once approved. In undertaking such

responsibilities, he is supported by the ExCo and other

colleagues. The CEO and Interim CFO monitor the

Group’s operating and financial results and direct the

day to day business of the Group. The CEO is also

responsible for the recruitment, leadership and

development of the ExCo.

Independent

Non-Executive

Directors

Peju Adebajo

Nicola Bruce

ClaireHawkings

Justin Read

The Non-Executive Directors provide an external

perspective, sound judgement and objectivity to the

Board’s deliberations and decision-making. With their

diverse range of skills and expertise, they support and

constructively challenge the Executive Directors and

monitor and scrutinise the Group’s performance

againstagreed goals and objectives. The Non-Executive

Directors are also responsible for determining

appropriate levels of Executive remuneration,

appointingand removing Executive Directors, and

succession planning through their membership of the

Remuneration and Nomination Committees. The

Non-Executive Directors together with the Chair meet

regularly without any Executive Directors being present.

Senior

Independent

Director (‘SID’)

Louis Eperjesi

The SID provides advice to the Chair and serves as an

intermediary for the other Directors and shareholders.

The Non-Executive Directors meet without the Chair

present at least annually to appraise the Chair’s

performance, and on other occasions as necessary.

Chief Financial

Officer (‘CFO’)

Simon Bedford

(Interim CFO)

The Interim CFO is responsible for the financial matters

in the Group. He supports the CEO in the achievement

ofthe Group’s strategic objectives and manages the

relationships with Ibstock’s investors and analysts.

Further information can be found in the Group Financial

Review on pages 29 to 33.

Group Company

Secretary

Nick Giles

The Group Company Secretary supports and works

closely with the Chair, the CEO and the Chairs of the

Board Committees in setting agendas for meetings of

the Board and its Committees. He ensures accurate,

timely and clear information flows to and from the

Board and the Board Committees, and between

Directors and senior management. In addition, he

supports the Chair in designing and delivering Directors’

induction programmes, the Board and Committee

performance evaluations and advises the Board on

corporate governance matters and Board procedures,

and is responsible for administering the Share Dealing

Code and the AGM.

The Directors of all Group companies, as well as the

Board, have access to the advice and services of the

Group Company Secretary, although independent

external legal and professional advice can also be taken

when necessary to do so. Furthermore, each Committee

of the Board has access to sufficient and tailored

resources to carry out its duties. The appointment and

the removal of the Group Company Secretary is a matter

for the Board as a whole.

Strength and clarity

Scan the QR code below to view the

Terms of Reference forkey Board roles

www.ibstock.co.uk/investors/corporate-governance

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Ibstock Plc | Annual Report and Accounts 2025

Composition, succession and evaluation

Board composition

At the year end, our Board comprised the Chair

(who was considered independent on

appointment), ﬁve Independent Non-Executive

Directors and one Executive Director, and this

remains the case as at the date of this report.

The Board and its Committees beneﬁt from a

combination of skills, experience and knowledge

drawn from across several industries and

functional roles. Appointment dates and the

range of skills and experience of each Director

can be found in their individual biographies on

pages 58 to 59.

The Chair, SID and Non-Executive Directors are

each appointed for a three-year term, subject

toannual re-election by shareholders following

consideration of the annual Board Performance

Review outputs. Directors serving over six years

on the Board are subject to a particularly

rigorous review.

The composition and effectiveness of the Board

and its Committees are subject to regular review

by the Nomination Committee, which considers

the balance of skills, tenure, experience and

independence of the Board, in accordance with

the Board Diversity Policy, which is available on

our website at www.ibstock.co.uk.

The Nomination Committee leads the process

for the appointment of new Directors to the

Board. Appointments are made on merit and

measured against objective criteria set with

regard to the beneﬁts of a diversiﬁed Board.

Proposed appointments result from a formal,

rigorous and transparent procedure, with the

ﬁnal decision on any appointment remaining

amatter reserved for the Board.

Further information on the work of the Nomination

Committee can be found on pages76 to 80

Directors’ skills and experience

An effective Board requires the right mix of skills

and experience and, as can be seen from the

individual biographies and the Board skills

matrix on page 56, our Directors contribute

adiverse range of backgrounds, skill sets and

experience that, combined together, produce

aneffective team, focused on promoting the

long-term success of the Group.

The skills matrix is reviewed to ensure that the

right balance of skills and experience is in place

to enable the effective oversight of the

Company and execution of our strategy.

The balance of skills and experience ensures

that no one individual or small group of

individuals dominates the Board’s decision-

making processes. The Board and Nomination

Committee also review Committee membership

annually to ensure that undue reliance is not

placed on individuals.

All Directors, with the exception of Justin Read,

who will step down from his role at the

conclusion of the AGM, intend to submit

themselves for re-election at the 2026 AGM.

The Notice of Meeting sets out the reasons why

the Board considers the Directors’ respective

contributions continue to be important to the

Company’s long-term sustainable success.

Diversity

A diverse organisation beneﬁts from

differencesin skills, regional and industry

experience, background, ethnicity, gender,

sexual orientation, religion, belief and age,

aswell asculture and personality.

The Board remains focused on promoting

broader diversity and creating an inclusive

culture across the organisation, including on

theBoard itself. More details about the Board

Diversity Policy and performance against its

targets in relation to membership of the Board

and its Committees can be found in the

Nomination Committee Report.

Development, training and resources

The environment in which we operate is

continually changing. It is therefore important

that our Executive and Non-Executive Directors

remain aware of recent, and upcoming,

developments and keep their knowledge and

skills up to date, so the Board continues to

operate effectively and support delivery of our

long-term strategy.

The Board as a whole, and Directors individually,

are able to discuss training topics with the

Chairand the Group Company Secretary,

andadditional training is made available to

members of the Board in accordance with

theirrequirements.

The Nomination Committee reviews the

training requirements of the Board and agrees

upon a suitable regime for training and

information ﬂows to enable the Directors to

satisfy their training and development needs.

Information provided to the Board during the

year included updates on developments

relating to corporate governance and

sustainability, the regulatory framework and

accounting matters.

The Chair and the Group Company Secretary

continue to identify broader areas of training

for the Board as a whole and the Chair discusses

and agrees training opportunities with

individual Directors as required.

Strength in our people

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Ibstock Plc | Annual Report and Accounts 2025

Composition, succession and evaluation continued

Development, training and resources

continued

Directors may, at the Company’s expense, take

independent professional advice and are

encouraged to continually update their

professional skills and develop further

knowledge of the business. As required, we

invite professional advisers and subject matter

experts to provide in-depth updates.

Directors also have access to our online Reading

Room, which is continually reviewed and

updated. This library of information includes

governance documents, training and

development content, a reports and

announcements section, investor information

and copies of analyst reports. It also contains

afurther reading section that covers updates

and guidance on changes to legislation and

corporate governance best practice.

Succession

Along with ensuring an appropriate mix of skills

and experiences, the composition of the Board

is also informed by the need for orderly

succession for Board and Committee roles.

The Board and the Nomination Committee

spent a signiﬁcant amount of time considering

Board composition during the course of the year.

This was key in developing the speciﬁcation for

Board recruitment activity that was required

during the year.

As announced on 25 March 2025, Jonathan

Nicholls retired from the Board following the

conclusion of the AGM on 15 May 2025 having

served his maximum term of office. Following

the completion of the process to recruit a

successor, Richard Akers was appointed as

anIndependent Non-Executive Director on

5May 2025 and assumed the role of Chair on

15May 2025. Jonathan Nicholls, as outgoing

Chair, was not involved in the appointment

ofhis successor.

Chris McLeish left the Group in October 2025

and Simon Bedford was appointed Interim

CFOuntil the appointment of a permanent

successor. This process, whilst ongoing, is

nearing completion.

Further detail can be found in the Nomination

Committee Report on pages76 to 80

Induction

All new Directors receive a detailed, tailored

induction programme upon joining the Board.

This includes one-to-one meetings with the Chair

and each of the existing Non-Executive Directors.

One-to-one meetings are also arranged with the

Executive Directors and the Group Company

Secretary, along with other members of the ExCo

and senior management. New Directors also

meet members of the operational teams and

visit key sites to ensure they gain a detailed

understanding of our businesses and have a

chance to experience our culture ﬁrst hand.

Read about Richard Akers’ induction opposite.

Evaluation

Our annual Board Performance Review provides

the Board and its Committees with an

opportunity to consider and reﬂect on its

effectiveness, including the quality of its

decision-making, its strategic contribution and

its oversight of culture. The review also provides

dedicated time for individual Directors to

consider their own input and performance.

We welcomed Richard to the Board on

5May2025, and his extensive induction

programme comprised a number of activities

covering a range of areas across the business.

Introductory meetings were held in the ﬁrst

few days and weeks to ensure that Richard

was able to gain a real understanding of our

purpose, values, culture and strategy, along

with our core business activities.

@ CEO, CFO, Group Company Secretary

andother ExCo members

@ Internal Auditor

@ External Auditor

@ Remuneration consultants

@ Financial advisers and brokers

Deep dive sessions were arranged to enable

Richard to explore in detail key areas of focus.

@ Internal controls

@ Risk management

@ Governance and compliance

@ Operational performance and KPIs

@ Financial performance and business plan

@ Investor relations

Richard undertook a number of site visits to

observe the Group’s operations in action and

meet colleagues to gain further insight into

our culture and enhance his understanding

ofthe organisation as a whole.

@ Atlas Factory, Aldridge, West Midlands

@ Nostell Factory, West Yorkshire

@ Forticrete, Leighton Buzzard, Bedfordshire

@ Eclipse and Cebastone Factories,

Ibstock, Leicestershire

@ Coltman Factory, West Midlands

@ Throckley and Birtley, Northumberland

@ Cattybrook, Gloucestershire

An open invitation was also extended to all

members of the Board to attend these visits.

Richard Akers’ induction

Richard Akers receives a demonstration of operations

Strategic Report

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Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Composition, succession and evaluation continued

Evaluation continued

In consideration of the FRC’s Guidance on

Board Effectiveness and the Chartered

Governance Institute’s Principles of Good

Practice relating to external reviews, the Board

has adopted a three-year assessment cycle,

designed to build on momentum from prior

years, whilst also ensuring a rigorous and

balanced approach to implementing

incremental improvements.

2024 Board Performance Review –

updateon recommendations

Recommendation Action taken

Clarify and refine

strategic milestones

and any associated KPIs

to enable improved

monitoring of Group

strategy.

North Star differentiators

have been introduced to

address.

Review the current cycle

and areas of business

discussed at meetings

and consider whether

this remains

appropriate or needs

amendment.

The approach to meeting

planning and cadence of

topics has been

considered and refreshed.

Consider including deep

dive divisional reviews,

other key business

issues, stakeholder

sessions and hot topics.

Additional items have

been added to the annual

calendar with sessions

scheduled to take place

during and outside of

meetings.

Introduce more regular

Board updates in

months where there are

no scheduled meetings.

A monthly update from

the CEO and Interim

CFO has been

introduced to provide

more regular interface

with the Non-Executive

Directors.

Board performance review cycle

Year 1 (2023)

External review

Externally led review resulting in

acomprehensive, independent

assessmentof the Board, Committees

andindividual Directors.

Year 2 (2024)

Internal review

Internally led review focusing on agreed

key topics following recommendations

from the external review.

Year 3 (2025)

Internal review

Internally led review focusing on overall

progress following implementation of

recommendations from previous reviews.

2025 Board Performance Review – process

Having completed an external evaluation

during the 2023 ﬁnancial year, the process once

again this year was internally facilitated, and

supported by the Group Company Secretary.

Aquestionnaire was completed by all members

of the Board, which included questions around

the Group’s strategy, effectiveness and

accountability, as well as the Board’s

composition, diversity and how effectively

Directors work together to achieve the Group’s

objectives. The process provided the Board with

the opportunity to make speciﬁc comments in

response to a series of open questions. The

results were collated by the Group Company

Secretary and a report provided to the members

of the Board for review.

The SID spoke with the Non-Executive Directors,

in the absence of the Chair, to appraise the

Chair’s performance, taking into account the

views of Executive Director. The review

concluded that the Chair’s performance

continued to be effective and that he

demonstrates commitment to the role.

The SID informed the Chair of the

review’sﬁndings.

The Chair met with all Non-Executive Directors

individually to conduct an appraisal of their

performance. The reviews concluded that the

Non-Executive Directors’ contributions

continued to be effective, and they each had

demonstrated commitment to their roles.

2025 Board Performance Review – findings

The review identiﬁed many positive aspects of

the current operation of the Board and showed

that the Board is effective in most areas, is well

led, and that the Directors challenge

constructively. The evaluation concluded that

the Board and its Committees continued to

provide effective leadership and exert the

required levels of governance and control.

Each Director was deemed to be independent,

contribute effectively and demonstrate

commitment to his or her role, and these

ﬁndings were fully considered when making

recommendations in respect of the

reappointment of individual Directors.

The minor recommendations arising from the

review that were discussed by the Board are set

out below. The Nomination Committee and

Board will continue to oversee the progress

made in relation to the agreed actions over

2026 to ensure their timely completion.

Strategy Governance framework Stakeholder engagement Board reporting

Finalise strategic actions

by setting clear

milestones and agreeing

accountability and

bolster reporting to the

Board to enable the

tracking of progress.

Keep the Committee

structure under review

and undertake an

analysis of skills required

from and training needed

for Board members as

the businessdevelops for

the future.

Enhance the Board’s

oversight through more

regular updates, deep

divesandvisits.

Identify opportunities to

make reporting more

succinct and develop a

clearer line of sight to key

business issues to

facilitate effective

discussions at Board

meetings.

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Audit, risk and internal control

Audit Committee

The Board has established an Audit Committee

to which it has delegated a number of

responsibilities. Information on the Committee’s

composition, its role, together with information

regarding the principal activities that it carried

out during the year, are included in the Audit

Committee Report on pages 83 to 90.

The Board considers that the Chair of the Audit

Committee, Justin Read, possesses the level of

recent and relevant ﬁnancial experience

required and that the Committee, as a whole,

has competence relevant to the sector in which

the Group operates. Additional information on

the skills and experience of the members of the

Audit Committee can be found in their

individual biographies on pages 58 to 59.

Financial and business reporting

The Board has established arrangements to

ensure that reports and other information

published by the Group provide a fair, balanced

and understandable assessment of Ibstock’s

position and prospects. The Strategic Report on

pages 1 to 54 explains the Group’s business

model and the strategy for delivering the

objectives of the Group, and statements on the

Group as a Going Concern and its Viability are

set out on pages 53 to 54.

The strategic plan, annual budget and material

investment proposals are formally prepared,

reviewed and approved by the Board.

A clearly deﬁned organisation structure is in

place, with clear lines of accountability and

appropriate division of duties. The Group’s

delegation of authority specifies authorisation

limits for individual managers with all material

transactions within defined parameters being

approved by the Board.

Consolidated ﬁnancial results, including a

comparison with budgets and forecasts, are

reported to the Board at each meeting, with

variances being identiﬁed and understood so

that mitigating actions can be implemented,

where appropriate. Monthly divisional meetings

are held, attended by members of the ExCo,

representatives from the Group Finance

function and other senior management. These

meetings provide an opportunity for a detailed

review of performance and to identify any

issues or trends.

Half-year and annual consolidated accounts are

prepared and veriﬁed by the Finance team and

reviewed by the CEO and Interim CFO and the

External Auditor. The accounts are then

considered by the Audit Committee, which makes

a recommendation in respect of their approval to

the Board. The Board then reviews and approves

the accounts prior to the announcement of the

half-year and annual results.

The Board considers that the processes

undertaken by the Audit Committee are

appropriately robust, effective and in

compliance with the guidelines issued by the

FRC. During the year, the Board has not been

advised by the Audit Committee on, or

identiﬁed itself, any failings, fraud or

weaknesses in internal control that have been

determined to be material in the context of

theﬁnancial statements.

Further details of the review work carried out

bythe Audit Committee in relation to the 2025

Annual Report can be found in the Audit

Committee Report.

Viability Statement

The approach to viability and the Viability Statement

itself are set out on pages53 to 54

Risk management and internal

controlsystems

The Board has overall responsibility for the

Group’s risk management and internal control

framework, including the setting of risk appetite.

The Audit Committee has a key role to play in

overseeing the operation of this framework and

advising the Board.

The Board monitors Ibstock’s risk management

and internal control systems and reviews their

effectiveness, speciﬁcally that:

@ there is an ongoing, systemised process for

identifying, evaluating and managing the

principal risks faced by the Group;

@ this system has been in place for the year

under review and up to the date of approval

of this Annual Report; and

@ the system is regularly reviewed by the Board.

During the year, the Board has directly, or

through the Audit Committee, overseen and

reviewed the development and performance of

risk management activities and practices and

the systems of internal control in place across the

Group. As a result, the Board is satisﬁed that the

risk management and internal control systems

that are in place remain robust and effective.

The Board delegated the responsibility for

conducting the work required for it to provide

the ‘fair, balanced and understandable’, Going

Concern and Viability Statements to the Audit

Committee. In conducting this work, the Audit

Committee acts on behalf of the Board, and its

activities remain the responsibility of the Board.

The relevant Board statements on these

matters are set out on pages 111 to 114. The

principal risks and uncertainties are set out on

pages 48 to 52.

Strength through

appropriate controls

Strategic Report

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Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Audit, risk and internal control continued

Risk management cycle

Risk appetite

Risk appetite is deﬁned as the amount and type

of risk Ibstock is willing to pursue or retain in order

to meet our strategic objectives. Our assessment

of risk appetite is guided by our purpose and

informed by our strategic objectives. It is used

asa measure against which all of our current

andproposed activities are tested.

Risk appetite is reviewed annually to ensure

thatit remains aligned with our strategy.

Risk management framework

Each part of the business is expected to comply

with the Group’s risk management framework

and to report regularly on its risk registers and

key risk indicators. A mechanism exists to

extend the risk management framework to any

signiﬁcant new business that is acquired or

established immediately upon acquisition or

start-up. Oversight of the risk management

framework and process is provided by the Group

Financial Controller, divisional teams, the Audit

Committee and, ultimately, the Board.

Risk management assessment process

Our assessment of risk is approached from a

top-down and a bottom-up perspective.

Through the ExCo, we identify Group enterprise

risks, which includes those that directly link to

our business model and strategy. At a divisional

level, each business identiﬁes strategic and

operational risks, which are captured on detailed

risk registers. Divisions are also required to ensure

that risks designated by the Group to be ‘critical’

risks are actively managed. These are risks where

compliance with a minimum level of control is

considered to be non-negotiable (an example of

a ‘critical’ risk is health and safety). Best practice

in respect of identifying and mitigating ‘critical’

risks is shared across the Group.

All risks are assessed in respect of likelihood and

impact based on the materiality matrix

included in the framework. Risks are then scored

on a mitigated and unmitigated basis and rated

as high, medium or low. Consideration is given

to whether risks are within or outside appetite

and particular attention is given to the controls

that are in place and the actions being taken to

mitigate the risks. Incidents are recorded and

reported on at the relevant risk meetings.

Risk registers are reviewed at divisional risk

meetings, with the ExCo and the Audit

Committee having regular oversight of both the

Group enterprise risks and those identiﬁed by

each division.

Internal control

The Group’s internal control systems are

designed to manage, rather than eliminate, the

risk of failure to achieve business objectives.

They are based on assessment of risk and a

framework of control procedures to manage

risks and to monitor compliance with

procedures. The internal control systems are

designed to meet the Group’s particular needs

and the risks to which it is exposed and, by their

nature, can provide only reasonable, not

absolute, assurance against material loss to the

Group or material misstatement in the ﬁnancial

accounts. The overall responsibility for the

Group’s system of internal control and for

reviewing its effectiveness rests with the Board,

but this responsibility has been delegated to the

Audit Committee. Further details of the review

and monitoring procedures can be found within

the Audit Committee Report on pages 83 to 90.

The Group employs a third party specialist, RSM,

to provide Internal Audit services. Internal Audit

acts as the third line of defence. In order to

ensure the independence of the Internal Audit

function, RSM’s primary reporting line is to the

Chair of the Audit Committee.

The Internal Audit function fulﬁls its role and

responsibilities by delivery of the annual,

risk-based audit plan. There are no restrictions

on the scope of Internal Audit’s work.

A report is issued after each audit, which

provides an opinion on the control environment

and details any issues found. Internal Audit then

works with the businesses to agree remedial

actions, which are tracked to completion.

RSM attend and report to every Audit

Committee meeting.

Internal and External Audit

Details of the Internal Audit function and the

External Auditor are provided in the Audit

Committee Report. The Board and Audit

Committee are satisﬁed that the necessary

policies and procedures are in place to ensure

the independence and effectiveness of both.

Risk management cycle

Risk appetite Risk management

framework

Risk management

assessment process

Remuneration

The Remuneration Committee

The Board has established a Remuneration

Committee, which has delegated

responsibility for determining the policy

forExecutive remuneration and setting

remuneration for the Chair of the Board,

CEO and members of the ExCo including

the Group Company Secretary. When

doing so, the Remuneration Committee

takes account of wider workforce

remuneration and related policies and the

alignment of incentives and rewards with

culture. Further details of the work of the

Committee are set out in the Directors’

Remuneration Report on pages 91 to 110.

Remuneration Policy

In line with the Remuneration Policy

approved by shareholders at the 2025

AGM, details of the remuneration packages

of individual Directors are set out on pages

102 to 110. During the year, no individual

Director was present at a meeting when

their own remuneration was being

discussed or determined.

Strategic Report

Governance Report

Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Nomination Committee Report

Strength through

leadership

Richard Akers

Chair of the Nomination Committee

I am pleased to present my ﬁrst report on

behalf of the Nomination Committee, setting

out the key activities undertaken throughout

2025 and our priorities for 2026.

The Committee leads the process for

appointments, ensures plans are in place for

orderly succession to both the Board and senior

management positions, and oversees the

development of a diverse pipeline for succession.

This report highlights the vital work undertaken

by the Committee to ensure that the Board

continues to have the appropriate balance of

skills, experience, knowledge and diversity to

provide the Group with the strong leadership

required to support its workforce and deliver

long-term success.

Activities in 2025

The Committee’s main activities during the

yearincluded:

@ Reviewing and supporting initiatives to

improve diversity, economic and social

beneﬁtthroughout the Group, given the

ongoing focus on diversity and inclusion for

the Group as a leader within the building

sector. Read more on page 46.

@ Considering succession plans for members of

the Board, including the Chair, and ExCo, and

reviewing the talent pipeline within the Group,

with particular focus on senior management.

@ Assisting the Board in its consideration of

conﬂicts of interest and independence issues,

alongside the outputs of the Board

Performance Review, resulting in a

recommendation to the Board in respect of

those Directors continuing in office. Read

more on pages 71 to 72.

@ Overseeing the arrangements for my

induction programme, upon my appointment

to the Board in May 2025.

@ Managing the search for a new CFO and an

Independent Non-Executive Director, with

the support of Teneo, a specialist third party

recruitment specialist.

Priorities for 2026

The Committee’s priorities for next year include:

@ Completing the search for and appointing

anew CFO.

@ Continuing to monitor progress against

theGroup’s diversity targets and

inclusioninitiatives.

@ Overseeing the induction and handover

tothe new Chair of the Audit Committee.

I would like to thank the members of the

Committee for their continued commitment

throughout the year, for the open discussions

that take place at our meetings, and for

thecontribution they all provide in support of

ourwork.

Richard Akers

Chair of the Nomination Committee

Membership and attendance

The Committee’s membership comprises

the Chair of the Board (who was

considered independent on appointment)

and the Independent Non-Executive

Directors only.

The Committee is supported by the Group

Company Secretary. Other individuals,

suchas the CEO, members of senior

management and external advisers,

maybe invited to attend meetings as and

when appropriate.

Details of meeting attendance can be

found on page 56.

Key responsibilities

@ Develop and maintain a formal, rigorous

and transparent procedure for making

recommendations to the Board on

appointments and on the structure, size

and composition of the Board.

@ Ensure that planning is in place for

orderly succession of both the Board and

senior management positions.

@ Oversee the development of a diverse

pipeline of talent for succession.

@ Evaluate the balance of skills, diversity,

knowledge and experience of the Board.

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76Ibstock Plc | Annual Report and Accounts 2025

Nomination Committee Report continued

Key responsibilities continued

@ Prepare a description of the role and

capabilities required for a particular

appointment and lead the

recruitmentprocess.

@ Identify and nominate, for the approval

of the Board, candidates to ﬁll Board and

senior management vacancies, ensuring

that candidates have the necessary skills,

knowledge and experience to effectively

discharge their responsibilities.

@ Review the time commitment required

from Non-Executive Directors

andevaluate the membership

andperformance of the Board and

itsCommittees.

@ Ensure that reviews of the performance

of the Board and its Committees,

andindividual Directors, are

undertakenannually.

@ Recommend, where appropriate, the

re-election of Directors.

Committee performance

The Committee’s effectiveness was

considered as part of the internal Board

Performance Review. The Committee

scored highly overall and was considered

tobe operating effectively.

In our Annual Report:

@ Names and biographies of the

Committee members on pages 58 to 59

On our website www.ibstock.co.uk:

@ The Committee’s Terms of Reference

@ The Board Diversity Policy

Succession planning

The composition of the Board is constantly

under review with the aim of ensuring that it

has the depth and breadth of skills to discharge

its responsibilities effectively. The Committee,

through its oversight of succession planning,

applies a similar approach to the layer of

management that sits immediately below the

Board, the ExCo.

The Committee aims to ensure that the Board

and senior management are well balanced in

the skills and experience appropriate for the

needs of the business and the achievement of

the Group’s strategy. Furthermore, the

Committee ensures that the Board includes

Non-Executive Directors who are appropriately

experienced and are independent in character

and judgement.

To support this, the Committee has developed

aBoard skills matrix, which is used to better

understand training requirements, as well as

tounderstand the skills and experience

requirements that inform the Board’s succession

plans. The skills matrix is reviewed annually and

an overview of the skills and experience of our

Directors can be found on page 56.

Whilst we see long service on the Board as a

positive characteristic, the Board is mindful that

the Code indicates that Non-Executive Directors

should not serve for more than nine years and

Non-Executive Directors who have served over

six years should be subjected to a particularly

rigorous review. Such a review, in line with the

requirements of the Code, has been undertaken

by the Committee in relation to the

independence and commitment of Justin Read

since reaching his six-year tenure. On each

occasion, the Board remained satisﬁed that

Justin continued to act with the utmost

independence and considered that his

appointment remained in the long-term best

interests of stakeholders.

Recruitment and appointment

The Committee is responsible for identifying

and nominating, for the approval of the Board,

candidates to ﬁll Board vacancies as and when

they arise. The process, as set out in the

Committee’s Terms of Reference, is outlined

overleaf along with examples of how this has

been applied in practice.

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Nomination Committee Report continued

Succession planning continued

Recruitment and appointment continued

Evaluate the Board’s composition Appoint an independent search ﬁrm Identify suitable candidates

Recommend the appointment

totheBoard Deliver an induction programme

The process… As part of routine succession

planning activity and through

ongoing evaluation, the Committee

takes into account of balance of

skills, knowledge, independence,

experience and diversity on the

Board, including the balance of

Non-Executive Directors to

Executive Directors.

In light of this evaluation process,

should recruitment activity need

tobe undertaken, the Committee

prepares a description of the

roleand capabilities required of

theparticular appointment

andassesses the time

commitmentexpected.

Following a thorough in-person

assessment of providers in the

market, an independent search ﬁrm,

which is a signatory to the

enhancedvoluntary code of

conduct for Executive search ﬁrms,

isappointed to support with the

recruitment of an Independent

Non-Executive Director.

Formal interviews are led by the

Chair and SID, supported by the

Group Company Secretary, with

allBoard members meeting the

preferred candidate.

In identifying suitable candidates,

the Committee:

@ Considers candidates of different

genders and from a wide range of

backgrounds and experiences,

taking into account the beneﬁts

of diversity on the Board.

@ Considers candidates on merit

and against objective criteria, and

whether the candidate can meet

the Board’s independence

requirements where relevant.

@ Ensures that appointees have

enough time to devote to the

position and that any declarations

of interest do not pose a conﬂict.

The Committee considers the

selection and reappointment of

Directors carefully before making

arecommendation to the Board.

Non-Executive Directors and the

Chair of the Board are generally

appointed for an initial period of

three years, which may be renewed

for a further two terms.

Reappointment is not automatic at

the end of each three-year term.

All newly appointed Directors

undertake comprehensive, tailored

induction programmes, overseen

bythe Committee, which include

speciﬁc focus on key aspects of their

roles on the Board Committees.

…in action Through ongoing succession

planning, the Committee was able

to act in a timely manner ahead of

Justin Read’s scheduled retirement

from the Board due to his tenure

approaching nine years.

To assist with the search to appoint

a new Independent Non-Executive

Director to chair the Audit

Committee, the Committee

appointed Teneo

, a signatory to

thevoluntary code of conduct for

Executive search ﬁrms.

1 Other than the Group’s engagement of Teneo in

relation to the recruitment of Executive and

Non-Executive Directors, there is no connection

between the two companies.

The Committee ensured that the

recruitment process was conducted

in line with the Board Diversity

Policy, in particular that diverse

candidates from a wide variety of

backgrounds were included within

the shortlist.

Formal interviews were led by the

Chair and SID, supported by the

Group Company Secretary, with all

Board members meeting the

preferred candidate.

Martin Payne will join Ibstock on

30March 2026 and we look

forwardto welcoming Martin to

theBoard, Audit, Remuneration

andNomination Committees.

Further details on Non-Executive

Director induction programmes

canbe found on page 72, along

with an overview of Richard Akers’

recent induction.

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Ibstock Plc | Annual Report and Accounts 2025

Nomination Committee Report continued

Diversity and inclusion

Our current employee population reﬂects the

traditional nature of our industry across all

diversity characteristics, including age, race,

gender, sexual orientation and disability. We

acknowledge the challenge we face with a

higher percentage of men in factory-based

production roles. The Committee and Board

recognise the powerful advantages that a

diverse workforce can bring to a company and

are committed to ensuring that Ibstock is a

diverse, fair and inclusive place to work.

The Committee acknowledges and supports the

aims, objectives and recommendations outlined

in the FTSE Women Leaders Review and is aware

of the need to achieve an appropriate balance of

women on our Board and in senior positions

throughout the Group. The Committee also

acknowledges and supports the aims, objectives

and recommendations of the Parker Review on

ethnic diversity and the emphasis in the

Disclosure Guidance and Transparency Rules on

disclosure around diversity with regard to

aspects such as age, gender and educational

and professional background. As at the end

ofthe year under review, we are satisﬁed that

we are aligned with the recommendations of

both reviews.

Furthermore, the Committee is cognisant of the

FTSE Women Leaders Review recommendation

that FTSE 350 companies should have at least

one woman in the Chair or Senior Independent

Director role on the Board, and/or one woman

in the CEO or CFO role in the Company by the

end of 2025, and the associated Listing Rule

obligation to report against these in the

AnnualReport.

Following the appointment of Louis Eperjesi

asSenior Independent Director during 2023,

weno longer comply with the recommendation.

Asis standard practice for the Committee,

gender diversity will be taken into consideration

as part of future recruitment activity,

althoughall appointments will continue to

bebased on merit.

Diversity and Inclusion Policy

We believe that by providing a harmonious

working environment, all employees should be

able to maximise their potential and contribute

to our success.

Our Diversity and Inclusion Policy applies to

allemployees and supports our Diversity

andInclusion Strategy, which aims to

increasediversity and promote inclusion

within our workforce.

We continue to work with our recruitment

partners to ensure that we are able to attract

high-quality candidates from a wide range of

backgrounds, strengths and abilities. We recognise

that achievement of our strategic objectives is

reliant on the recruitment and retention of a

diverse and engaged workforce, and efforts in

this area will continue.

Both the Committee and Board received regular

updates in relation to diversity and inclusion

during the year, including an update on the

performance against the Group’s stated target

of increasing female representation in the

senior leadership group (comprising members

of the ExCo and their direct reports) to 40%

by2027 and for there to be 20% minority

ethnic representation in the senior leadership

group by2030. Whilst this latter target is not

completely aligned to the Parker Review

recommendation of a 2027 deadline, this

ambitious aim was felt to be appropriate for

theGroup at the point in time.

A gender and ethnicity breakdown of Directors,

senior managers (as deﬁned in the Code and

Companies Act 2006) and employees of the

Company as at 31 December 2025 can be

found on page 177.

Board Diversity Policy

The Board Diversity Policy, available through

ourwebsite, formalises the Board’s commitment

to appropriately diverse membership and

compliance with reporting regulations. It is

reviewed annually and approved by the Board

on the recommendation of the Committee.

The Committee retains the strong belief that

diverse Board and Committee membership

supports the Group’s strategy by bringing the

widest range of viewpoints and experience

possible to the debate.

We are committed to promoting equal

opportunities in employment and addressing

the balance, and as such apply this policy to all

Board and Committee recruitment activity.

The Committee adopts the objectives within

the policy to ensure a focus on ensuring gender

and ethnicity diversity at every stage of the

recruitment process, notwithstanding that

appointments are always based upon an

individual’s merit, suitability and ability to carry

out a role successfully. This was the case during

the recent recruitment for the new Chair and

Chair of the Audit Committee, and continues

tobe the case for the ongoing activity to

identify anew CFO.

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Ibstock Plc | Annual Report and Accounts 2025

Diversity and inclusion continued

UK Listing Rules Board Diversity Statement

On behalf of the Board, the Committee conﬁrms the position in relation to the diversity targets set

out in Listing Rule 6.6.6R(9)(a)) as at 31 December 2025:

Board diversity target Target met? Board diversity as at 31 December 2025

At least 40% of the individuals on the Board

of Directors are women.

42.9% of the individuals on the Board

of Directors are women.

At least one of the senior positions (Chair,

Chief Executive Officer, Senior Independent

Director, Chief Financial Officer) on the Board

of Directors is held by a woman.

None of the senior positions on the

Board of Directors are held by a

woman.

At least one member of the Board of Directors

is from a minority ethnic background (deﬁned

by reference to categories recommended by

the Office for National Statistics (‘ONS’)

excluding those listed, by the ONS, as coming

from a white ethnic background).

One member of the Board of Directors

is from a minority ethnic background.

In addition to the above, there is at least one individual on each Board Committee that is a woman

and at least one individual on each Board Committee who is from a minority ethnic background.

The Group collects diversity data from the Directors, ExCo members and wider workforce through

diversity data collection surveys. Detailed numerical information on the gender and ethnicity

representation on the Board and ExCo is set out below.

Diversity Disclosure (LR 6.6.6R(10))

Gender identity of members of the Board and Executive Committee as at 31 December 2025

Ibstock Plc Board Ibstock Plc Executive Committee

Number of Board

members

Percentage

of the Board

Number of

senior positions

on the Board

Number in

Executive

management

Percentage of

Executive

management

Men 4 57.1% 3 5 83.3%

Women 3 42.9% 0 1 16.7%

Not speciﬁed/prefer

not to say 0 0% 0 0 0%

Ethnicity of members of the Board and Executive Committee as at 31 December 2025

Ibstock Plc Board Ibstock Plc Executive Committee

Number of Board

members

Percentage

of the Board

Number of

senior positions

on the Board

Number in

Executive

management

Percentage of

Executive

management

White British or

other White (including

minority-white groups)

6 85.7% 3 6 100%

Mixed/Multiple

ethnic groups 0 0% 0 0 0%

Asian/Asian British 0 0% 0 0 0%

Black/African/

Caribbean/Black

British 1 14.3% 0 0 0%

Other ethnic group 0 0% 0 0 0%

Not speciﬁed/prefer

not to say 0 0% 0 0 0%

1 Following the departure of Chris McLeish from the Group in October 2025, Simon Bedford took on the role of Interim CFO. Simon has been

included within the Executive management figures in the above table, however, he has not been appointed as a Director of Ibstock Plc.

Therecruitment activity undertaken to identify and appoint a new CFO is nearing conclusion.

Nomination Committee Report continued

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Ibstock Plc | Annual Report and Accounts 2025

Sustainability Committee Report

Strength through

sustainable ambition

Claire Hawkings

Chair of the Sustainability Committee

As Chair of the Sustainability Committee, I am

delighted to introduce this report, which sets

outthe key activities undertaken throughout

2025 and our priorities for 2026.

The purpose of the Committee is to oversee

theGroup’s strategies, policies and performance

in relation to sustainability matters and

suggestways to drive improvement in these

areas as appropriate.

This report provides an overview of how the

Committee’s activities have assisted the Board

in discharging its duties relating to sustainability

matters against a backdrop of increasing levels

of regulation, best practice and stakeholder

interest. As a Committee, we continue to adapt

and evolve our annual programme of work to

reﬂect the increasing demands on the Group.

Activities in 2025

The Committee’s main activities during the

yearincluded:

@ Monitoring the Group’s performance against

the ambitious interim targets set out in the

ESG 2030 Strategy.

@ Ensuring the ESG 2030 Strategy remains

aligned with the Group’s purpose, values

andculture.

@ Oversight of the 2025 materiality assessment

process and outcomes, resulting in the

decision to prioritise business focus on carbon

reduction, innovation and skills.

@ Considering what role sustainability

targetscould play in future Annual Bonus

Scheme conditions.

@ Visiting the Aldridge and Weedon factories to

review their approach to sustainability issues.

@ Keeping appraised of sustainability trends

and developments, including in relation to

legislation and policy, and considering any

impacts on the Group’s stakeholders.

@ Continuing improvement with the Group’s

reporting relating to the Task Force on

Climate-related Financial Disclosures (‘TCFD’).

@ Overseeing the evolution of the Group’s social

impact strategy and how this could be further

developed to strengthen the business.

Membership and attendance

The Committee’s membership comprises

three Independent Non-Executive

Directors and the CEO.

The Committee is supported by the Group

Company Secretary. Other individuals, such

as members of senior management and

the Sustainability team, may be invited to

attend meetings as and when appropriate.

The Committee also regularly invites an

independent consultant to attend

meetings to assist with benchmarking and

industry views, reporting and assurance.

Details of meeting attendance can be

found on page 56.

Key responsibilities

@ Develop a corporate sustainability

strategy and ensure it is in alignment

with the corporate strategy, purpose

andvalues.

@ Develop and recommend to the Board

sustainability targets and key

performance indicators.

@ Understand the impact of the Group’s

operations on the environment and the

impacts, risks and opportunities of

climate change.

@ Oversee the promotion of socially

responsible values and standards that

relate to employees as well as the social

and economic community in which the

Group operates.

Priorities for 2026

The Committee’s priorities for next year include:

@ Continuing to drive the implementation of

the ESG 2030 Strategy and integration of

sustainability performance across the Group.

@ Maintaining focus on:

@ climate change and continuing to develop

the Carbon Transition Plan;

@ innovation to meet customer need for new

and sustainable products; and

@ skills development within the Group to

support succession planning and supporting

skills in the wider construction sector.

I would like to thank my fellow members of the

Committee for the open, constructive and

progressive discussions that take place at our

meetings. Their passion for our ambitious

agenda reﬂects the Group’s collective efforts

and dedication to sustainability.

Claire Hawkings

Chair of the Sustainability Committee

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Sustainability Committee Report continued

Key responsibilities continued

@ Recommend to the Remuneration

Committee any performance measures

used in the Group’s incentive plans.

@ Work with the Remuneration Committee

in assessing actual performance relative

to sustainability.

@ Work with the Audit Committee on

understanding the risk and opportunities

of climate change to ensure mitigation

plans are developed and implemented.

@ Oversee disclosures of sustainability

matters in the Annual Report.

Committee performance

The Committee’s effectiveness was

considered as part of the internal Board

Performance Review. The Committee was

deemed to be operating effectively with

strong Committee leadership. The

Committee continues to focus on ensuring

the right proportion of Committee time is

given to training, progress updates, horizon

scanning and discussion to really consider

and debate issues.

In our Annual Report:

@ Names and biographies of the

Committee members on pages 58 to 59

@ Sustainability on pages 39 to 46

@ Sustainability and Climate Change

Reporting from page 174

On our website www.ibstock.co.uk:

@ The Committee’s Terms of Reference

@ Sustainability Report

@ Our ESG 2030 Strategy

Sustainability governance

The Board, under the leadership of the Group

Chair, holds ultimate responsibility for

sustainability matters, but the Committee

takesthe lead in managing the Group’s

approach and implementation of the

sustainability framework, to enable us to

meetour commitments to all stakeholders.

The Committee is supported by an internal

Sustainability team of subject matter experts

that is headed by the Group Company

Secretary and includes the Head of ESG and

Manager of ESG. RSM are the Committee’s

professional advisers, who provide expert

technical advice and practical training. During

the year, the Committee received training on

arange of topics, including sessions on carbon,

carbon trading and ETS, as well as climate

governance and reporting updates.

Implementation of the ESG 2030 Strategy is

theresponsibility of the CEO, who, through

theExCo, ensures that sustainability topics

arediscussed across the business. A full

description of how our sustainability

governanceoperates can be found in the

sustainability and Sustainability and Climate

Change Reporting sections on pages 39 to 46

and 174 to 191, respectively.

The Committee continues to focus on ensuring

that the Committee and Board remain fully

briefed and appropriately trained on sustainability

matters. The Committee continues to mature

rapidly in both its knowledge and understanding

of the critical sustainability issues facing the Group.

Addressing Climate Change

A key part of our ESG 2030 Strategy is the

commitment to become a net zero for Scope 1

and 2 by 2040 and achieve a 40% absolute

carbon reduction for Scope 1 and 2 by 2030

against a 2019 baseline. The Committee

remains cognisant that the carbon reduction

journey will not always show linear progression.

2025 was a depressed market with low

production, which is reﬂected in 41%

reduction

in absolute Scope 1 and 2 carbon emissions

against a 2019 baseline. Although this is ahead

of target, the actual decarbonisation achieved

is modelled at 25% against the 2019 baseline,

which shows good progress towards our 2030

target. The Group’s carbon intensity metric for

2025 was 0.138 tonnes of carbon per tonne of

production. This is a slight improvement on 2024,

but remains above the desired level. Further

details and key data can be found from page

174 onwards.

The implementation and performance of our

Carbon Transition Plan (Plan) will require

Group-wide focus and prioritisation, and we

areheartened by the progress that the Group

has made to align the divisional strategies to

the Plan, as this will create further momentum

andpace in the implementation of carbon

reduction activities. At the same time, we

continue to develop our Plan aligned to

emerging reporting frameworks.

The Committee remains conﬁdent that the

Group is on course to achieve the ambitious

carbon commitments made in our ESG 2030

Strategy. More details on our ESG 2030 Strategy

can be found from page 39 and on our website.

The Committee has continued to oversee the

work of the internal TCFD Working Group,

reviewing progress as necessary. Led by the

Group Financial Controller, the TCFD Working

Group comprises representatives from the

Sustainability and Finance functions. It meets

on a regular basis to analyse and apply the

various developments and recommendations

published throughout the course of the year

and to ensure alignment with the Group’s

Business Plan.

Our TCFD report can be found on pages 178

to191.

In 2025, we completed the baselining of our

biodiversity data across all sites, feeding into

ourbiodiversity management tool. This has

contributed towards our planning for the future

application of the Taskforce on Nature-related

Financial Disclosures framework.

Manufacturing Materials for Life

New product development and the evolution

ofexisting products is a key driver to ensure our

products meet current and future demand in

the market. We continue to explore options for

our products to provide the durability and

resilience that the built environment requires

whilst lowering carbon, energy, water and

resource use. Performance against the KPI

remains strong at 25% of sales turnover from

new and more sustainable products in 2025.

Improving Lives

Business focus on skills both internally for

Ibstock’s talent planning and for the wider

construction sector were cornerstones of the

focus on Improving Lives in 2025. 7.2% of

employees are in Earn and Learn positions

compared to an industry benchmark of 5%

andthe Group launched its ﬁrst Ibstock Skills

Academy to support bricklaying students in

partnership with Walsall College.

We continue to make progress on the Social

Value framework, the diversity and inclusion

agenda, and employee development in line with

the commitments in our ESG 2030 Strategy.

1 Of the 41% reduction, 25% is permanent carbon reduction on

2019 baseline, 16% is temporary production volume decrease

which we forecast to reverse by 2030.

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Ibstock Plc | Annual Report and Accounts 2025

Audit Committee Report

Strength through

control and compliance

Justin Read

Chair of the Audit Committee

I am pleased to present this report, which sets

out the key activities undertaken throughout

2025 and our priorities for 2026. This will be my

last report as Chair of the Audit Committee

following the announcement that I will be

retiring from the Board on 21 May 2026.

The purpose of the Committee is to critically

assess and make recommendations on the

reporting, control, risk management and

compliance aspects of the Directors’ and the

Group’s responsibilities. At the same time, the

Committee provides independent monitoring,

guidance and challenge to management in

these areas.

The Committee also facilitates a forum for

reporting and discussion with the Group’s

External Auditor in respect of the Group’s

half-year and full-year results, retaining a focus

on monitoring the integrity of the Group’s

ﬁnancial statements, and the Group’s Internal

Auditor with regard to their reviews on the

effectiveness of elements of the Group’s

internal control framework.

Activities in 2025

The Committee’s main activities during the

yearincluded:

@ Oversight of the External Audit tender. Read

more on pages 85 to 86.

@ Receiving deep dives on cyber and

information security and tax.

@ Reviewing compliance with the requirements

of the FRC’s Audit Committees and the

External Audit: Minimum Standard (the

‘FRC’s Standard’) and determining that the

Committee complied fully with the FRC’s

Standard during the ﬁnancial year, including

in relation to the tender of the External

Audit contract.

@ Approval of the Group Accounting Manual

updates, including exceptionals treatment.

@ Overseeing the Group’s preparations to

ensure compliance against the new Provision

29 of the Code. Read more on page 90.

Priorities for 2026

The Committee’s priorities for next year include:

@ Continuing focus on the delivery of its core

responsibilities, ensuring robust monitoring of

the integrity of the ﬁnancial statements and

any formal announcements relating to the

Group’s ﬁnancial performance, and reviewing

signiﬁcant ﬁnancial reporting judgements

contained within them.

@ Overseeing an effective handover to a new

audit partner.

@ Continuing to oversee the operation of the

Group’s risk management and internal control

systems and making recommendations to

the Board in this regard.

@ Reviewing management’s plans and

recommendations for identiﬁed areas of

improvement in the Group’s internal controls.

@ Overseeing the proposed Provision

29disclosure to be included in the 2026

Annual Report.

@ Receiving deep dives on a range of key and

emerging risk areas, including those arising

from the Group’s horizon scanning activity.

@ Ensuring an effective handover to

mysuccessor, the new Chair of the

AuditCommittee.

I would like to thank the members of the

Committee, ExCo, senior management, Deloitte

and RSM for their sustained commitment

throughout the year, and during my tenure as

Chair, for the transparent discussions that take

place at our meetings and for the contribution

they all provide in support of our work.

Justin Read

Chair of the Audit Committee

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83Ibstock Plc | Annual Report and Accounts 2025

Audit Committee Report continued

Key responsibilities

@ To make recommendations on the

reporting, control, risk management and

compliance aspects of the Directors’ and

the Group’s responsibilities.

@ To provide independent monitoring,

guidance and challenge to management

inthese areas.

@ To provide a forum for reporting and

discussion with the Group’s External

Auditor in respect of the Group’s half-year

and full-year results.

@ To review and make recommendations

tothe Board on the Group’s ﬁnancial

reporting, internal control and risk

management systems.

@ To assess the effectiveness of the External

Audit process.

@ To assess the effectiveness of the External

and Internal Auditor.

@ To ensure high standards of corporate and

regulatory reporting, risk management

andcompliance, and the maintenance of

an appropriate control environment.

Committee performance

The Committee’s effectiveness was

considered as part of the internal Board

Performance Review. The output from this

process was reviewed by both the Board and

the Committee itself, in compliance with the

Code. Further information regarding the

review process can be found on pages 72 to

73. The Committee scored highly overall and

was considered to be chaired effectively.

The Committee performed its role and

undertook its responsibilities in an effective

manner. No speciﬁc developmental areas

were identiﬁed in the review.

In our Annual Report:

@ Names and biographies of the Committee

members on pages 58 to 59

@ Audit, risk and internal control on pages 74

to 75

@ Principal risks and uncertainties on pages

48 to 52

@ TCFD report on pages 178 to 191

@ Group Financial Review on pages 29 to 33

@ Viability and Going Concern Statements

onpages 53 to 54

On our website www.ibstock.co.uk:

@ The Committee’s Terms of Reference

@ Tax Strategy

@ Investor reports and presentations

Financial and narrative reporting

During the year, the Committee:

@ Reviewed the full- and half-year results

andassociated announcements and

recommended them to the Board

forapproval.

@ Considered the process for preparing the

Group’s Annual Report.

@ Reviewed the Group’s Annual Report to

consider whether, taken as a whole, it was fair,

balanced and understandable, and whether it

provided the necessary information required

for shareholders to assess the Company’s

position, performance, business model and

strategy. Further information on the format

of this review can be found opposite.

@ Considered the appropriateness of the

Group’s accounting policies and practices,

focusing on areas of signiﬁcant management

judgement or estimation, and questioned the

rationale for decisions taken in application of

the policies. Policies and practices were found

to be appropriate and correctly applied.

@ Received updates on corporate reporting

andcorporate governance from the

ExternalAuditor.

@ Considered the appropriateness of the

Group’s Viability Statement at the full year,

including the look-out period and Going

Concern Statement assumptions at the half

year and full year, including a review of the

sensitivity analysis and scenarios prepared by

management. The Viability Statement and

the Going Concern Statement are set out on

pages 53 to 54.

Membership and attendance

Membership comprises Independent

Non-Executive Directors only. The Chair

and at least one other Committee member

have recent and relevant ﬁnancial

experience, and all members have

competence relevant to the sector in which

the Group operates.

The Committee is supported by the Group

Company Secretary. The External Auditor,

Deloitte LLP (‘Deloitte’), and the Internal

Auditor, RSM LLP (‘RSM’), attend all

meetings. The Chair, CEO, Interim CFO and

other senior members of the Finance team

are routinely invited to attend Committee

meetings, alongside other individuals, as

and when required.

The Chair has regular meetings with the

Interim CFO, External Audit partner and

Internal Audit partner to discuss key

audit-related topics ahead of each

Committee meeting. In addition, the

Committee also holds private sessions

withthe CEO, Interim CFO, External Audit

partner and Internal Audit partner on a

rotational basis after each meeting.

Details of meeting attendance can be

found on page 56.

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Audit Committee Report continued

Fair, balanced and understandable

It is the Board’s responsibility to determine

whether the Annual Report is fair, balanced

and understandable. On behalf of the Board,

the Committee reviewed the process for

preparing the Annual Report, reviewed

management’s analysis of the Annual

Report and how this met the objectives of

providing fair, balanced and understandable

disclosures that gave shareholders the

necessary information to assess the

Company’s position, performance, business

model and strategy.

The Committee took into account the

following when completing this process:

@ Input from the CEO and Interim CFO

onthe overall messages and tone of the

Annual Report.

@ That individual sections of the Annual

Report were drafted by appropriate senior

management with regular review to ensure

consistency across the entire document.

@ That detailed reviews of appropriate

draftsections of the Annual Report were

undertaken by individuals independent

ofthe process.

@ That an advanced draft of the Annual

Report was reviewed by the Committee

and the External Auditor on a timely basis

to allow sufficient consideration and was

discussed with the CEO and senior

management prior to consideration by

theBoard.

After thorough consideration, the Committee

arrived at the conclusion that Annual Report

be recommended for approval by the Board

as fair, balanced and understandable.

Astatement from the Directors to this effect

is included in the Directors’ Responsibility

Statement on page 114.

Signiﬁcant accounting matters and key areas of judgement

A key factor in the integrity of ﬁnancial statements is ensuring that suitable accounting policies are adopted and applied consistently on a year on year

basis. The Committee speciﬁcally uses the audit planning meetings in May and November each year to consider the adoption of any relevant new

standards, proposed accounting treatments for major transactions, signiﬁcant reporting judgements and key assumptions related to those judgements.

In addition, these matters are reviewed at each Committee meeting throughout the year.

Matter considered Committee’s response

Alternative

Performance

Measures

(‘APMs’) and

exceptional

items

The Group presents as exceptional items* at the

bottom of the income statement those items of

income and expense which, because of the

materiality, nature and/or expected infrequency

ofthe events giving rise to them, merit separate

presentation to allow shareholders to further

understand elements of financial performance

inthe period, so as to facilitate comparison with

future years and to assess trends in financial

performance, and in determination of Directors’

variable remuneration.

The Committee conducted a robust and detailed

review of the items and associated judgements

thatwere categorised as exceptional in the year,

including the items arising from factory closures and

restructuring and disposal of property, land, plant and

equipment. Additionally, the Committee sought views

from the External Auditor as to the appropriateness

of items categorised by management as exceptional.

Upon conclusion of this review, the Committee

concurred with management’s analysis of proposed

exceptional items.

Details of exceptional items* are set out in Note 5 to

the financial statements.

Additionally, the Group financial statements present

a number of APMs within its published financial

information, including the 2025 Annual Report,

withthe objective of providing readers with further

understanding of financial performance in the

period, in order to facilitate comparison between

periods and to assess trends in financial

performance. Definitions of APMs used are set out

inNote 3 to the financial statements.

In light of the guidance issued by the European Securities and Markets Authority and more

recently the UK’s FRC, the Committee continues to assess management’s rationale for

including an item as an exceptional item* and the wider use of APMs.

The Committee challenged management’s rationale for the use of specific APMs, and the link

between APMs reported within the financial statements and incentive measures within the

Directors’ Remuneration Report. The Committee concluded that the presentation of APMs

gave additional clarity on performance and were reconciled appropriately to reported

amounts, with sufficient prominence, and is satisfied that the resulting presentation and

disclosure is appropriate.

The Committee challenged management’s rationale of items categorised as exceptional

inthe year and sought views from the External Auditor with regard to their appropriateness.

The Committee conducted further analysis and concluded that the proposed classification

was acceptable.

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Matter considered Committee’s response

Pension

liability

accounting

and disclosure

The Group has a defined benefit pension scheme,

which is closed to future accrual. Management

exercises its judgement around the assumptions used

by its actuary, including the sensitivities to these

assumptions, to calculate the pension scheme

liabilities under IAS 19 (R) Employee Benefits.

As at 31 December 2025, the Scheme had an

actuarial accounting surplus of £6.0 million

(2024:£7.8 million), including liabilities of

£316.9million (2024: £323.1 million), as detailed

inNote 21 to the financial statements.

Additionally, the Committee continues to assess

theimplication of the Virgin Media case on the

Group’s Pension Scheme in light of the guidance

published by FRC.

The Committee concurred with management’s assessment that the estimates used within the

valuation of the Group’s pension liability (including future changes in discount rates, inflation,

increases in pension payments and life expectancy) represented significant sources of

estimation uncertainty, as set out within IAS 1 Presentation of Financial Statements. A review

of management’s proposed disclosure in relation to this estimation uncertainty was completed.

Additionally, the Committee reviewed the assumptions with management including those

arising from the triennial valuation and sought views from the External Auditor before it

concluded on the appropriateness of the actuarial balances disclosed.

This review considered the financial assumptions used by management as part of the actuarial

valuation and the range of possible assumptions using available market data to assess the

reasonableness of the assumptions.

The Committee also specifically reviewed and considered the disclosure with regard to the

impact of the Virgin Media pension court case on the Ibstock Pension Scheme and the

financialresults.

In conclusion, the Committee determined that the actuarial assumptions used in the valuation

of the period end pension liabilities were in an acceptable range, disclosed appropriately, and

was satisfied that the resulting presentation and disclosure was appropriate.

Impairment

of non-current

assets

The Group holds significant asset values in the form

of brands, customer relationships, mineral reserves,

land and buildings and property, plant and

equipment. At the interim and year end balance

sheet date, these assets were considered for

indications of impairment.

At 31 December 2025, following the announcement

of the 2025 restructuring, a total impairment charge

of £6.3 million was recognised within cost of sales

within the Group’s consolidated income statement.

Additionally, the Committee reviewed and considered

the key estimation uncertainty disclosure relating to

the impairment of non-current assets.

At 31 December 2025, detailed impairment tests

assessing the value-in-use (‘VIU’) concluded that

there was no impairment at a cash generating

unit(‘CGU’) level across the Group for any of those

sites expected to continue in operation. As at

31December 2025, the value of these non-current

assets was £ 556.8 million (2024: £572.7 million).

In approving the interim and full-year financial statements of the Group, the Committee

considered and appropriately challenged the analysis of impairment proposed by

management, in light of the Group’s decision of restructuring recently approved by the Board.

In addition, the Committee carefully considered management’s VIU assessments, the related

sensitivity analyses and the disclosure included within the Group’s financial statements.

TheCommittee sought views from the External Auditor regarding management’s process

forcompletion of VIU impairment tests and the conclusions reached.

In conclusion, the Committee assessed the impairment charge as appropriate and concurred

with management’s view that no further impairment was required. The Committee carefully

considered management’s VIU tests and the associated sensitivity analysis and assessed the

impact on the analysis of changes to the underlying assumptions. This compared the assumed

performance of the CGUs to the recently Board-approved budget and strategic plan.

Additionally, the Committee sought the External Auditor’s views as to the process adopted

bymanagement at the year end date to assess VIU. Following its review, the Committee

concurred with management’s judgement that no further risks of impairment existed at the

balance sheet date for the sites that will continue in operation.

In conclusion, after reviewing the reports from management, the Committee was satisfied that

the financial statements appropriately reported the value of the assets and that they were

fairly stated. The Committee also reflected on the key estimation uncertainty disclosure

relating to the impairment of non-current assets and concluded this was appropriate.

Signiﬁcant accounting matters and key areas of judgement continued

Audit Committee Report continued

Going Concern and Viability

Statements

On behalf of the Board, the Committee

considered the appropriateness of the

assumptions used for the Viability Statement

and Going Concern Statement at the half year

and full year, including reviewing the sensitivity

analysis and scenarios prepared by

management. Details of the review process

andthe conclusion reached are set out on

pages 53 to 54. Following its review, the

Committee recommended the approval of

bothstatements to the Board.

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Ibstock Plc | Annual Report and Accounts 2025

Audit Committee Report continued

External Audit

The Committee has primary responsibility for

overseeing the relationship with the External

Auditor, including assessing its performance,

effectiveness and independence annually, and

making a recommendation to the Board in

respect of its reappointment or removal. Any

decision to open the External Audit to tender is

taken on the recommendation of the Committee.

Following a competitive tender process conducted

in 2016, Deloitte was appointed as auditor from

the ﬁnancial year ending 31 December 2017. Lee

Highton became the lead audit partner for the

year ended 31 December 2022, following the

rotation of the previous partner, and will remain as

audit partner until the completion of the 2025

year end audit process. Lee will be replaced by

Kate Hadley as audit partner for the ﬁnancial year

ending 31 December 2026 should Deloitte be

reappointed as External Auditor at the 2026 AGM.

The Committee’s policy is that the role of the

External Auditor will be put out to tender at

least every 10 years in line with the applicable

rules, or at other times should it be required by

speciﬁc circumstances. In line with market

requirements, a tender for the External Audit

contract was undertaken during the year.

Moredetail can be found on page 88.

During the year, in relation to the work undertaken

by the External Auditor, the Committee:

@ Considered the requirements of the

FRC’sStandard.

@ Reviewed and concurred with Deloitte’s plans

for the review of the 2025 half-year statement

and audit of the 2025 full-year ﬁnancial results.

@ Reviewed and considered the reports presented

by Deloitte to the Committee following the

half-year review and full-year audit, which led to

the Committee forming the opinion that Deloitte

had demonstrated independence and objectivity.

@ Discussed and approved the Directors’ Letter

of Representation to be provided to Deloitte.

@ Reviewed the performance of the External

Auditor and the effectiveness of the External

Audit process.

@ Discussed and approved the fees for audit

and non-audit services and obtained

assurance on the objectivity and

independence of the External Auditor, taking

into consideration relevant professional and

regulatory standards.

@ Reviewed and approved the policy for the

employment of former employees of the

External Auditor, without amendment,

conﬁrming with management that no such

employees had been appointed during 2025.

@ Held planned meetings with Deloitte,

following Committee meetings, without

management present on two occasions.

Nomaterial issues were brought to the

Committee’s attention at those meetings.

@ Considered the adequacy of the Group’s

procedures with regard to the objectivity

andindependence of the External Auditor.

@ Recommended to the Board that a

shareholder resolution should be proposed

forthe reappointment of Deloitte.

The Group conﬁrms it was in compliance with the

provisions of the Statutory Audit Services for Large

Companies Market Investigation (Mandatory Use

of Competitive Tender Processes and Audit

Committee Responsibilities) Order 2014 during

the ﬁnancial year ended 31 December 2025.

Effectiveness of the External Auditor

The Committee has the responsibility for

overseeing the Group’s relationship with the

External Auditor and advises the Board on their

appointment or reappointment, their

effectiveness, independence and objectivity,

and discusses the nature and results of the audit

with the External Auditor.

This year’s review of the External Audit process

included consideration of the following:

@ The effectiveness of the External Audit ﬁrm.

@ Quality controls.

@ The audit team.

@ Audit fee.

@ Audit communications and effectiveness.

@ Governance and independence.

@ Ethical standards.

@ Potential impairment of independence

bynon-audit fee income.

@ Deloitte’s ability to make valid

improvementsuggestions.

As part of the review of the effectiveness of

theExternal Audit process, the Committee

received a report on the External Auditor’s

quality control procedures and conducted a

formal evaluation procedure.

In addition to reviewing the formal report

received from the External Auditor, which

outlined how points raised by them have been

addressed by management, feedback is also

sought on the conduct of members of the

Finance team during the audit process. The Chair

of the Committee also met with the lead audit

partner outside the formal Committee process.

The Committee considers the effectiveness of

management in the External Audit process in

respect of the timely identiﬁcation and resolution

of areas of accounting judgement with input

from the External Auditor as appropriate. They

also consider management’s timely provision of

the draft half-year results announcement, Annual

Report and supporting documentation for review

by the auditor and the Committee.

Auditor independence

The Committee regards independence of the

External Auditor as crucial in safeguarding the

integrity of the audit process and takes

responsibility for ensuring the relationship

between the Committee, the External Auditor

and management remains appropriate.

The Committee recognises that independence is

also a key focus for the External Auditor, and

Deloitte has conﬁrmed that it has complied with its

own ethics and independence policies, which are

consistent with the FRC’s Revised Ethical Standard

2024. This includes the External Auditor’s

assurances that all of its partners and staff

involved with the audit are independent of any

links to the Group and that none of its employees

working on our audit hold any shares in Ibstock Plc.

Deloitte provides conﬁrmation of independence

during the planning stage of the audit,

disclosing matters relating to its independence

and objectivity. There were no independence

issues raised in respect of the audit for the

ﬁnancial year ending 31 December 2025.

The Committee also develops and recommends

to the Board the Group’s policy on non-audit

services and associated fees paid to the

External Auditor, to ensure the External Auditor

is not providing any additional services that

could impede its independence. Further details

on this policy can be found below.

Taking all factors into consideration, the

Committee considers that the External Auditor

continues to be independent.

Non-audit services

The Non-Audit Services Policy sets out clearly

the non-audit services that may be provided by

the External Auditor.

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Audit Committee Report continued

Deloitte was ﬁrst appointed as External

Auditor for the ﬁnancial year ending

31December 2017. In accordance with the

provisions of the Statutory Audit Services for

Large Companies Market Investigation

(Mandatory Use of Competitive Tender

Process and Audit Committee Responsibilities)

Order 2014, the Group’s next mandatory

tender would therefore need to be in respect

of the audit for the ﬁnancial year ending

31December 2027 (the ‘2027 External

Audit’). The timeline below sets out details of

the tender process (Process).

November 2024

As previously disclosed, the Committee

determined that the optimum approach

would be to conduct a Process during 2025 in

respect of the 2027 External Audit, to allow for

a signiﬁcant transition period during the 2026

ﬁnancial year and to allow ﬁrms to exit

relationships that may present a conﬂict of

interest should this be relevant. The proposed

approach, formulated to align with the FRC’s

Standard, was discussed by the Committee at

its meeting in November 2024. The

Committee agreed that the proposed

selection criteria were transparent and

non-discriminatory, and were focused on

quality (independence, challenge and

technical competence) rather than the

proposed fee.

The Audit Tender Committee (the ‘ATC’),

led by the Chair of the Committee, was

established to manage and govern the

Process, accountable to the Committee, which

maintained overall ownership of the Process

and ensured that it was run in a fair and

balanced manner.

April 2025

Ahead of issuance of a formal proposal, the

ATC interviewed a short-list of Audit Partners

provided by the tendering firms and selected

the lead partner. The request and a

comprehensive data pack was subsequently

issued to provide the tendering ﬁrms with

sufficient information to design an audit plan,

including: ﬁnancial reports; ﬁnancial controls

and policies; Group structure and organisation

charts; relevant IT system details; and Board

and Audit Committee papers. Further

information requests were permitted under

aspeciﬁed procedure process to allow the

ﬁrms to ask questions on the content of the

data pack or request further information

frommanagement.

May and June 2025

The ﬁrms participated in a series of meetings

with Committee members and senior

management, which provided an opportunity

for the ﬁrms to ask questions arising from their

review of the data pack, as well as enabling the

ATC and senior management members to

interact directly with each proposed audit team.

Each ﬁrm provided an independence

assessment at the start of the process,

detailing services currently provided to the

Group, and conﬁrmation of their ability to

achieve independence within the required

timeframe. These responses were reviewed by

management to assess consistency with the

Group’s own assessment, and independence

status was reconﬁrmed ahead of the

conclusion of the Process.

July 2025

The ATC received presentations from and

interviewed the proposed teams from each

ﬁrm at individual sessions, which enabled the

ATC to probe the ﬁrms on criteria including:

quality review ratings; technical expertise;

understanding of the business and industry;

planned audit approach; proposed team

structure; and implementation and transition.

The ATC scored the ﬁrms on the presentations

received and formal proposals submitted,

alongside the consideration of the FRC’s Audit

Quality Results from the previous two years.

Reference checks were also undertaken with

comparable companies, seeking insights into

matters such as each ﬁrm’s ability to challenge

management effectively, use of technology

and tools, diversity of workforce, and

conﬁdence in the team’s expertise,

accreditation and experience.

Following a detailed review of the

performance of each ﬁrm during the process

and an evaluation against all criteria, the ATC,

in accordance with statutory requirements,

provided a report on the tender selection

procedure and conclusions to the Committee

for consideration. The Committee reviewed

the ATC’s proposal and recommended

Deloitte to the Board as ﬁrst choice, along with

a second choice recommendation.

July 2025

The Board selected Deloitte as the External

Auditor for the 2027 External Audit onwards,

subject to shareholder approval at the

2027AGM.

External Audit continued

Non-audit services continued

Under the policy, prior approval is required

bythe Committee for any non-statutory

assignments where the fee would exceed

£10,000, or where such an assignment would

take the cumulative total of non-audit fees paid

to the External Auditor over 70% of that year’s

statutory audit fees. However, when appropriate,

a detailed calculation will be performed to

ensure that the Group is compliant with the

European Union’s Statutory Audit Framework.

The policy is reviewed on an annual basis and

was adopted without amendment in November

2025. The External Auditor is responsible for the

annual audit of the main Group subsidiary

companies and other services that the

Committee believes it is best placed to provide.

Details of the amounts paid to the External

Auditor are set out in Note 6 to the Group

consolidated ﬁnancial statements. The ratio

ofaudit fees to non-audit fees was 13:1.

Auditor appointment for the year ending

31December 2026

The Committee reviews annually the appointment

of the External Auditor taking into account the

External Auditor’s effectiveness and independence

and all appropriate guidelines and makes a

recommendation to the Board accordingly.

Deloitte has indicated its willingness to continue

in office, and the Committee has recommended

Deloitte’s reappointment to the Board.

Aresolution to reappoint Deloitte as the

External Auditor for the ﬁnancial year ending

31December 2026 will therefore be proposed

at the AGM to be held on 21 May 2026.

There are no contractual obligations that

restrict the Committee’s choice of auditor,

therecommendation is free from third party

inﬂuence, and no auditor liability agreement

has been entered into.

External Audit tender

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Audit Committee Report continued

Internal Audit

Internal Audit services are provided through an

outsourced arrangement with RSM whilst

certain other activities, including site

inspections, are conducted by Ibstock’s internal

teams. RSM have provided Internal Audit

services since February 2017.

The Internal Audit programme for the

subsequent year is subject to detailed review

and approval by the Committee annually in

November. The programme comprises a

schedule of reviews and audits to cover a range

of processes and controls throughout the year

across each component of the Group. Updates

on the status of audits against the annual

Internal Audit programme are provided to the

Committee by RSM on a regular basis.

RSM present reports on their audits and reviews

to the Committee for discussion. The reports set

out any control weaknesses identiﬁed as well as

the actions agreed by management to address

recommendations. Management’s

responsiveness to RSM’s ﬁndings is a key focus

area for the Committee given the direct link to

maintaining an effective control environment

for the Group to operate in. The Committee

concluded that during the year, management

had largely responded to Internal Audit reports

in a timely and thorough manner by outlining

clear and comprehensive actions to be taken to

address RSM’s recommendations.

The Committee met with RSM, without

management present, on two occasions during

the year. No material issues were brought to the

Committee’s attention at those meetings. The

Chair of the Committee also meets with RSM

privately when appropriate.

Effectiveness of Internal Audit

The Committee is responsible for overseeing

theeffectiveness of the Internal Auditor.

TheCommittee received and considered the

feedback provided about the Internal Audit

effectiveness that was collated using a

questionnaire sent to Committee members

andmanagement.

The Committee considers that RSM continue

tobe independent and that the Internal Audit

function is effective.

Risk management and internal control

The Committee supports the Board in

monitoring the Group’s exposure to risk. It is

responsible for reviewing the operation and

theeffectiveness of its risk management and

internal control systems and assisting in the

assessment of the Group’s principal risks and

uncertainties. This review includes all material

controls, including ﬁnancial, operational and

compliance controls.

The Group’s internal control systems include a

clear management structure with appropriate

authorities, robust ﬁnancial controls, an

appropriate risk management system, an

Internal Audit function and appropriate policies

and procedures. These are designed to meet

the particular needs of the Group and the risks

to which it is exposed. Such systems can only

provide reasonable and not absolute assurance

against material misstatement or loss.

Management structure and authority

There is a clearly deﬁned management

responsibility and reporting structure. This

includes documented levels for the authorisation

of business transactions and clear bank mandates

to control the approval of Company payments.

The ExCo meets on a frequent basis in order

toconsider the assessment and control of risk,

including review and challenge of divisional

andhead office risk registers, and the

consideration of strategic and emerging risks.

They also consider the prioritisation and

allocation of resources.

Review of effectiveness

Twice a year the Committee considers in detail

the risk management and internal control

environment within the Group. During these

meetings, the Committee considers the current

and proposed regulatory and best practice

requirements alongside a review of Ibstock’s

internal controls. This includes the Group’s

culture and values, risk management evaluation

and procedures, ﬁnancial controls, Internal Audit

focus and processes, and ethics and compliance.

This review provides an opportunity to identify

areas for improvement and development.

The Committee also receives reports on

compliance with internal controls throughout

the year alongside independent reports from

RSM on the audits and reviews they have

undertaken. RSM carry out independent testing

of internal controls on a six-monthly basis and

the outcome is shared with the Committee.

The review of effectiveness included the

following elements:

@ Consideration of the principal risks and

uncertainties and their associated mitigation

prepared by management in advance of their

submission to the Board. This formed a key

component of the Board’s robust assessment

of the emerging and principal risks facing the

Group, including those that would threaten its

business model, future performance, solvency

or liquidity. The Group’s principal risks are set

out on pages 48 to 52.

@ Review of a report from the Interim CFO on

the internal controls operating in the business

and any associated action plans.

@ Review of fraud risks (including those under

the Economic Crime and Corporate

Transparency Act 2023), including the results

of a fraud risk assessment, the Code of

Business Conduct and Whistleblowing Policy.

@ Oversight of risk and internal control

arrangements.

@ Review of work undertaken to comply with

Provision 29 of the Code.

Based on this review the Committee concluded

there were no material weaknesses. However,

anumber of areas were identified where

improvements are required to enhance

formality and consistency of control operation

including timeliness and retention of evidence.

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Audit Committee Report continued

Preparing for Provision 29

The Board and the Committee support the

enhanced reporting requirements set out

inProvision 29 of the Code, which will be

effective for the Group from the financial

year commencing 1 January 2026. Along

with the existing disclosure of the annual

review of effectiveness of the risk

management and internal control

framework, an explicit declaration of

effectiveness of all material controls as

atthe balance sheet date will be included

within future reports from the Committee.

In preparation for the introduction of

Provision 29, during the year an initial

proposal on material controls and

assurance was reviewed by the Committee

and this will be subject to further

enhancement in 2026. Existing governance

structures mean that the Board and its

Committees already report upon the

effectiveness of a range of controls in the

Annual Report. Efforts are therefore being

focused on leveraging this strong

foundation and strengthening any gaps

toensure the Board has the requisite level

of confidence in making their annual

declaration on the effectiveness of

material controls.

The Committee will continue to receive

regular updates from management on the

progress of the work being undertaken on

internal controls, ahead of the Board’s first

disclosure in next year’s Annual Report.

Compliance with the Code of

BusinessConduct

The Group’s Code of Business Conduct supports

colleagues in making business decisions that

arein the best interests of the Group, fellow

employees, customers, suppliers, regulators

andthe communities we operate in. It covers

topics including health and safety, anti-fraud,

anti-bribery, competition law, gifts and

hospitality and conﬂicts of interest, all of which

play their part in responsible business practices.

During the year, the Group refreshed its

governance and compliance framework to

moreclosely link to the Code of Business

Conduct, the launch of which was overseen

bythe Committee given its role in reviewing

theoperation of the Group’s procedures that

are inplace for the detection of fraud and

thesystems and controls in place to prevent

abreach of anti-bribery legislation.

The Group is committed to a zero tolerance

position with regard to fraud and bribery.

Anti-fraud and anti-bribery guidance and

training is provided to employees, as

appropriate, applying what the Group has

determined to be a risk-based and

proportionate approach.

Whistleblowing

The Group aspires to maintain the highest

standards of ethical behaviour, corporate

governance, and accountability in all areas

ofitsactivities. The Group’s culture fosters an

environment where colleagues operate

honestlyand with integrity and, therefore,

reports of any potentially illegal, unsafe, or

unethical behaviour are encouraged under

theWhistleblowing Policy.

All employees, agents and contractors,

regardless of their role are covered by this policy,

which aims to:

@ encourage everyone to report any concerns

as soon as possible, in the knowledge that

they will be taken seriously and investigated

as appropriate, and their conﬁdentiality will

be respected; and

@ reassure employees that they should be

ableto raise genuine concerns without fear

ofreprisals or victimisation.

The Committee receives updates on

whistleblowing investigations at each meeting,

including those incidents raised through the

conﬁdential whistleblowing line. A summary

ofall material incidents raised is presented to

the Board twice a year.

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Ibstock Plc | Annual Report and Accounts 2025

Directors’ Remuneration Report

Strength through fair and

balanced decisions

Nicola Bruce

Chair of the Remuneration Committee

Annual Statement of the

Committee Chair

On behalf of the Board, I am pleased to share

the Remuneration Committee’s (Committee)

report for the year ended 31 December 2025.

Iwould like to thank my fellow Committee

members for their support and contribution to

the work of the Committee throughout the year.

This report consists of three sections:

@ Annual Statement: A summary of the work

ofthe Committee during the year and

ourapproach to remuneration for the

yearahead.

Read more on pages96 to 101.

@ Annual Report on Remuneration: Sets out the

pay and incentive outcomes for the year

under review, Directors’ share ownership and

share interests, pay comparisons which

provide context for outcomes, Committee

governance and how the Committee intends

to implement the proposed Policy in 2026.

Business performance in FY2025

Following a strong start to the year, trading

conditions became progressively more

challenging. Ibstock’s market leadership and

differentiated offering enabled market share

gains in Clay brick whilst lower average selling

prices reflected the tough environment and a

shift in mix towards new build residential.

Management took decisive actions to right-size

production capacity through a clear focus on

driving efficiencies through the factory network

resulting in the delivery of estimated cost

savings of £5 million. The decision in Q4 to sell a

number of surplus land assets and the Forticrete

roofing sites contributed to the maintenance of

a robust balance sheet, which enables the

Group to deliver on key strategic priorities whilst

providing optionality on sustained future

shareholder value creation.

Remuneration outcomes for FY2025

Annual and Deferred Bonus Plan (‘ADBP’)

Consistent with previous years, the annual

bonus for our Executive Directors was based

70% on the Group’s financial performance and

30% on non-financial objectives.

Full details of the FY2025 targets and performance against

them are set out on page 103.

@ Adjusted EBIT* accounted for 50% of total

bonus. Performance was below threshold and

therefore none of this element was paid.

@ Adjusted Operating Cash flow* accounted for

20% of total bonus. Performance exceeded

the maximum target and consequently this

element of the award will pay out in full.

@ Non-financial objectives that were role-

specific and aligned with the Company’s

strategic ambitions accounted for 30% of the

total bonus. The Committee noted the strong

performance in relation to these non-

financial targets, for which an outcome of

23% out of 30% was achieved for the CEO,

details of which are set out on page 103.

On balance, and after detailed consideration,

the Committee concluded that the overall

annual bonus outcome of 43% of maximum

(equating to 64.5% of salary) is an appropriate

outcome. The Committee is aware that the

primary financial measure, adjusted EBIT* was

not achieved but nevertheless believes the

payout is warranted for the following reasons:

@ It reflects the delivery of a resilient

performance in FY25 with revenue up 2%

toc.£372 million (2024: £366 million) in a

progressively tougher market.

@ Market share gains in Clay with diversified

ceramic façades capability gaining

significantinterest.

@ Performance during Q4 benefited from

costreduction action and stable pricing,

withFY 2025 Group adjusted EBITDA of

£71million (2024: £79 million) in line with

therevised guidance.

@ Underlying trading cash flow for the year

wasalso in line with previous guidance,

withyear-end net debt of £120 million

(2024:£122 million) reflecting a consistent

disciplined capital allocation approach.

@ Atlas factory largely complete, delivering

lower cost, more efficient capacity

@ Nostell investment progressing through

commissioning largely complete, with good

progress on the construction of the UK’s

mostadvanced ceramic façade facility.

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Directors’ Remuneration Report continued

Remuneration outcomes for FY2025

continued

Long Term Incentive Plan (‘LTIP’) vesting

Vesting of the 2023 awards was subject to the

achievement of adjusted EPS*, relative TSR,

ROCE* and sustainability-related conditions

measured over the three-year performance

period ending 31 December 2025.

The EPS*, relative TSR and ROCE* measures

accounted for 80% of the total award.

Reflecting challenging conditions impacting

theindustry, the thresholds for each of these

measures was not achieved.

The sustainability measures, accounting for

20% of the award, were based on objectives

relating to carbon intensity (carbon per tonne

offinished production), growth in female

representation amongst the senior leadership

team, and revenues from new and more

sustainable product development. Despite

significant progress on carbon reduction with

delivery of six out of a total of 13 planned lower

carbon products, including a carbon neutral

range at our Atlas Factory in the Midlands, the

carbon intensity target was not met. Female

representation and new and more sustainable

product development targets achieved

threshold and maximum levels of vesting

respectively. As a result, the sustainability

component of the awards vested at 6.25%

outof 20%.

Based on the performance across these four

components, the overall vesting of the 2023

LTIP is 6.25% of maximum. Full details of these

performance targets, outcomes and vesting are

detailed on page 104.

The Committee carefully considered the

formulaic outcomes for the Annual and

Deferred Bonus Plan (‘ADBP’) and the LTIP and

is satisfied that, taken together, there is no basis

for operating discretion (either upwards or

downwards) in respect of these outcomes.

Board changes during the FY2025

The Company announced on 30 April 2025 that

Chris McLeish had informed the Board of his

intention to step down from his role as Chief

Financial Officer and his final day with Ibstock

was 10 October 2025. In line with our

Remuneration Policy and his service agreement,

Chris received his base salary, benefits and

pension contributions to the date of cessation

and no further payment was made in respect

ofthe unexpired notice period. All unvested

awards under the ADBP and the LTIP lapsed

oncessation.

Simon Bedford was appointed as Interim CFO

whilst Ibstock completes its search for a

permanent successor. As Simon has not been

appointed as a Board director, his remuneration

has not been included.

Richard Akers was appointed as an

Independent Non-Executive Director and Chair

Designate with effect from 5 May 2025 and

succeeded Jonathan Nicholls as Chair following

the completion of the Annual General Meeting

(‘AGM’) on 15 May 2025. Richard’s fee as Chair

of the Board was set at £225,000.

Approval of Directors’ Remuneration

Policy

The Committee was pleased to receive strong

shareholder support for the Policy, which was

presented for approval at the 2025 AGM.

Following a comprehensive consultation with

shareholders, which we set out in our 2024

Annual Report, the key remuneration changes

included phased salary increases for Executive

Directors over a two year period and an increase

to their annual bonus opportunity in order to

bring their total compensation package closer

to the median pay benchmark for a business of

our size and complexity. We combined these

changes with an increase in share deferral

requirements, such that 50% of annual bonus

earned will be deferred and held in shares for

two years until such time as individual Director

shareholding guidelines have been achieved.

The report has been prepared in accordance with the Companies Act

2006, Schedule 8 of the Large and Medium-sized Companies and

Groups (Accounts and Reports) Regulations 2008 as amended in

2013, the provisions of the UK Corporate Governance Code 2024 and

the UKLA’s Listing Rules.

In addition, we introduced restricted share

awards as our sole form of long-term incentive.

The first restricted share awards were granted

following the 2025 AGM. In line with the Policy

approved by shareholders, the restricted stock

award was set at 50% of the value of the

performance-based share awards of previous

years. The Committee is very grateful to

shareholders for their constructive input

andsupport.

Further to shareholder support on this matter,

Joe Hudson’s salary was increased to £585,000

with effect from 1 April 2025 with the intent to

raise it to £615,000 with effect from 1 April 2026,

subject to continued strong individual performance.

It was also agreed that the Committee may

apply a further increase in April2026 to reflect

the level of any subsequent inflationary

workforce salary increase that might apply

fromApril 2026.

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Ibstock Plc | Annual Report and Accounts 2025

The year ahead

The Committee will seek to implement the

Policy as follows:

@ Base salaries – As was indicated in last year’s

report, further to shareholder support on this

matter, and reflecting his continuing strong

individual performance in challenging market

conditions, the Committee has agreed to

increase Joe Hudson’s salary from £585,000

to £615,000 from 1 April 2026. The

Committee considered whether to apply a

further 2026 inflationary workforce increase

of 3% to this figure as was intended last year.

However, Joe Hudson requested that this not

to be applied in the context of continuing

market challenges. The Committee is grateful

to Joe for his consideration on this matter.

Consequently, from 1 April 2026, Joe Hudson’s

salary will be increased by 5% to £615,000.

@ Pension – Workforce-aligned contributions at

10% of base salary.

@ Annual bonus – The maximum opportunity

will be 150% of salary and, consistent with

2025, 50% of the total award will be based

on adjusted EBIT*, 20% on adjusted cash

flow* and 30% on non-financial personal

objectives. One half of any FY2026 bonus

earned will be deferred into shares (or one

third of bonus earned if the 200% of salary

shareholding guideline has been met by

thattime).

@ Restricted shares – The Committee intends to

grant awards of restricted shares at 75% of

salary to the CEO. The Committee will take

into account the prevailing share price when

determining the award level, and while the

current share price is lower than the grant

price for the 2025 awards, it is broadly in line

with the 2024 grant price. These awards will

vest subject to an underpin measured over a

three-year performance period, 2026 to 2028

and will include an assessment of windfall

gains. The factors that will be considered as

part of the underpin assessment are set out

in the policy table on page 98. A two-year

post-vesting holding period will alsoapply

toany vested awards.

Looking after our employees

Employee engagement and listening to the

views of our workforce remain central to how

the Committee considers remuneration and

wider people policies. Building on the success of

previous years, our Listening Post continued to

provide a direct and constructive forum for

dialogue between employees and members of

the Committee. In 2025, the Listening Post met

three times, with strong attendance from

colleagues across our factory locations and

support functions. These sessions continue to

provide valuable insight into what matters most

to our employees and help inform decision-

making at Board level.

Feedback during the year reaffirmed the

importance of competitive and fair pay,

benefits that support wellbeing, and long-term

employment security. Colleagues continued to

respond positively to our benefits offering and

our Digicare+ health and wellbeing services,

which provide access to annual health checks,

online GP appointments, and nutritional and

mental health support.

The theme of skills development and future

employability also remained a key focus. We

continued to invest in up-skilling our workforce

and expanding internal development

opportunities. In 2025, we maintained our Gold

membership of the 5% Club, reflecting our

ongoing commitment to high-quality ‘Earn and

Learn’ roles. During the year, we supported 68

apprenticeships across our factory estate and

support functions, while a further 71 existing

colleagues continued to upskill through our Earn

and Learn programmes. This reflects our focus

not only on attracting new talent but also on

providing development pathways and

enhanced employment security for our current

workforce, with a continued emphasis on

attracting and supporting diverse talent from

the communities in which we operate.

We also recognise the importance of rewarding

contribution and fostering a culture of

appreciation. Our peer-to-peer recognition

scheme remained an important part of this

approach in 2025, with approximately 100

colleagues receiving cash awards of up to £500,

recognising exceptional teamwork,

commitment, and performance.

In 2025, we were pleased to invite colleagues

toparticipate in our all-employee Save As You

Earn (Sharesave) scheme, further strengthening

employee participation in the long-term success

of the business. Participation levels were strong,

with 41% of eligible employees choosing to take

part. The Sharesave enables colleagues to save

a fixed monthly amount and use those savings

to buy shares at a discounted price at maturity,

offering a tax-efficient way to build savings,

benefit from share price growth, and strengthen

alignment between employee reward and

shareholder outcomes.

During the year, we also conducted our bi-annual

employee opinion survey and achieved an 83%

participation rate which provided valuable insight

into colleague sentiment across the organisation.

Feedback on pay and benefits indicated that

there is more to do to ensure our approach

continues to meet expectations in a changing

economic environment. This feedback is taken

seriously and is being used to inform ongoing

reviews of our reward structures, communication

and benefit design, ensuring that they

remaincompetitive, fair, and aligned with

employee priorities.

Overall, the Committee is encouraged by

thehigh levels of engagement across these

initiatives and remains committed to maintaining

open dialogue with employees, supporting skills

development, and ensuring that remuneration

policies continue to reflect both business

performance and the employee experience.

Shareholder support

I hope we will again receive your support

fortheresolution relating to remuneration at

the forthcoming AGM, where I will be available

to respond to any questions shareholders may

have on this report or in relation to any of the

Committee activities. In the meantime, if you

would like to discuss any aspect of our

Remuneration Policy, please feel free to

contactme via the Group Company Secretary

(company.secretariat@ibstock.co.uk).

Nicola Bruce

Chair of the Remuneration Committee

4 March 2026

Directors’ Remuneration Report continued

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Ibstock Plc | Annual Report and Accounts 2025

Directors’ Remuneration Report continued

Joe Hudson (CEO)

Total remuneration

£1,055

000s

£000s FY25 FY24

Base Salary 573 532

Benefits 9 8

Pension 57 53

Bonus 378 449

LTIP 38 321

Total 1,055 1,363

Remuneration

at a glance

How our Executives were paid in FY2025

Executive Director total remuneration in FY2025 and FY2024

Share ownership

Joe Hudson (CEO) (% of salary)

2025 bonus performance

Total 2025 Bonus Performance (%)

2025 indicative LTIPperformance

Total 2025 indicative LTIP performance (%)

117% 276%

Current

Shareholding

117%

Shareholding Requirement

200%

Face Value of

Unvested LTIP

Awards

159%

23%

20%

Adjusted EBIT*

Adjusted Operating Cash

Non-Financial Objectives

Threshold

Maximum

Total 2025 Bonus Performance: 43.0%

6.25%

Adjusted EPS*

ROCE

ESG Measure

Relative TSR

Threshold

Total 2025 LTIP Performance: 6.25%

Maximum

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94Ibstock Plc | Annual Report and Accounts 2025

573 66 378 38

Directors’ Remuneration Report continued

How our Executives will be paid in FY2026

An overview of our Policy and how it is proposed to apply in FY2026 is set out below.

Fixed pay: to recruit and reward Executives of a high calibre

Remuneration for the year ending 31 December 2026

Salary CEO: £615,000 Joe Hudson’s salary will increase from £585,000 to

£615,000 effective 1 April 2026. This increase was set out

in last year’s report, and the Committee is satisfied that

the increase is warranted based on Joe’s continued strong

individual performance.

Pension 10% of salary Aligned with the maximum pension opportunity for the

wider workforce.

Benefits Includes private medical cover, a company car or a cash alternative, and death

inservice cover.

Annual and Deferred Bonus Plan (‘ADBP’)

To incentivise and reward the achievement of annual financial and operational objectives which

areclosely linked to the corporate strategy.

The maximum opportunity will be 150% of salary, and one half of any FY2026 bonus earned will

bedeferred into shares (or one third if the 200% of salary shareholding guideline has been met

bythat time).

Half

of bonus paid in cash

Half

of bonus deferred

into shares for

threeyears

Maximum opportunity: 150%

Malus and clawback provisions apply

(seepage100).

LTIP: restricted shares

The Committee intends to grant awards of restricted shares at 75% of salary to the CEO which

willvest subject to continued employment and the achievement of an underpin measured over

athree-year period, 2026 to 2028. A two-year post-vesting holding period will also apply.

Shareholding guidelines

200%

in employment

Executive Directors are expected to build a

shareholding equivalent to 200% of base salary

over five years. All vested share awards are

required to be held (net of tax) until this

guideline has been achieved.

200%

post-cessation

Executive Directors have a post-cessation

minimum shareholding requirement of 200%

of their base salary (or actual holding if lower)

for two years from leaving.

FY2026 bonus metrics

50% Adjusted EBIT*

20% Adjusted

Cashflow

30% Non-Financial

Objectives

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Ibstock Plc | Annual Report and Accounts 2025

30%

20%

50%

2025 Directors’ Remuneration Policy

Introduction

The Directors’ Remuneration Policy was approved by shareholders at the AGM on 15 May 2025 and became effective from that date until the 2028 AGM (or until another Remuneration Policy is approved,

if sooner). A summary of the 2025 Policy is set out below and a full version can be found in the 2024 Annual Report, available on our website at: https://www.ibstock.co.uk/investors/reports-and-presentations.

Remuneration Policy table

The following table sets out, for each element of pay, a summary of how remuneration is structured and how it supports the Company’s strategy.

Link to strategic objectives Operation Maximum opportunity Performance metrics

Base salary

Provides a base level of remuneration to support

recruitment and retention of Executive Directors

with the necessary experience and expertise to

deliver the Group’s strategy.

Salaries are normally reviewed annually, and

changes are normally effective from 1 April.

The annual salary review of Executive

Directorstakes a range of factors into

consideration, including:

@ Business performance.

@ Salary increases awarded to the overall

colleague population.

@ Skills and experience of the individual over

time.

@ Scope of the individual’s responsibilities.

@ Changes in the size and complexity of the

Group.

@ Market competitiveness assessed by periodic

benchmarking.

@ The underlying rate of inflation.

Base salary increases are awarded at the

discretion of the Remuneration Committee

(Committee); however, salary increases will

normally be no greater than the general increase

awarded to the wider workforce, in percentage of

salary terms.

Percentage increases beyond those granted to

the wider workforce may be awarded in certain

circumstances, such as when there is a change

inthe individual’s role or responsibility or where

there has been a fundamental change in the

scale or nature of the Company or to address

salaries that have fallen behind market rates.

In addition, a higher increase may be made where

an individual had been appointed to a new role at

below-market salary whilst gaining experience.

Executive Directors’ performance is a factor

considered when determining salaries. No

recovery or withholding provisions apply.

Benefits

Benefits in kind offered to Executive Directors are

provided to enable the Company to recruit and

retain Executive Directors with the experience

and expertise to deliver the Group’s strategy.

The Executive Directors receive a company car or

car allowance, private health cover and death in

service cover.

Executive Directors may become eligible for other

benefits which are introduced for the wider

workforce on broadly similar terms.

Additional benefits may be offered such as

relocation allowances on recruitment.

There is no maximum cap on the value of

benefits. The value will depend on the cost of

providing the relevant benefits. The Company

has monitoring practices in place to ensure spend

on benefits is efficient.

Not performance-related.

No recovery or withholding provisions apply.

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2025 Directors’ Remuneration Policy continued

Link to strategic objectives Operation Maximum opportunity Performance metrics

Pension

To provide a contribution towards retirement.

Directors are eligible to receive employer

contributions to the Company’s pension plan

(which is a defined contribution plan) or a salary

supplement in lieu of pension benefits, or a

mixture of both.

The maximum contribution into the defined

contribution plan or salary supplement in lieu of

pension is aligned with the workforce

contribution rate which is currently 10% of gross

basic salary.

Not performance-related.

No recovery or withholding provisions apply.

Annual and Deferred Bonus Plan

(‘ADBP’)

The ADBP rewards the achievement of achieving

stretching objectives that are closely aligned with

the Company’s strategy and the creation of value

for shareholders.

Delivery of a proportion of the bonus in deferred

share awards enhances alignment between

executives and shareholders.

ADBP awards are determined based on measures

and targets that are agreed by the Committee.

Annual bonus measures are typically based on

performance over the relevant financial year.

One-half of the bonus earned will be deferred

inshares for three years with the remainder paid

in cash. The deferred amount will reduce to

one-third once the shareholding guideline has

been achieved (as measured at the end of the

financial year directly prior to the payment of

abonus).

At the discretion of the Committee, participants

may also be entitled to receive the value of

dividends paid between grant and vesting on

vested shares. The payment may assume

dividend reinvestment.

Bonus payments, including deferred awards, are

subject to recovery and withholding provisions.

The maximum bonus deliverable under the ADBP

is 150% of a participant’s annual base salary.

Typically, half of the maximum opportunity will

be payable for delivering target performance.

Performance measures are determined by the

Committee each year and may vary to ensure

that they promote the Company’s long-term

business strategy and shareholder value.

The majority of the bonus will be based on

financial measures. This may be a single measure,

such as profit, or a mix of measures as determined

by the Committee. Personal objectives and/or

strategic KPIs may also be chosen.

Where a sliding scale of targets applies to

financial measures, up to 20% of that element

may be payable for threshold performance.

The ADBP measures are reviewed annually, and

the Remuneration Committee has the discretion

to vary the mix of measures or to introduce new

measures taking into account the strategic focus

of the Company at the time.

The Committee has discretion to make

downward or upward adjustments to the amount

of bonus earned resulting from the application of

the performance measures, if the Committee

believes that the bonus outcomes are not a fair

and accurate reflection of overall business

performance. Any examples of such discretion

will be communicated to shareholders in the

annual Directors’ Report on Remuneration.

Malus and clawback provisions apply

(seepage100).

Remuneration Policy table continued

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Link to strategic objectives Operation Maximum opportunity Performance metrics

Long-term incentives

Restricted shares incentivise long-term decision-

making for sustainable growth, they align

Executives’ interests with the business strategy,

and help recruit and retain Executives.

Restricted share awards are granted annually to

Executive Directors in the form of a conditional

share award, nil (or nominal) cost option under

the Ibstock Long Term Incentive Plan (LTIP).

Awards will vest at the end of a three-year vesting

period subject to: the Executive Director’s

continued employment at the date of vesting;

and satisfaction of the restricted share underpin.

A post-vesting holding period of two years will

apply for restricted awards.

Dividends may accrue on vested restricted share

awards during the vesting and holding periods.

Restricted share awards are subject to recovery

and withholding provisions.

The normal maximum grant level is 75% of

salary per annum based on the market value at

the date of grant set in accordance with the rules

of the LTIP. In exceptional circumstances, such as

recruitment, the Committee may grant an award

with a maximum of 100% of salary.

Restricted share awards are not subject to

performance measures but vesting is subject

tothe achievement of an underpin normally

reviewed over the three financial years

commencing with the financial year in which

awards are granted.

The Committee will apply an underpin to

restricted share awards which will enable it to

reduce vesting if there has been material

underperformance. In this regard, the Committee

will consider firstly how well the management

team has executed the strategic objectives set by

the Board over the three-year period. The

Committee will then assess performance against

a thematic framework based on:

@ financial health, including consideration of

revenue, profit, return on capital and balance

sheet strength;

@ stakeholder experience including consideration

of the shareholder experience, employees,

health and safety, customers and suppliers; and

@ sustainability objectives, including progress on

emissions reduction and social impact.

All employee share plans

Encourage employees, including the Executive

Directors, to build a shareholding through the

operation of all employee share plans such as

theShare Incentive Plan (‘SIP’) and Sharesave.

Such plans increase alignment between

employees and shareholders.

The Company operates a SIP and a Sharesave

scheme in which the Executive Directors are

eligible to participate (both schemes are in line

with HMRC legislation and are open to all

eligiblestaff).

The Executive Directors shall be entitled to

participate in any other all employee

arrangement implemented by the Company.

Maximum opportunity for awards and purchases

are kept in line with HMRC limits.

The Company in accordance with the legislation

may impose objective conditions on participation

in the SIP for employees.

2025 Directors’ Remuneration Policy continued

Remuneration Policy table continued

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98Ibstock Plc | Annual Report and Accounts 2025

Link to strategic objectives Operation Maximum opportunity Performance metrics

Shareholding guidelines

Encourages Executive Directors to build a

meaningful shareholding in the Group so

astofurther align their interests with those

ofshareholders.

Executive Directors will normally be required to

retain shares from all share awards vesting (after

the sale of any shares to settle tax due) until they

have reached the required level of holding.

Shares owned outright by the Executive Director

or a connected person are included.

Shares or share options which remain subject to

aperformance condition are not included.

Unvested deferred bonus awards and vested LTIP

or restricted share awards which remain

unexercised count towards the in-employment

guideline on a net of tax basis.

During employment: Executive Directors are

required to build and retain a shareholding

equivalent to at least 200% of their base salary.

Post-employment: Executive Directors are

normally required to hold shares at a level equal

to the lower of their shareholding at cessation or

200% of salary for two years post cessation.

No performance metrics apply.

Non-Executive Director and Chair fees

Provides a level of fees to support recruitment

and retention of Non-Executive Directors and a

Chair with the necessary experience to advise

and assist with establishing and monitoring the

Group’s strategic objectives.

The Board is responsible for setting the

remuneration of the Non-Executive Directors.

The Remuneration Committee is responsible for

setting the Chair’s fees. Non-Executive Directors

are paid an annual fee and additional fees may

be paid for chairship and membership of

Committees. The Chair does not receive any

additional fees for chairing or membership

ofCommittees.

Non-Executive Directors and the Chair do

notparticipate in any variable remuneration

orbenefits arrangements other than

reimbursedexpenses.

Fees are reviewed annually in the context of

feesinplace for equivalent roles in comparable

companies and to reflect time commitment

andresponsibility.

The Company will pay reasonable expenses

incurred by the Non-Executive Directors and

Chair and may settle any tax incurred in relation

to these.

In exceptional circumstances if there is a

temporary, yet material, increase in the time

commitments for Non-executive Directors, the

Group Board may pay extra fees to recognise

that additional workload.

Not performance related.

2025 Directors’ Remuneration Policy continued

Remuneration Policy table continued

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Financial Statements Additional Information

Ibstock Plc | Annual Report and Accounts 2025

Executive Director service contracts

The Company does not have agreements with any Director that would provide compensation for

loss of office or employment resulting from a takeover except that provisions of the Company’s

share schemes and plans may cause share options and awards granted to colleagues under such

schemes and plans to vest on a takeover. All Executive Directors have rolling service agreements

which may be terminated in accordance with the terms of these agreements. The maximum notice

period is 12 months from either the Executive or the Company. Directors’ service agreements are

kept for inspection by shareholders at the Company’s registered office.

Name Date of joining Ibstock Date of service contract Notice Period

Joe Hudson 2 January 2018 12 October 2017 12 months either party

Non-Executive Director letters of appointment

The Chair and each Non-Executive Director are engaged under a market-standard appointment

letter, which states that the appointment will continue for a renewable three-year term provided that

the appointment must not continue for more than nine years in total, unless exceptional

circumstances apply. In any event, each appointment is terminable by either party on one-month’s

written notice with no other right to compensation for loss of office. All Non-Executive Directors are

subject to annual re-election at each AGM. The dates of appointment of each of the Non-Executive

Directors holding office at the end of the 2025 financial year are summarised in the following table.

Name Date of joining Ibstock

Date of service contract/

letter or engagement

Richard Akers 5 May 2025 25 March 2025

Louis Eperjesi 1 June 2018 19 April 2018

Peju Adebajo 26 November 2021 25 November 2021

Nicola Bruce 29 March 2023 14 March 2023

Claire Hawkings 1 September 2018 19 April 2018

Justin Read 1 January 2017 19 December 2016

2025 Directors’ Remuneration Policy continued

Malus and clawback

The ADBP and the LTIP include best practice malus and clawback provisions. Malus is the

adjustment of unpaid bonus and deferred share awards under the ADBP and outstanding LTIP

awards as a result of the occurrence of one or more circumstances listed below. The adjustment may

result in the value being reduced to nil.

Clawback is the recovery of payments or vested awards under the ADBP and vested LTIP awards as a

result of the occurrence of one or more circumstances listed below. Clawback may apply to all or part

of a participant’s award and may be effected, among other means, by requiring the transfer of

shares, payment of cash or reduction of awards or bonuses. The circumstances in which malus and

clawback could apply are as follows:

@ discovery of a material misstatement resulting in an adjustment in the audited accounts of the

Group or any Group company;

@ the assessment of any performance condition or condition in respect of an ADBP and LTIP Award

was based on error, or inaccurate or misleading information;

@ the discovery that any information used to determine the cash payment under the ADBP or the

number of shares subject to an ADBP or LTIP Award was based on error, or inaccurate or

misleading information;

@ action or conduct of a participant which amounts to fraud, gross misconduct or serious misconduct;

@ events or the behaviour of a participant have led to the censure of a Group company by a

regulatory authority or have had a significant detrimental impact on the reputation of any Group

company provided that the Board is satisfied that the relevant participant was responsible for the

censure or reputational damage and that the censure or reputational damage is attributable to

the participant (including on account of management oversight as relevant); or

@ the Company or a material proportion of the Group becoming insolvent or otherwise suffering a

significant corporate failure.

Annual Bonus Deferred Bonus Long Term Incentive Plan

Malus Up to the date of payment

of a cash bonus

To the end of the three-

year deferral period

(i.e. three years post the

bonus determination)

To the end of the three-

year vesting period

Clawback Five years post the bonus

determination

N/A Until two years post-vesting

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100Ibstock Plc | Annual Report and Accounts 2025

231

461

923

686

461

923

686

461

686686

Illustrations of the application of the Remuneration Policy

The chart below illustrates the total remuneration that would be paid to the CEO, based on the

proposed FY2026 salaries, under four different performance scenarios: (i) minimum; (ii) on target;

(iii) maximum; and (iv) maximum including the impact of a 50% increase in share price on the

restricted share outcome.

Element Minimum On-target Maximum

Maximum

including share price

appreciation

Fixed

(salary

, benefits

andpension

)

Included Included Included Included

Annual bonus

(150% of salary)

Not

included

50%

of maximum

100%

of maximum

100%

of maximum

Restricted shares

(75% of salary in 2026)

Not

included

100%

of maximum

100%

of maximum

100%

of maximum

Share price gain

(50% over three years)

Not

included

Not

included

Not

included

50% of the

maximum

restricted

shares value

1 FY2026 base salaries of £615,000 for Joe Hudson.

2 Based on 2025 benefits values and a 10% of salary pension contribution.

100%

42%

33%

30%

29%

45%

40%

29%

22%

20%

10%

Joe Hudson (CEO)

Fixed

Annual Bonus

LTIP

Share Price Appreciation

Minimum

£3,000

£500

£1,000

£1,500

£2,000

£2,500

On target Maximum Maximum

including

share price

appreciation

£’000

686

1,608

2,069

2,300

2025 Directors’ Remuneration Policy continued

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Ibstock Plc | Annual Report and Accounts 2025

Annual Report on Remuneration

This section of the Directors’ Remuneration Report has been

prepared in accordance with the UK disclosure requirements:

theLarge and Medium-Sized Companies and Groups (Accounts

and Reports) (Amendment) Regulations 2013 (Schedule 8

totheRegulations).

The Annual Statement and Annual Report on Remuneration

willbe put to a single advisory shareholder vote at the AGM on

21May 2026.

This part of the report comprises five sections:

1. Remuneration for 2025 Page 102

a. Single total figure of Directors’ remuneration (audited)

b. 2025 Annual and Deferred Bonus Plan outcome (audited)

c. LTIP 2023 vesting (audited)

d. Payments for loss of office

2. Directors’ share ownership

and share interests Page 105

a. Restricted share and ADBP awards granted in 2025 (audited)

b. Outstanding LTIP and ADBP awards

c. Statement of Directors’ shareholdings and share interests

(audited)

3. Pay comparison Page 107

a. Percentage change in Directors’ remuneration versus

employee pay

b. Total Shareholder Return (‘TSR’) and CEO single figure history

c. Relative importance of spend on pay

4. Remuneration Committee membership,

governance and voting Page 109

a. Remuneration Committee membership

b. Independent advisers

c. Statement of voting at the General Meeting

5. Implementation of the Remuneration

Policy in 2026 Page 109

1. Remuneration for 2025

Single total figure of Directors’ remuneration (audited)

The total remuneration of the individual Directors who served during the financial year is shown below.

Base

Salary/Fee Benefits

Pension

Total Fixed

Remuneration

Annual

Bonus LTIP

2,3

Total Variable

Remuneration

Total

Remuneration

Executive Directors

Joe Hudson

(CEO)

2025 £572,786 £9,078 £57,279 £639,143 £378,203 £37,766 £415,969 £1,055,112

2024 £532,239 £8,361 £53,224 £593,824 £448,952 £320,810 £769,762 £1,363,586

Non-Executive Directors

Richard Akers

2025 £142,856 – – £142,856 – – – £142,856

2024 – – – – – – – –

Peju Adebajo

2025 £59,912 – – £59,812 – – – £59,812

2024 £58,380 – – £58,380 – – – £58,380

Nicola Bruce

2025 £71,659 – – £71,659 – – – £71,659

2024 £69,826 – – £69,826 – – – £69,826

Louis Eperjesi

2025 £71,373 – – £71,373 – – – £71,373

2024 £69,547 – – £69,547 – – – £69,547

Claire Hawkings

2025 £71,659 – – £71,659 – – – £71,659

2024 £69,826 – – £69,826 – – – £69,826

Justin Read

2025 £71,659 – – £71,659 – – – £71,659

2024 £69,826 – – £69,826 – – – £69,826

Past Directors

Chris McLeish

(CFO)

2025 £294,527 £1,235 £29,453 £325,215 £0 £0 £0 £325,515

2024 £358,097 £16,334 £35,810 £410,241 £302,061 £215,845 £517,90 6 £928,147

Jonathan Nicholls

2025 £77,953 – – £77,953 – – – £77,953

2024 £204,301 – – £204,301 – – – £204,301

1 Taxable benefits in the 2025 financial year comprised a company car allowance, private health cover and death in service cover. Joe Hudson and Chris McLeish were entitled to receive either a

company car or a car allowances of £18,000 and £15,000 per annum, respectively.

2 The 2025 LTIP figure relates to the LTIP award granted in April 2023. Based on the completed performance period to 31 December 2025, this award will vest at 6.25% of maximum. As the vesting

date for this award is after the date this report is being signed off, the value of this award is based on the three-month average share price to 31 December 2025 of 133.5 pence. No discretion was

applied to determine the vesting outcome and none of the 2023 LTIP value shown is attributed to share price growth over the vesting period.

3 The 2022 LTIP figures included in the 2024 values in last year’s report were estimated as the TSR performance period had not ended. The TSR estimated vesting was 21.34% out of 30% and this

has been updated for the actual vesting of 21.35% out of 30%. These figures have also been updated to reflect the actual share price on the vesting date (166 pence) and the value of dividends

accrued between grant and vesting. Last year’s values had been based on the average three-month share price to 31 December 2024 (188.3 pence).

4 Richard Akers joined the Board as an Independent Non-Executive and Chair Designate on 5 May 2025 and took on the role of Chair at the 2025 AGM on 15 May 2025.

5 Chris McLeish stepped down from the Board on 10 October 2025.

6 Jonathan Nicholls stepped down from the Board at the 2025 AGM on 15 May 2025.

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Ibstock Plc | Annual Report and Accounts 2025

2025 Annual and Deferred Bonus Plan (‘ADBP’) outcome (audited)

In 2025, the Executive Directors were eligible for an annual bonus, subject to meeting performance

objectives, established at the beginning of the financial year by reference to suitably challenging

corporate goals over the 12-month period.

The Annual and Deferred Bonus Plan targets and performance-related outcomes were as follows:

Metrics Weighting

Threshold

(0%) Ta rge t (5 0%)

Maximum

(100%)

Actual

Performance % Outcome

FY Adj EBIT* 50% £50.1m £55.7m £59.6m £39.7m 0%

FY Adj Cash flow* 20% £25.9m £28.8m £30.8m £34.6m 20%

Non-Financial

Objectives 30%

A summary of the personal objectives and performance

is outlined below.

Non-financial objectives

Joe Hudson

Objective area Assessment Actions completed

Operations/HSE 7/15%

1. Deliver the Safe Reliable

Production System plan

including new HSE roadmap.

2. Commission the Atlas facility in

accordance with the plan.

Four roadmaps developed and 24 HSE site visits.

TIFR targets have not improved in 2025.

Atlas has achieved 65% commissioning rate.

Customer and market 10/15%

1. Grow market share through

enhanced customer experience

and superior fulfilment across

core products.

2. Access new segments with

theorganisational capability

todeliver.

4% improvement to surveyed customer

experience.

> 93% of orders On Time In Full and

InvoicedCorrectly.

Increase in brick market share by c.1%

Enhancements to the Specification team.

Objective area Assessment Actions completed

Innovation and sustainability 25/30%

1. Delivery of all new product

development (‘NPD’) priorities,

sustainability targets and social

value strategy for the year.

2. Delivery of the Nostell ceramics

façade factory project plan and

customer development.

3. Replace legacy BI platform

andincluding ERP project

migration plan.

25% new and more sustainable products

including FastWall.

5% reduction in carbon per brick in year.

Nostell commissioning on schedule.

All planned IT/IS projects complete.

Strategy 20/20%

Strategic review and appraisal of

Estates and business line portfolio

with recommendations and

actionplan.

In depth strategic process conducted with

five-year options for manufacturing footprint.

Disposal of Roofing and non-strategic

landassets.

Calcined Clay project nearing completion.

People, culture and compliance 15/20%

Improve organisational HR processes

and reward systems and implement

the new compliance framework.

Progress and actions taken on factory team

population and in pay simplification.

Reorganisation of Group overhead in Q4 to

rightsize and simplify organisation.

Compliance refresh rolled out with improved

audit assurance.

Total 77/100%

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103Ibstock Plc | Annual Report and Accounts 2025

Non-financial objectives continued

Joe Hudson continued

Overall the assessment on the CEO’s personal objectives was 77% (23% out of 30%). As such,

JoeHudson’s total ADBP outcome was 43% of maximum.

Chris McLeish resigned and stepped down from the Board during the year and therefore was not

eligible for a 2025 annual bonus.

Maximum bonus

opportunity

(% of salary)

Bonus payout

(% of maximum)

Bonus earned

(£000s)

Joe Hudson 150% 43% £378,203

One half of the 2025 bonus earned will be paid in cash and the remaining half will be deferred in

shares under the ADBP for three years. There are no performance conditions attached to the vesting

of deferred shares and these awards vest subject to continued employment.

2023 LTIP vesting (audited)

The three-year performance period for the LTIP awards granted on 3 April 2023 ended on

31December 2025. The Committee reviewed the performance against the four performance

conditions and determined an overall vesting level of 6.25%.

Measure Weighting (%)

Threshold

(25% ve sting)

Maximum

(100% vesting) Actual

Vesting

(% of total award)

Adjusted EPS* 25% 17.0 p 24.4p 5.7p 0%

ROCE*

(annual average) 25% 17.4% 19.23% 5.8% 0%

Relative TSR 30% Median

Upper

Quartile

Below

Median 0%

Sustainability

Measure (Carbon

Intensity) 10% 0.131 0.123 0.138 0%

Sustainability

Measure

(Senior Leader

Female

Representation) 5% 32% 40% 32% 1.25%

Sustainability

Measure

(New and More

Sustainable Product

Development) 5%

16% of sales

revenue

22% of sales

revenue 25% 5%

Total 100% – – – 6.25%

The Adjusted EPS* outcome for FY25 was 5.7 pence. EPS performance was below threshold and

consequently this measure will vest at 0%.

ROCE* (annual average) for the three-year performance from FY2023 to FY2025 outcome was

5.8%. This measure also included the adjustment for Atlas and Nostell major growth projects to

ensure the outcome and targets are on a like-for-like basis and will vest at 0%.

TSR performance over the three year period was below the median of the FTSE 250 excluding

investment trusts and therefore, this part of the award will vest at 0%.

The Sustainability Measure of Carbon Intensity (tonnes of Carbon per tonnes of finished production)

accounted for 10% of the award. The Carbon Intensity outcome was 0.138 tonnes of carbon per

tonne of finished production. This measure will vest at 0%. The diversity measure was at threshold

and will vest at 1.25%. The revenues from new and sustainable product measure was 25% of group

revenue and as this was above the maximum target of 22%, this part of the award will vest in full.

The value of vested awards as set out in the single figure table is consequently based on a vesting

level of 6.25%. It uses the average three-month share price to 31 December 2025 of 133.5 pence.

Date of grant

Number of

awards granted Vesting

Number of

awards vesting

Estimated value

of awards vesting

Joe Hudson 3 April 2023 452,632 6 .25% 28,289 £37,766

Confirmation of 2022 LTIP vesting

The LTIP award granted on 14 April 2022 was based on relative TSR, EPS* and ROCE*. The three-year

performance period for the award ended on 31 December 2023 in respect of the EPS measure and

on 13 April 2025 for the relative TSR measure.

In last year’s report, the estimated TSR vesting was 71.1% based on a calculation conducted prior to

signing off the Report. The actual final calculation was performed after the end of the performance

period, and the vesting outcome was unchanged at 71.15% of this part of the award vesting.

Measure Weighting Threshold Maximum Actual

Vesting

(% of total

award)

ROCE

(annual average) 25% 17.6 4% 19.50% 14.6% 0%

Adjusted EPS (2024) 25% 16.9p 22.1p 7.7p 0%

Relative TSR (estimated vesting) 30% Median

Upper

Quartile

Between Median

and Upper Quartile 21.34%

Sustainability Measure (Carbon

Intensity) 10% 0.132 0.124 0.148 0%

Sustainability Measure (Senior

Leader Female Representation) 5% 31% 37% 34% 3.13%

Sustainability Measure (New

and More Sustainable Product

Development) 5%

16% of

sales

revenue

20% of

sales

revenue 22% 5%

Total 100% – – – 29.47%

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Ibstock Plc | Annual Report and Accounts 2025

Confirmation of 2022 LTIP vesting continued

The single figure value for 2024 has been updated to include dividends that accrued over the vesting

period and to reflect the share price of 166 pence on last business day (11 April 2025) prior to the

vesting date of 13 April 2025.

Payments to former Directors and loss of office payments (audited)

The Company announced on 30 April 2025 that Chris McLeish had decided to step down from his

role as Chief Financial Officer. Chris’ final day with the Group was 10 October 2025. Remuneration

arrangements in respect of his departure reflect contractual entitlements, the Directors’

Remuneration Policy approved by shareholders at the 2025 AGM and the Rules of the relevant share

plans under which he held share interests.

Chris received his base salary, contractual benefits and pension contributions in accordance with

hisservice agreement up to and including 10 October 2025, when he ceased to be employed by

theGroup. No further payments relating to base salary, benefits or pension will be made to Chris

following his departure from the Group. There will be no payment in lieu of notice for the balance

ofChris’ unexpired notice period.

Chris was not eligible for an annual bonus payment in respect of the 2025 financial year and did

notreceive a restricted share award in 2025. His unvested LTIP awards (granted on 3 April 2023

and3April 2024) and deferred bonus awards (granted on 16 March 2023, 22 March 2024 and

20March 2025) lapsed upon cessation of employment. Vested shares previously granted under

theLTIP were retained and remain subject to any relevant holding periods.

2. Directors’ share ownership and share interests

LTIP and ADBP awards granted in 2025 (audited)

2025 LTIP award grant

On 23 May 2025, the following restricted share award, structured as a nil cost option, was made

under the LTIP to the CEO:

Name Date of grant

Basis of award

(% of salary)

Face value of the

awards at grant

Number of shares

under award Date of Vesting

Joe Hudson 23 May 2025 75% £438,750 228,753 23 May 2028

1 Share price by reference to which the awards were granted is £1.918 (closing middle market quotation on 22 May 2025).

Awards will vest at the end of a three-year vesting period subject to: the CEO’s continued

employment at the date of vesting; and satisfaction of the restricted share underpin. A post-vesting

holding period of two years will apply for restricted awards. Dividends may accrue on vested

restricted share awards during the vesting and holding periods.

Restricted share awards are not subject to performance measures but vesting is subject to the

achievement of an underpin normally reviewed over the three financial years commencing with

thefinancial year in which awards are granted. The Committee will apply the underpin to restricted

share awards which will enable it to reduce vesting if there has been material underperformance.

Inthis regard, the Committee will consider firstly how well the management team has executed the

strategic objectives set by the Board over the three-year period. The Committee will then assess

performance against a thematic framework based on:

@ Financial health including consideration of revenue, profit, return on capital and balance sheet strength.

@ Stakeholder experience including consideration of the shareholder experience, employees, health

and safety, customers and suppliers.

@ Sustainability objectives including progress on emissions reduction and social impact.

2025 ADBP grant

Under the terms of the Policy, part of the bonus earned for 2024 performance was delivered in the form

of deferred bonus shares under the ADBP. Details of the awards granted are set out in the table below.

Name Date of grant

Basis of award

(% of 2024 bonus)

Face value of the

awards at grant

Number of

shares under

award Date of vesting

Joe Hudson 20 March 2025 33.3% £149,651 81,261 20 March 2028

Chris McLeish

20 March 2025 33.3% £100,687 54,673 N/A

1 The number of Ordinary Shares granted under each ADBP award was calculated using an Ordinary Share price of £1.8416 per share (the average

closing middle market quotation measured over the dealing days falling in the last 30 days of the financial year ending 31 December 2024).

2 Note that Chris McLeish resigned his position in April 2025 and so this award lapsed on the date of his cessation of employment, 10 October 2025.

The ADBP award for the CEO will vest on 20 March 2028, subject to continued employment.

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Ibstock Plc | Annual Report and Accounts 2025

Outstanding LTIP and ADBP awards

Details of all options held by the Directors under the Company’s share plans as at 31 December 2025:

Joe Hudson

Date of Award

Interest at

31 December

2024

Awards

granted in year

Awards vested

in year

Awards lapsed

in year

Awards exercised

in year

Interest at

31 December

2025

Market price on

award date

Exercise/

Option Price Vesting Expiry date

LTIP 2022 578,122 22,891

170,401 407,721 193,292 – £1.72 Nil Cost 2025 14/04/32

2023 452,632 452,632 £1.73 Nil Cost 2026 03/04/33

2024 550,831 550,831 £1.46 Nil Cost 2027 03/04/34

2025 – 228,753 228,753 £1.918 Nil Cost 2028 23/05/35

ADBP 2022 91,325 12,268

91,235 103,593 – £1.98 Nil Cost 2025 14/04/32

2023 116,395 116,395 £1.75 Nil Cost 2026 16/03/33

2024 40,780 40,780 £1.56 Nil Cost 2027 22/03/34

2025 – 81,261 81,261 £1.72 Nil Cost 2028 20/03/35

Sharesave 2025 – 8,048 8,048 N/A £1.14 2028 N/A

Chris McLeish

Date of Award

Interest at

31 December

2024

Awards

granted in year

Awards vested

in year

Awards lapsed

in year

Awards exercised

in year

Interest at

31 December

2025

Market price on

award date

Exercise/

Option Price Vesting Expiry date

LTIP 2022 388,967 15,401

114 ,648 274,319 130,049 – £1.72 Nil Cost N/A 14/04032

2023 304,536 304,536 – £1.73 Nil Cost N/A 03/04/33

2024 370,606 370,606 – £1.46 Nil Cost N/A 03/04/34

ADBP 2022 61,447 8,254

61,447 69,701 – £1.98 Nil Cost N/A 14/04/32

2023 78,312 78,312 – £1.75 Nil Cost N/A 16/03/33

2024 27,437 27,437 – £1.56 Nil Cost N/A 22/03/34

2025 – 54,673 54,673 – £1.72 Nil Cost N/A 20/03/35

1 In line with prior years, upon awards vesting the participant receives dividend equivalents in share options. These are shown in the table above as awards granted in the year for the 2022 LTIP and 2022 ADBP.

Statement of Directors’ shareholdings and share interests (audited)

The share interests of each Director as at 31 December 2025 (together with interests held by connected persons) and, where applicable, achievement of shareholding requirements are set out below.

To align Executives with the interests of shareholders, the Remuneration Committee has implemented shareholding guidelines for Executive Directors. The guidelines require that Executive Directors build

up and maintain an interest in the Ordinary Shares of the Company that is 200% of their annual base salary.

Executive Directors are required to defer one half (reducing back to one third once the shareholding guideline has been achieved) of any bonus earned all vested share awards will be required to be held

(save for any sold to settle tax) until the guideline has been achieved.

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106Ibstock Plc | Annual Report and Accounts 2025

Statement of Directors’ shareholdings and share interests (audited) continued

Shareholding

requirement

% salary

Current shareholding

% salary

Beneficially owned

Unvested interests

subject to performance

conditions

Unvested interests not

subject to performance

conditions

Vested but

unexercised

interests

Outstanding

Sharesave awards

Shareholding

requirement met

Joe Hudson 200% 117% 345,460 1,232,216 126,371 0 8,048 No

Richard Akers N/A – 100,000 – – – – –

Peju Adebajo N/A – 10,000 – – – – –

Nicola Bruce N/A – 5,939 – – – – –

Louis Eperjesi N/A – 20,000 – – – – –

Claire Hawkings N/A – 10,000 – – – – –

Justin Read N/A – 17,5 0 0 – – – – –

1 Current shareholdings includes all shares owned directly, owned by a beneficiary or held through nominees.

2 Unvested interests not subject to performance conditions and vested but unexercised interests are shown post-tax in this table.

3. Pay comparison

Percentage change in Directors’ remuneration versus employee pay

The table below shows the percentage change in salary, benefits and annual bonus earned between the 2025 financial year and the prior year for the Board compared to the average earnings of all of the

Group’s other colleagues. The change in remuneration is also shown for the previous two years.

The Committee monitors the changes year on year between our Director pay and the average employee increase.

2025 2024 2023 2022 2021 2020

Salary/

Fees Benefits

Annual

Bonus

Salary/

Fees Benefits

Annual

Bonus

Salary/

Fees Benefits

Annual

Bonus

Salary/

Fees Benefits

Annual

Bonus

Salary/

Fees Benefits

Annual

Bonus

Salary/

Fees Benefits

Annual

Bonus

Joe Hudson 9.1% (8.6)% (15.8)% 3.5% (29.4)% 134.7% 5.9% (40.8)% (68.7)% 6.8% 27.8% 12.4% 5.3% (5.4)% 100% (3.1)% (5.5)% (100)%

Richard Akers

N/A – – – – – – – – – – – – – – – – –

Peju Adebajo

2.5% – – 3.5% – – 4.8% – – 100% – – – – – – – –

Nicola Bruce

2.5% – – 37. 3% – – – – – – – – – – – – – –

Louis Eperjesi

2.5% – – 9.0% – – 18.5% – – 3.0% – – 6.5% – – (3.3)% – –

Claire Hawkings

4, 5

2.5% – – 3.5% – – 4.8% – – 8.4% – – 19.7% – – (3.1)% – –

Justin Read 2.5% – – 3.5% – – 4.8% – – 2.7% – – 5.3% – – (3.1)% – –

All employees

2.8% (4.3)% 17. 9% 2.0% 1.0% (28%) 2.3%

(16.7)% (78.2)% 10.3% (14.3)% (31.8)% 3.9% 3.8% 100% (8.7)% 0% (100)%

1 Richard Akers was appointed on 5 May 2025 and so there is no disclosed remuneration for prior years.

2 Peju Adebajo was appointed to the Board in November 2021 and received a pro-rated amount of her annual fee in 2021, hence the large % increase in 2022.

3 Nicola Bruce was appointed to the Board in March 2023.

4 Louis Eperjesi was appointed as SID in 2023 and so received an additional fee to reflect this additional responsibility.

5 Claire Hawkings was appointed Chair of the Sustainability Committee in 2021 and so received an additional fee to reflect this additional responsibility.

6 Ibstock Plc as the Parent Company has no employees, therefore employees of the Group employed as full time equivalent for the three years have been used.

7 The 2022 All Employee salary includes a one-off £1,000 or £2,000 cost of living payment to all employees earning less than £30,000 or £50,000 respectively. Without this, the salary increase from 2022 to 2023 would be 6.3%.

Annual Report on Remuneration continued

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Ibstock Plc | Annual Report and Accounts 2025

CEO pay ratio

In line with the reporting regulations, set out below is the ratio of CEO pay compared to the pay of

aUK full-time equivalent employee of the Group for the financial year ended 31 December 2025.

Inline with previous years, we have calculated the ratios using Option A, as described in the

Directors’ Remuneration Reporting Regulations, as we believe that this reflects the most

comprehensive approach.

We expect the pay ratio to vary from year to year, driven largely by variability in incentive outcomes

for the CEO, which will significantly outweigh any other general employee pay changes at Ibstock.

The CEO single total figure remuneration of £1,055,112 is used in the table below.

Year Method 25th Percentile 50th Percentile 75th Percentile

2021 Option A 41:1 30:1 25:1

2022 Option A 44:1 35:1 27:1

2023 Option A 26:1 21:1 16:1

2024 Option A 42:1 33:1 25:1

2025 Option A 34:1 25:1 19:1

The ratios above were determined as at 31 December 2025. The lower ratio this year reflects the

lower bonus and LTIP outcomes for 2025 compared with 2024. The Remuneration Committee is

satisfied that the pay ratio is reasonable and consistent with the Company’s wider policies on

colleague pay, reward and progression.

Set out in the table below is the base salary and total pay and benefits for the CEO and each of the

percentiles for the year ended 31 December 2025.

CEO 25th Percentile 50th Percentile 75th Percentile

Total remuneration £1,055,112 £31,837 £42,501 £57,631

Base salary £572,786 £27,876 £33,488 £43,689

Total Shareholder Return (‘TSR’)

The chart below shows £100 invested in the Company’s shares since 1 January 2016 compared with

the FTSE 250 index and the FTSE 250 Construction and Materials index.

Annual Report on Remuneration continued

The Committee considers that the FTSE 250 is an appropriate index because the Company has

been a member of this index since listing. Additionally, the FTSE 250 Construction and Building

materials index is shown as it reflects the sector in which the Company operates.

CEO historic remuneration

The table below sets out the single total figure of remuneration and incentive outcomes for the Director

holding the post of CEO in each year since Ibstock listed on the London Stock Exchange in 2015.

Year CEO

Single figure

remuneration

% maximum

annual

bonus earned

% maximum

LTIP award

vesting

2016 Wayne Sheppard

789 33% N/A

2017 Wayne Sheppard 906 58% N/A

2018 Wayne Sheppard

184 32.5% 38.5%

Joe Hudson

592 32.5% N/A

2019 Joe Hudson 737 33 .1% N/A

2020 Joe Hudson 540 0% 0%

2021 Joe Hudson 1,104 95.5% 0%

2022 Joe Hudson 1,353 98.5% 33 .1%

2023 Joe Hudson 911 29.4% 25.5%

2024 Joe Hudson 1,363 67.0% 29.5%

2025 Joe Hudson 1,055 43% 6.25%

1 Following the IPO in 2015, no award under the LTIP vested in respect of performance ending in 2016 and 2017.

2 Wayne Sheppard stepped down as CEO and Board Director on 4 April 2018 and his 2018 remuneration has been pro-rated to reflect this.

3 Joe Hudson became CEO on 4 April 2018. His 2018 single figure only includes compensation paid to him in 2018 in his capacity as the CEO from

4 April 2018 to 31 December 2018 and does not include compensation paid to him as CEO designate before 4 April 2018.

100

150

200

250

21 Oct

2015

31 Dec

2016

31 Dec

2017

31 Dec

2018

31 Dec

2019

31 Dec

2020

31 Dec

2025

31 Dec

2024

31 Dec

2023

31 Dec

2022

31 Dec

2021

Ibstock FTSE 250 FTSE 250 Construction and Materials

Source: Thomson Reuters Datastream data as of 23 January 2025

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Ibstock Plc | Annual Report and Accounts 2025

Relative importance of spend on pay

The following table shows the Company’s actual spend on pay for all Group colleagues relative

todividends:

2025 (£m) 2024 (£m) % Change

Staff costs

120 106 13%

Dividends paid 15.8 20 (21)%

1 This is the overall spend on employee pay including Executive Directors (continuing operations). For more information, please see Notes 7 and

31 of the Financial Statements.

4. Remuneration Committee membership, governance and voting

Remuneration Committee membership

The Committee in 2025 comprised Nicola Bruce, Jonathan Nicholls (until the 2025 AGM),

PejuAdebajo, Louis Eperjesi, Claire Hawkings and Justin Read. The Committee is supported by

theGroup’s Company Secretary and met four times during the year and all Committee members

were present.

The Committee also received assistance from the Group People, Sustainability and Social Impact

Director, who attended meetings by invitation, except when issues relating to her own remuneration

were being discussed.

The Sustainability Committee (comprising Claire Hawkings, Peju Adebajo, Louis Eperjesi and

JoeHudson) advises the Committee on the setting and outcome of sustainability performance

measures in the LTIP awards. The Interim CFO attends the Committee by invitation, but are absent

from discussions regarding setting of their own pay arrangements.

The independent adviser to the Committee attends by invitation.

Independent advisers

The Committee takes account of information from both internal and independent sources, including

FIT Remuneration Consultants LLP (‘FIT’) who act as the Committee’s independent adviser. FIT was

appointed by the Committee as a result of a tender process and advised the Remuneration

Committee on all aspects of Executive and Board remuneration, including remuneration trends and

corporate governance best practice. FIT also assisted the Committee with the Policy review.

FIT is a founder member of the Remuneration Consultants’ Group and complies with its Code of

Conduct, which sets out guidelines to ensure that its advice is independent and free of undue

influence. The Committee reviews the performance and independence of its advisers on an annual

basis. The Committee was satisfied that FIT’s advice was independent and objective and that they

had no other connection with the Company or individual directors.

Ibstock incurred fees of £54,200 excluding VAT during 2025 relating to Committee advice. FIT billed

on a fixed fee basis and in addition provided other ad hoc services to management including share

plan advice and TSR performance calculations which were billed on a time spent basis.

Statement of voting at the General Meeting

The Company is committed to ongoing shareholder dialogue and takes an active interest in voting

outcomes. Where there are substantial votes against resolutions in relation to Directors’

remuneration, the Company seeks to understand the reasons for any such vote and will report any

actions in response to it. The following table sets out actual voting at the AGM on 15 May 2025 in

respect of the Directors’ Remuneration Report for the year ended 31 December 2024 and for the

Directors’ Remuneration Policy.

AGM Resolution

Votes for Votes against

Total votes

cast (excluding

withheld)

Votes

withheld

Number

of shares % votes cast

Number

of shares % votes cast

Directors’

Remuneration

Report (2025) 307,270,814 99.87 40,970 0 0.13 307,673,784 1,115,359

Directors’

Remuneration

Policy (2025) 298,960,376 97.17 8,710,089 2.83 307,670,465 1,118 ,678

5. Implementation of Remuneration Policy in 2026

Base salaries

Joe Hudson’s salary will increase to £615,000. This is the second increase of a phased approach to

increasing Joe’s base salary and was subject to continued strong individual performance. The

Committee considered whether to apply a further 2026 workforce increase of 3% to this figure as

was intended last year. However, Joe Hudson requested that this was not to be applied in the

context of continuing market challenges. The Committee is grateful to Joe for his consideration on

this matter.

Salary increases are effective from 1 April 2026 to align with the approach for the wider workforce.

2026 2025

Joe Hudson £615,000 £585,000

Benefits and pension

Pension contribution remains aligned to the wider workforce at 10% of gross base salary.

Benefits are provided in line with the approved Remuneration Policy. Standard benefits will be

provided, including a company car or a cash alternative. Directors also receive private health cover

and death in service cover.

Annual Report on Remuneration continued

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Ibstock Plc | Annual Report and Accounts 2025

5. Implementation of Remuneration Policy in 2026 continued

Annual and Deferred Bonus Plan (‘ADBP’)

The maximum opportunity will be 150% of salary and, as stated on page 104, it is intended that, to

increase the Executive Directors’ individual shareholdings so that they are closer to the existing

guidelines, one half of any bonus earned will be deferred in shares which will vest after three years.

The performance conditions and their weightings for the 2026 annual bonus are as follows:

@ Adjusted EBIT* (50%);

@ Adjusted operating cash flow* (20%); and

@ Non-financial objectives: defined operational/strategic objectives (30%).

The Committee has set appropriately stretching financial targets and in doing so has considered the

internal plan (budget), current market consensus and the prevailing macroeconomic environment.

Maximum payments under these measures will require significant outperformance of internal and

external expectations.

The Committee is of the opinion that, given the commercial sensitivity arising in relation to the

detailed financial targets used for the annual bonus, disclosing precise targets for the ADBP in

advance would not be in shareholders’ interests. Actual targets, performance achieved and awards

made will be published at the end of the relevant performance period so shareholders can fully

assess the basis for any payouts under the annual bonus.

Long Term Incentive Plan (‘LTIP’)

The Committee intends to grant awards of restricted shares at 75% of salary to the CEO and CFO,

subject to continued employment and an underpin measured over a three-year vesting period. The

underpin is set out in the policy table on page 98 and will include an assessment of windfall gains

upon vesting. A two-year post-vesting holding period will also apply.

Malus and Clawback provisions apply to the ADBP and LTIP awards. The circumstances in which

these could be used and a description of these provisions is set out in the policy on page 100. The

period during which these provisions could be used is up to five years after the determination of the

bonus or two years after the vesting of an LTIP which is felt to be an appropriate duration for our

business and in line with broader market practice.

There was no use of the Malus and Clawback provisions during the FY 2025.

Non-Executive Directors’ fees

The 2026 fee levels will increase by 3.0% (2025: 2.5%) in line with the Group pay award (with effect

from 1 April 2026):

Board Fees 2026 2025

Chair

£231,750 £210,945

Board fee (including Committee membership) £62,088 £60,280

Committee Chair (per Committee) £12,173 £11,818

Senior Independent Director £11,877 £11,531

1 Richard Akers joined the Board as Chair Designate on 5 May 2025 and became Chair on 15 May 2025. His Chair fee was set at £225,000 and

will increase to £231,750 from 1 April 2026.

I hope that you find this report to be clear about our remuneration practices and that you will be

supportive at the coming AGM.

Nicola Bruce

Chair of the Remuneration Committee

4 March 2026

Annual Report on Remuneration continued

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110Ibstock Plc | Annual Report and Accounts 2025

Directors’ Report

The Directors’ Report for the year ended

31December 2025 comprises pages 111 to 113

of this report, together with the sections of the

Annual Report incorporated by cross-reference.

The Governance Report on pages 55 to 110 is

incorporated into the Directors’ Report by

cross-reference. As permitted by legislation,

some of the matters required to be included in

the Directors’ Report have instead been included

in the Strategic Report on pages 1 to 54. The

Strategic Report includes an indication of future

likely developments in the Company, details of

important events and the Company’s business

model and strategy.

Principal activity

The principal activity of the Group is the

manufacture and supply of clay and concrete

building products and solutions primarily to

customers in the UK residential construction

sector. Details of the Group’s principal

subsidiaries can be found in Note 29 to the

financial statements.

Results and dividend

The results for the year can be found in the

Group Financial Review on pages 29 to 33 and

these are incorporated into the Directors’

Report by cross-reference.

Post balance sheet events

On 5 March 2026, a final dividend of 1.5 pence

per Ibstock Plc Ordinary Share was proposed to

be paid on 29 May 2026 to shareholders on

record as at 8 May 2026. There were no further

post balance sheet events. See Note 32 on

page164.

Going Concern and Viability Statements

Information relating to the Going Concern and

Viability Statements is set out on pages 53 to

54 of the Strategic Report and is incorporated

into the Directors’ Report by cross-reference.

Annual General Meeting (‘AGM’) 2026

The AGM will be held on 21 May 2026 at

12.00noon at the I-Studio, 54 Hatton Garden,

London, EC1N 8HN. The Notice convening the

meeting together with explanatory notes on

theresolutions to be proposed and full details

ofthe deadlines for appointing proxies is

contained in a circular, which will be circulated

to all shareholders at least 20 working days

before such meeting together with this report.

Board of Directors and their interests

The names and biographies of the Directors as

at the date of this report are shown on pages

58 to 59. The interests of the Directors holding

office at the end of the year in the issued

Ordinary Share capital of the Company and any

interests in Ibstock’s share incentive plans are

given in the Directors’ Remuneration Report on

pa ge 107.

Powers of the Directors

The powers given to the Directors are contained

in the Company’s Articles of Association and

are subject to relevant legislation and, in certain

circumstances, including in relation to the

issuing or buying back by the Company of its

shares, subject to authority being given to the

Directors by shareholders in General Meeting.

The Articles of Association also govern the

appointment and replacement of Directors.

Re-election of Directors

All Directors will retire and submit themselves

for election or re-election, annually, by

shareholders at the AGM. Specific reasons why

each Director’s contribution is, and continues

tobe, important to the Company’s long-term

sustainable success are set out in the Notice.

Directors’ and Officers’ liability

insurance and indemnities

The Company has purchased and maintains

appropriate insurance cover in respect of

Directors’ and Officers’ liabilities. The Company

has also entered into qualifying third party

indemnity arrangements for the benefit of all

its Directors in a form and scope that comply

with the requirements of the Companies Act

2006. These indemnities came into force on

22October 2015 and remain in force as at the

date of this Annual Report. There are no

indemnities in place for the benefit of the

External Auditor.

Amendment of the Articles of

Association

The Articles of Association may be amended

inaccordance with the provisions of the

Companies Act 2006 by way of a special

resolution of the Company’s shareholders.

Share capital and control

Details of the Company’s share capital are

contained in Note 24 to the Group consolidated

financial statements. The rights attaching

tothe shares are set out in the Articles

ofAssociation.

The Company has established a trust in

connection with the Group’s Share Incentive

Plan (the ‘SIP’), which holds Ordinary Shares on

trust for the benefit of employees of the Group.

The Trustees of the SIP trust may vote in respect

of Ibstock shares held in the SIP trust, but only

as instructed by participants in the SIP in

accordance with the SIP trust deed and rules.

The Trustees will not otherwise vote in respect

of shares held in the SIP trust.

The Trustee of the Employee Benefit Trust (the

‘Trust’), which is used to purchase shares on

behalf of the Company as described in Note 25,

has the power to vote or not vote, at its absolute

discretion, in respect of any shares in the

Company held unallocated in the Trust. However,

in accordance with good practice, the Trustee

adopts a policy of not voting in respect of such

shares. In accordance with UK Listing Rule 6.6.4R,

the Company notes that the Trustee has a

dividend waiver in place in respect of shares

that are the beneficial property of the Trust.

Purchase of own shares

At the AGM held on 15 May 2025, shareholders

passed a special resolution in accordance with

the Companies Act 2006 to authorise the

Company to purchase in the market a maximum

of 39,403,381 Ordinary Shares, representing

10% of the Company’s issued Ordinary Share

capital as at the latest practicable date prior to

publication of the AGM circular.

As announced on 10 May 2022, the Company

entered into a Share Buyback programme of an

aggregated value of £30 million in order to return

value to shareholders, in line with the Group’s

capital allocation policy. The Share Buyback

programme concluded on 21 October 2022,

witha total of 16,791,470 shares purchased,

representing a nominal value of £167,914.70

equivalent to 4.1% of the issued capital of the

Company. As at 31 December 2025, 14,961,918

shares purchased are held in treasury, exclusive

of voting and dividend rights. A total of 657,692

shares have been used to satisfy share awards

during the year.

The Directors are seeking renewal of the authority

at the forthcoming AGM, in accordance with

relevant institutional guidelines.

Strategic Report

Governance Report

Financial Statements Additional Information

111Ibstock Plc | Annual Report and Accounts 2025

Directors’ Report continued

Substantial shareholdings

As at 31 December 2025, the Company had been notified, in accordance with the Disclosure

Guidance and Transparency Rules, of the following interests (set out in the table below) in its

Ordinary Share capital.

Name of shareholder Shares disclosed %

Lansdowne Partners 39,282,856 9.95

Janus Henderson Investors 29,574,270 7.49

Vulcan Value Partners, LLC 26,074.875 6.61

JO Hambro Capital Management Limited 26,041,631 6.60

Cobas Asset Management 23,798,177 6.03

Jupiter Asset Management 22,849,013 5.79

Vanguard Group 21,573,860 5.47

Hargreaves Lansdown 21,253,753 5.39

Perpetual Limited 20,316,541 5.15

Ameriprise Financial, Inc 19,329,707 4.90

Man GLG 16,352,946 4.14

Columbia Threadneedle Investments 16,196,889 4.10

Lancaster Investment Management 12,646,219 3.20

Blackrock, Inc. Less than 5% Less than 5%

GLG Partners Less than 5% Less than 5%

In the period from 31 December 2025 to the date of this report, there have been three notifications

made to the Company pursuant to DTR 5. Information provided to the Company under the

Disclosure Guidance and Transparency Rules is publicly available via the regulatory information

service and on the Company’s website.

Significant agreements (change of control)

The Company is required to disclose any significant agreements that take effect, alter or terminate

on a change of control of the Company following a takeover bid.

The Company has committed debt facilities all of which are directly or indirectly subject to change

of control provisions, albeit the facilities do not necessarily require mandatory prepayment on a

change of control.

The debt facilities provide £225 million of funding through £100 million of private placement notes

from Pricoa Private Capital, with maturities of between seven and twelve years at an average total

cost of funds of 2.19%, and £125 million Revolving Credit Facility (‘RCF’) provided by a syndicate of

four banks. The RCF was successfully refinanced during October 2025 and is for an initial four-year

tenure, with a one-year extension option, at a margin of between 1.55% and 2.55%, and also

includes an additional £50 million uncommitted accordion.

In the event of a takeover or other change

ofcontrol (usually excluding an internal

reorganisation), outstanding awards under the

Group’s incentive plans vest and become

exercisable (including Annual and Deferred

Bonus Plan (‘ADBP’) awards, Senior Manager

Share Plan (‘SMSP’) awards and Long Term

Incentive Plan (‘LTIP’) awards), to the extent

any performance conditions (if applicable) have

been met, and subject to time pro-rating

(ifapplicable) unless determined otherwise by

the Board in its discretion, in accordance with

the rules of the plans. In certain circumstances,

the Board may decide (with the agreement of

the acquiring company) that awards will instead

be cancelled in exchange for equivalent awards

over shares in the acquiring company.

Financial instruments

Details of the financial instruments used by

theGroup are set out in Note 23 to the Group

consolidated financial statements, which are

incorporated into the Directors’ Report by

cross-reference. The Group’s financial risk

management objectives and policies are

included in the risk management section on

page 75 and in Note 23 of the Group

consolidated financial statements.

Internal controls

Details of the Group’s internal control

framework can be found on pages 74 to 75.

Research and development

Information relating to research and

development is set out on page 20 of the

Strategic Report and is incorporated into

theDirectors’ Report by cross-reference.

Greenhouse gas emissions

Information relating to the greenhouse gas

emissions of the Company is set out on page

174 and is incorporated into the Directors’

Report by cross-reference.

Political donations

No political donations were made during the

year ended 31 December 2025 (2024: £nil).

Employees

The average number of employees within

theGroup is shown in Note 7 to the Group

financial statements.

The Group is an equal opportunities employer

and considers applications for employment

from disabled persons (having regard to their

particular aptitudes and abilities), and

encourages and assists, wherever practicable,

the recruitment, training, career development

and promotion of disabled people and the

retention of and appropriate training for those

who become disabled during their employment.

Employee engagement

Due to our commitment to transparent and

best practice reporting, we have included our

section on employee engagement on page 46

of the Strategic Report as the Board considers

these disclosures to be of strategic importance

and is therefore incorporated into the Directors’

Report by cross-reference.

Page 37 within the stakeholder engagement

section demonstrates how the Directors have

engaged with employees and how they have

had regard to employee interests and how the

effect of that regard influenced the principal

decisions made by the Company during the

financial year. The section on page 69 provides

examples of the Board’s activities in relation to

assessing and monitoring the Group’s culture.

The Company is also keen to encourage

greateremployee involvement in the Group’s

performance through share ownership. To help

align employees’ interests with the success of

the Company’s performance, it operates an

HMRC-approved all-employee plan, the Ibstock

Plc Sharesave Scheme (‘Sharesave’), which is

offered to UK employees.

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Financial Statements Additional Information

112

Ibstock Plc | Annual Report and Accounts 2025

Directors’ Report continued

Business relationships

The stakeholder engagement section on pages

35 to 38 and the Section 172(1) Statement on

page 34 demonstrate how the Directors have

had regard to its engagement with suppliers,

customers, employees and others and how the

effect of that regard had influenced the

principal decisions taken by the Company

during the financial year. The Board considers

these disclosures to be of strategic importance

and are therefore incorporated into the

Directors’ Report by cross-reference.

Reappointment of auditor

It will be proposed that Deloitte LLP be

reappointed as the Company’s auditor at the

AGM to be held on 21 May 2026.

Disclosure of information to auditor

Each Director of the Company as at the date

of approval of this report confirms that:

(a) so far as the Director is aware, there is no

relevant audit information of which the

Company’s auditor is not aware; and

(b) the Director has taken all the steps that he

or she ought to have taken as a Director in

order to make him/herself aware of any

relevant audit information and to establish

that the Company’s auditor is aware of

that information.

This confirmation is given and should be

interpreted in accordance with the provisions

of Section 418 of the Companies Act 2006.

The Directors’ Report was approved by the

Board of Directors on 4 March 2026 and is

signed on its behalf by order of the Board:

Nick Giles

Group Company Secretary

4 March 2026

Disclosures required under UK Listing Rule 6.6.4R

The information required to be disclosed in accordance with UK Listing Rule 6.6.4R of the Financial Conduct Authority’s Listing Rules can be located in

the following pages of this Annual Report:

Section Information to be included Location

(1) A statement of the amount of interest capitalised Page 144

(3) Details of any long-term incentive schemes Pages 91 to 110

(11) Details of any arrangement under which a shareholder has waived or agreed to waive any dividends Page 111

(12) Where a shareholder has agreed to waive future dividends, details of such waiver, together with those

relating to dividends, which are payable during the period under review

Page 111

(4) – (10), (13) Not applicable Not applicable

The Strategic Report and the Directors’ Report together form the Management Report for the purposes of the Disclosure Guidance and Transparency

Rules 4.1.8R. Information relating to financial instruments can be found on pages 155 to 158 and is incorporated by reference.

Information on our approach to social, environmental and ethical matters can be found on pages 39 to 46.

Strategic Report

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Financial Statements Additional Information

113

Ibstock Plc | Annual Report and Accounts 2025

Directors’ Responsibility Statement

The Directors are responsible for preparing the

Annual Report in accordance with applicable

law and regulations. Company law requires the

Directors to prepare financial statements for

each financial year.

Under that law the Directors are required to

prepare the Group consolidated financial

statements in accordance with United Kingdom

adopted International Accounting Standards and

have elected to prepare the Parent Company

financial statements in accordance with United

Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards),

including FRS 102, the Financial Reporting

Standard applicable in the United Kingdom and

the Republic of Ireland, and applicable law.

Under company law the Directors must not

approve the Annual Report and financial

statements unless they are satisfied that they

give a true and fair view of the state of affairs of

the Group and Company and of the profit or

loss of the Group for that year.

In preparing the Parent Company financial

statements, the Directors are required to:

@ select suitable accounting policies and then

apply them consistently;

@ make judgements and accounting estimates

that are reasonable and prudent;

@ state whether applicable United Kingdom

Accounting Standards have been followed,

subject to any material departures disclosed

and explained in the financial statements; and

@ prepare the financial statements on the

going concern basis unless it is inappropriate

to presume that the Company will continue

inbusiness.

In preparing the Group consolidated financial

statements, International Accounting Standard

No.1 requires Directors to:

@ properly select and apply accounting policies;

@ present information, including accounting

policies, in a manner that provides relevant,

reliable, comparable and understandable

information;

@ provide additional disclosures when

compliance with the specific requirements

ofthe financial reporting framework are

insufficient to enable users to understand the

impact of particular transactions, other events

and conditions on the entity’s financial

position and financial performance; and

@ make an assessment of the Group’s ability to

continue as a going concern and prepare the

financial statements on the going concern

basis unless it is inappropriate to presume

that the Group will continue in business.

The Directors are responsible for keeping

adequate accounting records that are sufficient

to show and explain the Group’s and Company’s

transactions and to disclose with reasonable

accuracy at any time the financial position of

the Group and Company and to enable them to

ensure that the financial statements comply

with the Companies Act 2006. They are also

responsible for safeguarding the assets of the

Company and hence for taking reasonable

steps for the prevention and detection of fraud

and other irregularities.

The Directors are responsible for ensuring

theAnnual Report, including the financial

statements, is made available on a website.

Financial statements are published on the

Company’s website in accordance with

legislation in the United Kingdom governing

thepreparation and dissemination of financial

statements, which may vary from legislation

inother jurisdictions. The maintenance and

integrity of the Company’s website

(www.ibstock.co.uk) is the responsibility of

theDirectors. The Directors’ responsibility

alsoextends to the ongoing integrity of the

financial statements contained therein.

The Directors in office as at 4 March 2026

andwhose names and functions are given on

pages 58 and 59 each confirm that to the best

of their knowledge:

@ the financial statements, prepared in

accordance with the relevant financial

reporting framework, give a true and fair view

of the assets, liabilities, financial position and

profit or loss of the Group and Company and

the undertakings included in the

consolidation taken as a whole; and

@ the Strategic Report and Directors’ Report

include a fair review of the development and

performance of the business and the position

of the Group and Company and the

undertakings included in the consolidation

taken as a whole, together with a description

of the principal risks and uncertainties that

they face.

The Directors consider that this Annual Report,

taken as a whole, is fair, balanced and

understandable, and provides the information

necessary for shareholders to assess the Group’s

position and performance, business and strategy.

This Responsibility Statement was approved by

the Board of Directors on 4 March 2026 and is

signed on its behalf by order of the Board:

Joe Hudson Richard Akers

Chief Executive Officer Chair

4 March 2026 4 March 2026

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Report on the audit of the financial statements

1. Opinion

In our opinion:

@ the financial statements of Ibstock plc (the ‘parent company’) and its subsidiaries (the

‘group’) give a true and fair view of the state of the group’s and of the parent company’s

affairs as at 31st December 2025 and of the group’s profit for the year then ended;

@ the group financial statements have been properly prepared in accordance with United

Kingdom adopted international accounting standards;

@ the parent company financial statements have been properly prepared in accordance with

United Kingdom Generally Accepted Accounting Practice, including Financial Reporting

Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of

Ireland”; and

@ the financial statements have been prepared in accordance with the requirements of the

Companies Act 2006.

We have audited the financial statements which comprise:

@ the consolidated income statement;

@ the consolidated statement of comprehensive income;

@ the consolidated balance sheet;

@ the consolidated statement of changes in equity;

@ the consolidated cash flow statement;

@ the related notes 1 to 32 to the consolidated financial statements;

@ the parent company balance sheet;

@ the parent company statement of changes in equity; and

@ the related notes to 1 to 12 to the parent company financial statements.

The financial reporting framework that has been applied in the preparation of the group financial

statements is applicable law, and United Kingdom adopted international accounting standards.

Thefinancial reporting framework that has been applied in the preparation of the parent company

financial statements is applicable law and United Kingdom Accounting Standards, including FRS 102

“The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom

Generally Accepted Accounting Practice).

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))

and applicable law. Our responsibilities under those standards are further described in the auditor’s

responsibilities for the audit of the financial statements section of our report.

We are independent of the group and the parent company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the

Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest

entities, and we have fulfilled our other ethical responsibilities in accordance with these

requirements. The non-audit services provided to the group and parent company for the year are

disclosed in note 6 to the financial statements. We confirm that we have not provided any non-audit

services prohibited by the FRC’s Ethical Standard to the group or the parent company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

3. Summary of our audit approach

Key audit matters The key audit matters that we identified inthe current year were:

@ Impairment testing of non-current assets; and

@ Classification and accuracy of exceptional items

Within this report, key audit matters are identified as follows:

Increased level of risk

Similar level of risk

Decreased level of risk

Materiality The materiality that we used for the group financial statements was £2.85m

which was determined by considering a number of metrics including net

assets, revenue and profit before tax adjusted for exceptional items.

Scoping We have performed audit procedures on the entire financial information

forfour components and have performed specified audit procedures in

onecomponent. In addition, we have performed review procedures on

components and balances that we did not deem to be significant.

All work has been performed by the group audit engagement team.

Significant

changes in our

approach

Our audit approach remains consistent with the prior year.

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Report on the audit of the financial statements continued

4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern

basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue

to adopt the going concern basis of accounting included:

@ Assessing the reasonableness of assumptions applied by the directors in preparing their forecasts,

including the impact of the recent restructuring activities and the impact of the current

macroeconomic environment;

@ Assessing the historical accuracy of the forecasts approved by the directors;

@ Considering the impact of climate change risks and commitments on the expected cashflows in

the outlook period;

@ Obtaining confirmation for the financing facilities, repayment terms and covenants to test that

these facilities remain available, and evaluating the additional external funding facilities

accessible to the group;

@ Considering the impact of management successfully renewing its RCF agreement in the period

and the ability of the group to refinance its other facilities when they mature;

@ Testing the clerical accuracy and appropriateness of the model used to prepare the forecasts;

@ Challenging the group’s ‘severe but plausible’ case analysis and whether it is appropriate, and

performing sensitivity analysis on key variables, including the appropriateness of the group’s

identified potential mitigating actions;

@ Reperforming the group’s sensitivity analysis, including the group’s reverse stress test;

@ Reading analyst reports, industry data and other external information to determine if it provided

corroborative or contradictory evidence in relation to assumptions used;

@ Considering the recent site closures, and the impact that this could have on the group’s forecasting;

@ Assessing consistency between impairment forecasting and going concern modelling;

@ Obtaining and performing analysis on post year end results and benchmarking this against the

group’s forecasts; and

@ Assessing the appropriateness of the disclosures made within the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to

events or conditions that, individually or collectively, may cast significant doubt on the group’s and

parent company’s ability to continue as a going concern for a period of at least twelve months from

when the financial statements are authorised for issue.

In relation to the reporting on how the group has applied the UK Corporate Governance Code,

wehave nothing material to add or draw attention to in relation to the directors’ statement in the

financial statements about whether the directors considered it appropriate to adopt the going

concern basis of accounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are

described in the relevant sections of this report.

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance

in our audit of the financial statements of the current period and include the most significant

assessed risks of material misstatement (whether or not due to fraud) that we identified. These

matters included those which had the greatest effect on: the overall audit strategy; the allocation

ofresources in the audit; and directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole,

and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

5.1. Impairment of Non-Current Assets

Key audit matter

description

As at 31 December 2025, the group had non-current assets (excluding

post-employment benefit assets) of £544.9m (FY24: £564.8m).

Considering a prolonged downturn in activity levels across the UK

construction industry during FY24 and FY25 and the slower than

previously expected recovery in market demand, the group identified

indicators of potential impairment. In addition, the group took the

decision to restructure operations at its Leicester clay site and close certain

clay sites and have charged a £6.3m impairment against the non-current

assets of these operations accordingly (as detailed within notes 5 and 17).

In line with the requirements of IAS 36 (‘Impairment of Assets’), a full

impairment review was performed at the Cash Generating Unit (‘CGU’)

level, where each CGU represents the smallest identifiable group of assets

that generates cash inflows that are largely independent of inflows from

other assets or groups of assets. The value in use of each CGU was

calculated using cashflows reflecting the group’s best estimate of the

future trading performance of the group. Further details of the cashflows,

and the assumptions made to calculate them, are included within note 17.

The group’s impairment review is sensitive to changes in the key

assumptions, as set out in note 17. Judgement is required to forecast CGU

level cashflows which are derived from the board-approved budget and

strategic plan covering the years 2026-2030, which is underpinned by

assumptions of demand for the group’s products.

Please refer to the Strategic Report, Note 1, Note 13 and Note 17 which

provide further detail on the impairments made, and assumptions applied

to the value in use models. Further details about the group’s consideration

of the climate related risks and opportunities relevant to the value in use

model are disclosed in the TCFD report at page 178.

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How the scope of

our audit

responded to the

key audit matter

To address this key audit matter, we have performed the following procedures:

@ Gained an understanding of the relevant controls surrounding the

valuein use model, including the assumptions, data and the

mechanicalaccuracy;

@ Challenged the group’s CGU determination, by understanding the

products manufactured by each site, how the entities of the group

generate cashflows and how this has remained consistent year on year;

@ Challenged the consistency of the group’s methodology with the

requirements of IAS 36 by engaging our impairment modelling

specialists to review the mechanics of the model and to focus on areas

such as inclusion of working capital and the impact of IFRS 16 (‘Leases’);

@ Performed a search for contradictory evidence including market analyst

reports and housing market demand forecasts to challenge the key

assumptions used;

@ Reviewed historic CGU trading performance and the correlation with

the group’s 5-year outlooks;

@ Validated market size assumptions to external forecasts, including

industry associations and market analyst reports;

@ Working with our Environmental, Social and Governance (‘ESG’)

specialists, challenged the group on their consideration of the climate

related risks and opportunities (as discussed in the TCFD report on

page178) in the value in use model;

@ Working with our valuations specialists, performed an independent

build-up of the Weighted Average Cost of Capital (‘WACC’) to be

included in the model for the purpose of discounting future cash

flows;and

@ Assessed the disclosures included within Notes 1, 13 and 17 for

consistency with the requirements of IAS 36.

Key observations Based on our audit procedures we are satisfied that the assumptions

inthe impairment models are within an acceptable range and that the

group’s impairment charge for restructured and closed sites is reasonable.

We also consider the disclosures, included within the financial statements

to be appropriate.

5.2. Classification and accuracy of exceptional items

Key audit matter

description

The group identified £19.5m (FY24: £11.7m) of exceptional items,

disclosed at the foot of the consolidated income statement (page 124)

and included in the determination of Alternative Performance

Measures(APMs).

The classification of certain income and costs as exceptional is not

defined by UK-adopted international accounting standards and therefore

significant judgement is required in determining the appropriate

classification policy in line with guidance from the FRC and ESMA

(‘European Securities and Markets Authority’).

The classification of costs and income as exceptional within the adjusted

profit metrics (being adjusted EBIT and adjusted EBITDA) is considered by

the group to be a key determinant in assessing the quality of the group’s

underlying earnings. These adjusting items include items which, by virtue

of their size, nature and/or expected infrequency of the events giving rise

to them, merit separate presentation.

We have identified there to be a possible risk of fraud due to inappropriate

manipulation, where items which are not exceptional, are incorrectly

labelled as such in the financial statements. Similarly, we consider the

accuracy of items classified as exceptional to be a key audit matter as

weidentified a risk associated with the quantification of items classified

as exceptional.

Further information on exceptional items can be found in the Audit

Committee Report on page 83, the group’s summary of significant

accounting policies in note 1, note 2, note 3 and note 5.

Report on the audit of the financial statements continued

5. Key audit matters continued

5.1. Impairment of Non-Current Assets continued

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How the scope of

our audit

responded to the

key audit matter

We have performed the following procedures to address this key audit

matter:

@ Obtained an understanding of the relevant management review

controls over the classification of items as exceptional and the

associated accuracy of these items;

@ Challenged the classification policy for items the group proposed to

include as exceptional against FRC and ESMA guidance, including an

assessment of the completeness of such items through benchmarking

against the disclosures of comparable companies;

@ For all significant adjustments, discussed the appropriateness of these

items, their consistency with management’s classification policy, and

disclosure considerations with the Audit Committee;

@ Challenged the appropriateness of including costs relating to sites

impaired in previous restructuring activity as being exceptional in the

current year;

@ Challenged whether costs included as exceptional due to being non-

recurring were incremental to the restructuring activity that they relate to;

@ Agreed a sample of these items to supporting documentation to assess

the accuracy of these items, and the validity of their classification as

exceptional; and,

@ Assessed the adequacy of the disclosures to explain the nature of the

exceptional items.

Key observations We concluded that the exceptional items balance is free from material

misstatement for the year ended 31 December 2025.

6. Our application of materiality

6.1. Materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it

probable that the economic decisions of a reasonably knowledgeable person would be changed or

influenced. We use materiality both in planning the scope of our audit work and in evaluating the

results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a

whole as follows::

Group financial statements Parent company financial statements

Materiality £2.85m (2024: £2.85m) £1.99m (2024: £1.99m)

Basis for

determining

materiality

Our determined materiality is

based on multiple metrics including

profit before tax adjusted for

exceptional items, net assets and

revenue benchmarks.

This year we have refined our

approach to include profit before

tax adjusted for exceptional items

due to the restructuring activity

during the year significantly

reducing profit before tax.

Our materiality is equivalent to:

@ 0.7% of Net Assets

@ 0.8% of Revenue

@ 13.9% of Profit Before Tax

adjusted for exceptional items

(as included in note 5)

3% of net assets capped at 70%

of group materiality consistent with

the prior period.

Rationale for the

benchmark

applied

The revenue and profit of the

group have remained low

compared to historic levels in the

current year, following ongoing

subdued market demand and

trading volumes, however, the

overall size of the group (including

its net assets) remains stable when

compared with previous periods.

Net assets is considered to be an

appropriate benchmark for the

Company given its main function

isthat of a holding company.

Report on the audit of the financial statements continued

5. Key audit matters continued

5.2. Classification and accuracy of exceptional items continued

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Report on the audit of the financial statements continued

6. Our application of materiality continued

6.2 Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that,

inaggregate, uncorrected and undetected misstatements exceed the materiality for the financial

statements as a whole.

Group financial statements Parent company financial statements

Performance

materiality

70% (2024: 70%) of group

materiality

70% (2024: 70%) of parent

company materiality

Basis and

rationale for

determining

performance

materiality

In determining performance materiality, we considered the

followingfactors:

@ Our risk assessment, including our assessment of the quality of the

group’s control environment;

@ The low number of misstatements (corrected and uncorrected) in prior

periods; and

@ The low level of change in the operations of the business from the

prioryear.

6.3. Error reporting threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences

inexcess of £0.14m (2024: £0.14m), as well as differences below that threshold that, in our view,

warranted reporting on qualitative grounds. We also report to the Audit Committee on disclosure

matters that we identified when assessing the overall presentation of the financial statements.

7. An overview of the scope of our audit

7.1. Identification and scoping of components

We have identified the group components to be the legal entities that make up the group.

Wehaveperformed our scoping exercise by assessing the qualitative and quantitative risk factors

associated with the components of the group and the financial statement line items of the group.

Our consideration of risk factors has included considering the group structure and the organisation

of components within the divisions, including the differences in control environment across

thecomponents.

We have scoped in four components for audit procedures of the entire financial information that

together represent 92% (2024: 90%) of revenue and 88% (2024: 88%) of total assets. We have

performed specified audit procedures on an additional component that represents 2% of total

assets. We have also performed audit procedures over the classification and accuracy of exceptional

items across all components and have performed impairment testing over all non-current assets of

the group (excluding the defined benefit pension scheme asset).

We have performed review procedures on components and balances that we did not deem to

besignificant.

Audit of the entire

financial information

Review at group level

Audit of the entire

financial information

Review at group level

Specified audit

procedures

Revenue Net assets

92%

10%

88%

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Report on the audit of the financial statements continued

7. An overview of the scope of our audit continued

7.2. Our consideration of the control environment

The group uses JD Edwards as the main accounting software in the components that have the more

significant classes of transactions, account balances or disclosures within them. The group also uses

Resource Link for payroll management and Onestream for the consolidation. We have assessed the

IT control environment and gained an understanding of the general IT controls operating in the

identified systems. Together with our IT specialists, we have deployed our automated control testing

tool to understand the IT controls on segregation of duties and control configurations within

supporting infrastructure such as Windows AD, Oracle database and Solaris OS. We did not plan to

rely on any of these systems or adopt a control reliance strategy over any business processes or

account balances due to the manual control deficiencies identified in previous periods not being fully

remediated and operating effectively for the entire period (please see below). We also reviewed the

work of Internal Audit who identified some additional control deficiencies.

Throughout our audit we have considered the control deficiencies that were identified in the

priorperiod, and we tailored the timing, nature and extent of our procedures to address the

findingsidentified.

We have gained an understanding of the most relevant control(s) around:

@ Impairment of non-current assets;

@ Classification and accuracy of exceptional items;

@ Management override of controls;

@ Dilapidations and restoration provisions;

@ Going concern;

@ Pension scheme liability;

@ Impact of climate change upon the financial statements; and,

@ Revenue recognition: customer rebates

From this work, we have identified some further deficiencies in the design of controls, which the

group is subsequently taking action to remediate, and we have communicated findings and

deficiencies on internal controls to the Audit Committee. For each deficiency we considered tailoring

the timing, nature and extent of our audit procedures in response.

Please refer to page 89 which refers to the Audit Committee’s response to the deficiencies identified

by both our audit and Internal Audit.

7.3. Our consideration of climate-related risks

The group has continued to develop their understanding of the impact that climate change could

have on their business and have detailed these within the Sustainability Committee report on

page81. This has included monitoring performance against the 2030 targets outlined in the ESG

2030 strategy.

In the Principal Risks and Uncertainties report on page 48, the group have identified the areas of

their business that they think climate change will have the most significant impact on, through both

risks and opportunities. We have used this information and our own knowledge of the business and

the industry it operates in, including through the assistance of our ESG specialists, to perform an

account balance and disclosure level climate change risk assessment.

We have identified risks of material misstatement relating to:

@ the inclusion of climate related cashflows in both impairment testing of non-current assets

(section 5.1) and Going Concern forecasting (section 4);

@ the appropriateness of the assumptions applied in the valuation of the restoration provisions;

@ the useful economic lives of property, plant and equipment, particularly the group’s gas fuelled

kilns, and sites identified as having exposure to climate related physical risks; and

@ the impact that changes in consumer behaviour may have on demand for Ibstock’s products,

andhow this could impact the going concern status of the group.

In response to the risks identified, we performed the following procedures:

@ we have inquired on the risks identified with those charged with governance (TCWG),

management, and others;

@ gained an understanding of the relevant controls operating in the business in relation to

identification of climate rated risks, and the group’s response to those risks;

@ we have reviewed internal and external communications surrounding climate change such as

sustainability reports, group’s risk assessments, press releases and climate-related disclosures;

@ we have gained an understanding of how climate may affect the group’s business and operating

environment and its financial reporting, including, but not limited to:

@ group-specific climate initiatives and commitments;

@ internal and external risk factors affected by climate-related matters including key –

performance indicators, regulatory environment, governance structure; and

@ the group’s assessment of the implications of climate related matters on the financial

statements and control environment;

@ we have assessed the impact of climate-related commitments made in the latest sustainability

report and the impact on accounting for restoration provisions;

@ we have evaluated the directors’ going concern and viability assessment as to whether this

appropriately considered climate related risks and the impact on cashflows;

@ we also challenged the directors as to the impact on the useful economic lives of certain classes

ofassets in relation to sustainability commitments being made in the public domain; and

@ together with our ESG specialists, we have read the climate related disclosures included within

other information of the annual report and assessed the consistency with the financial

statements, the disclosure requirements and knowledge obtained during the audit. Specifically,

wehave reviewed disclosures in the financial statements in notes 13, 17 and 20 to evaluate how

climate related risks have been considered in reaching accounting conclusions.

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8. Other information

The other information comprises the information included in the annual report, other than the

financial statements and our auditor’s report thereon. The directors are responsible for the other

information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to

theextent otherwise explicitly stated in our report, we do not express any form of assurance

conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other

information is materially inconsistent with the financial statements or our knowledge obtained in

the course of the audit, or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to

determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this

other information, we are required to report that fact.

We have nothing to report in this regard.

9. Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for

the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the directors determine is necessary to enable the preparation

of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and the

parent company’s ability to continue as a going concern, disclosing as applicable, matters related to

going concern and using the going concern basis of accounting unless the directors either intend to

liquidate the group or the parent company or to cease operations, or have no realistic alternative but

to do so.

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit ofthe financial statements is located on

theFRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our

auditor’s report.

11. Extent to which the audit was considered capable of detecting irregularities,

including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect material misstatements in

respect of irregularities, including fraud. The extent to which our procedures are capable of detecting

irregularities, including fraud is detailed below.

11.1. Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, we considered the following:

@ the nature of the industry and sector, control environment and business performance including

the design of the group’s remuneration policies, key drivers for directors’ remuneration, bonus

levels and performance targets;

@ the group’s own assessment of the risks that irregularities may occur either as a result of fraud

orerror that was approved by the board on;

@ results of our enquiries of management, internal audit, the directors and the audit committee

about their own identification and assessment of the risks of irregularities, including those that are

specific to the group’s sector;

@ any matters we identified having obtained and reviewed the group’s documentation of their

policies and procedures relating to:

@ identifying, evaluating and complying with laws and regulations and whether they were aware

of any instances of non-compliance;

@ detecting and responding to the risks of fraud and whether they have knowledge of any actual,

suspected or alleged fraud;

@ the internal controls established to mitigate risks of fraud or non-compliance with laws and

regulations; including the fraud risk register which is maintained by management;

@ the matters discussed among the audit engagement team and relevant internal specialists,

including tax, valuations, impairments, data analytics, pensions, IT and ESG regarding how and

where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within

the organisation for fraud and identified the greatest potential for fraud in the following area:

classification and accuracy of exceptional items.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to

respond to the risk of management override.

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11. Extent to which the audit was considered capable of detecting irregularities,

including fraud continued

11.1. Identifying and assessing potential risks related to irregularities continued

We also obtained an understanding of the legal and regulatory frameworks that the group operates

in,focusing on provisions of those laws and regulations that had a direct effect on the determination

of material amounts and disclosures in the financial statements. The key laws and regulations we

considered in this context included the UK Companies Act, Listing Rules, pensions legislation, and

taxlegislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect

on the financial statements but compliance with which may be fundamental to the group’s ability

tooperate or to avoid a material penalty. These included employment law, occupational health and

safety regulations and environmental regulations.

11.2. Audit response to risks identified

As a result of performing the above, we identified the Presentation and Accuracy of Exceptional

Items as a key audit matter related to the potential risk of fraud. The key audit matters section of

our report explains the matter in more detail and also describes the specific procedures we

performed in response to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

@ reviewing the financial statement disclosures and testing to supporting documentation to assess

compliance with provisions of relevant laws and regulations described as having a direct effect on

the financial statements;

@ enquiring of management, the audit committee and in-house and external legal counsel

concerning actual and potential litigation and claims;

@ performing analytical procedures to identify any unusual or unexpected relationships that may

indicate risks of material misstatement due to fraud;

@ reading minutes of meetings of those charged with governance and reviewing internal audit

reports, and correspondence with HMRC;

@ assessing the appropriateness and robustness of management’s response to the inconsequential

fraud identified, and assessed the completeness of the sites in which this fraud was identified; and

@ in addressing the risk of fraud through management override of controls, testing the

appropriateness of journal entries and other adjustments; assessing whether the judgements made

in making accounting estimates are indicative of a potential bias; and evaluating the business

rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all

engagement team members including internal specialists, and remained alert to any indications of

fraud or non-compliance with laws and regulations throughout the audit.

Report on other legal and regulatory requirements

12. Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the directors’ remuneration report to be audited has been properly

prepared in accordance with the Companies Act 2006.

In our opinion the part of the directors’ remuneration report to be audited has been properly

prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

@ the information given in the strategic report and the directors’ report for the financial year

for which the financial statements are prepared is consistent with the financial statements;

and

@ the strategic report and the directors’ report have been prepared in accordance with

applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and

their environment obtained in the course of the audit, we have not identified any material

misstatements in the strategic report or the directors’ report.

13. Corporate Governance Statement

The Listing Rules require us to review the directors’ statement in relation to going concern, longer-

term viability and that part of the Corporate Governance Statement relating to the group’s

compliance with the provisions of the UK Corporate Governance Code specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the

following elements of the Corporate Governance Statement is materially consistent with the

financial statements and our knowledge obtained during the audit:

@ the directors’ statement with regards to the appropriateness of adopting the going concern

basis of accounting and any material uncertainties identified set out on page 53;

@ the directors’ explanation as to its assessment of the group’s prospects, the period this

assessment covers and why the period is appropriate set out on page 15;

@ the directors’ statement on fair, balanced and understandable set out on page 85;

@ the board’s confirmation that it has carried out a robust assessment of the emerging and

principal risks set out on page 48;

@ the section of the annual report that describes the review of effectiveness of risk

management and internal control systems set out on page 89; and

@ the section describing the work of the audit committee set out on page 83.

Independent Auditor’s Report to the members of Ibstock Plc continued

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Report on other legal and regulatory requirements continued

14. Matters on which we are required to report by exception

14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:

@ we have not received all the information and explanations we require for our audit; or

@ adequate accounting records have not been kept by the parent company, or returns adequate

forour audit have not been received from branches not visited by us; or

@ the parent company financial statements are not in agreement with the accounting records

andreturns.

We have nothing to report in respect of these matters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of

directors’ remuneration have not been made or the part of the directors’ remuneration report to be

audited is not in agreement with the accounting records and returns.

We have nothing to report in respect of these matters.

15. Other matters which we are required to address

15.1. Auditor tenure

Following the recommendation of the audit committee, we were appointed by the Board of

Directors on 24 May 2017 to audit the financial statements for the year ending 31 December 2017

and subsequent financial periods. The period of total uninterrupted engagement including previous

renewals and reappointments of the firm is 9 years, covering the years ending 31 December 2017 to

31 December 2025.

15.2. Consistency of the audit report with the additional report to the audit committee

Our audit opinion is consistent with the additional report to the audit committee we are required to

provide in accordance with ISAs (UK).

16. Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of

Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state

tothe company’s members those matters we are required to state to them in an auditor’s report

and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the company and the company’s members as a body, for our

audit work, for this report, or for the opinions we have formed.

As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule

(DTR) 4.1.15R – DTR 4.1.18R, these financial statements will form part of the Electronic Format

Annual Financial Report filed on the National Storage Mechanism of the FCA in accordance with

DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic

Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.

Lee Highton, FCA (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

Birmingham, United Kingdom

4 March 2026

Independent Auditor’s Report to the members of Ibstock Plc continued

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Ibstock Plc | Annual Report and Accounts 2025

Consolidated income statement

		Year ended	Year ended
		31 December	31 December
		2025	2024
	Notes	£’000	£’000
Revenue	4	37 2 ,1 0 4	366,207
Cost of sales	6	(276, 121)	(2 61 , 6 5 0)
Gross profit		95,98 3	10 4 ,5 57
Distribution costs	6	(36 , 389)	(3 4 ,13 9)
Administrative expenses		(51, 7 9 8)	(4 5 , 6 5 0)
Net profit on sale of business and fixed assets		17 8	2 61
Other income		2 ,340	2 , 314
Other expenses		(28 0)	(27 0)
Operating profit	6	10, 0 3 4	27, 0 7 3
Finance costs	8	(9, 8 11)	(8 , 287)
Finance income	9	67 3	1, 8 9 4
Net finance cost		(9 ,13 8)	(6 , 3 93)
Profit before taxation		896	20,680
Taxation	10	2 ,17 8	(5,588)
Profit for the financial year		3 , 0 74	15 , 0 9 2
Profit attributable to:
Owners of the Company		3 , 074	15 , 0 92
		pence per	pence per
	Notes	share	share
Earnings per share
Basic	11	0.8	3. 8
Diluted	11	0.8	3. 8

Non-GAAP measure

Reconciliation of Adjusted EBIT

and Adjusted EBITDA

to operating profit for the financial year:

Year ended Year ended

31 December 31 December

2025 2024

Notes £’000 £’000

Operating profit 10,034 27,073

Add back exceptional cost impacting operating

profit 5 19,478 11,720

Add back incremental depreciation and

amortisation following fair value uplift 4 10,236 10,779

Adjusted EBIT

39,748 49,572

Add back depreciation and amortisation pre fair

value uplift 4 31,296 29,778

Adjusted EBITDA

71,044 79,350

All amounts relate to continuing operations.

The notes on pages 129 to 164 form an integral part of these consolidated financial statements.

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financial

statements.

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Consolidated statement of comprehensive income

		Year ended	Year ended
		31 December	31 December
		2025	2024
	Notes	£’000	£’000
Profit for the financial year		3 , 0 74	15 , 0 9 2
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit or loss
Change in fair value of cash flow hedges 2	23	64	(5 4)
Related tax movements 2	10	(20)	14
		44	(4 0)
Items that will not be reclassified subsequently
to profit or loss
Remeasurement of post-employment benefit
assets and obligations 2	21	(1 , 0 02)	(1, 4 57)
Related tax movements 2	10	324	4 37
		(678)	(1, 0 2 0)
Other comprehensive expense for the year, net
of tax		(6 34)	(1, 0 6 0)
Total comprehensive income for the year, net
of tax		2,440	14 , 0 3 2
Total comprehensive income attributable to:
Owners of the Company		2,440	14 , 0 3 2

The notes on pages 129 to 164 form an integral part of these consolidated financial statements.

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated

financialstatements.

2 Impacting retained earnings.

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Consolidated balance sheet

		At	At
		31 December	31 December
		2025	2024
	Notes	£’000	£’000
Assets
Non-current assets
Intangible assets	12	66,447	73 ,95 0
Property, plant and equipment	13	4 5 5 ,1 4 7	462 , 50 4
Right-of-use assets	27	23, 2 92	28 ,363
Post-employment benefit asset	21	5,984	7, 8 3 9
		550 , 870	57 2 , 65 6
Current assets
Inventories	14	13 7, 4 4 8	124 , 8 19
Current tax recoverable		3 ,18 6	1, 323
Trade and other receivables	15	32 , 273	4 3 , 8 15
Cash and cash equivalents		2 0 ,97 1	9, 292
		193 , 87 8	17 9 , 2 4 9
Assets held for sale	16	–	20 0
Total assets		74 4 , 74 8	7 5 2 ,1 0 5
Current liabilities
Trade and other payables	18	(8 9,4 8 2)	(8 8 , 85 3)
Derivative financial instruments	23	–	(78)
Borrowings	19	(4 1 ,1 5 2)	(31, 4 2 5)
Lease liabilities	27	(9, 58 8)	(9 , 4 7 1)
Provisions	20	(5 , 595)	(3 ,0 10)
		(14 5, 817)	(132 , 8 37)
Net current assets		48,061	4 6 ,612
Total assets less current liabilities		59 8 ,931	619 , 2 6 8

The notes on pages 129 to 164 form an integral part of these consolidated financial statements.

These financial statements were approved by the Board and authorised for issue on 4 March 2026.

They were signed on its behalf by:

Joe Hudson Richard Akers

Chief Executive Officer Chair

		At	At
		31 December	31 December
		2025	2024
	Notes	£’000	£’000
Non-current liabilities
Borrowings	19	(99 ,862)	(9 9 , 42 7)
Lease liabilities	27	(19, 922)	(25 , 611)
Deferred tax liabilities	22	(8 8 , 695)	(9 1, 9 4 0)
Provisions	20	(7, 9 9 2)	(7, 0 27 )
		(216, 471)	(2 24 , 0 05)
Total liabilities		(3 62 , 28 8)	(35 6 , 8 42)
Net assets		382, 460	395, 263
Equity
Share capital	24	4,0 96	4, 096
Share premium	25	4 ,45 8	4,45 8
Retained earnings		769, 76 0	783, 8 0 0
Other reserves	25	(395 ,85 4)	(3 97, 0 9 1)
Equity attributable to owners of the Company		382 ,46 0	3 95, 263
Total equity		382 ,46 0	395 , 263

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126Ibstock Plc | Annual Report and Accounts 2025

Consolidated statement of changes in equity

						Total equity
				Retained	Other reserves	attributable to
		  Share capital	Share premium	earnings	(see Note 25)	owners	Total equity
	 Notes	£’000	£’000	£’000	£’000	£’000	£’000
Balance at 1 January 2025		4,0 96	4 ,45 8	783, 8 0 0	(397,091)	395 , 2 63	39 5, 263
Profit for the year		–	–	3 , 074	–	3 , 074	3 , 074
Other comprehensive (expense)/income		–	–	(67 8)	44	(6 3 4)	(63 4)
Total comprehensive income for the year		–	–	2 , 39 6	44	2,440	2,44 0
Transactions with owners:
Share-based payments	26	–	–	484	–	48 4	48 4
Current tax on share-based payment	10	–	–	45	–	45	45
Deferred tax on share-based payment	22	–	–	13	–	13	13
Equity dividends paid	31	–	–	(15 , 7 8 5)	–	(15 , 7 8 5)	(15 , 78 5)
Issue of own shares held on exercise of share options	25	–	–	(1 ,1 9 3)	1 ,19 3	–	–
At 31 December 2025		4,0 96	4 ,45 8	76 9, 76 0	(395 , 85 4)	382 ,46 0	382 ,460

						Total equity
				Retained	Other reserves	attributable to
		 Share capital	Share premium	earnings	(see Note 25)	owners	Total equity
	 Notes	£’000	£’000	£’000	£’000	£’000	£’000
Balance at 1 January 2024		4 ,096	4 ,45 8	7 9 0, 971	(39 9, 658)	39 9 , 8 67	39 9 , 8 67
Profit for the year		–	–	15 , 0 9 2	–	15 , 0 92	15 , 0 92
Other comprehensive expense		–	–	(1, 0 2 0)	(4 0)	(1, 06 0)	(1 , 0 6 0)
Total comprehensive income/(expense) for the year		–	–	14 , 0 7 2	(4 0)	14 , 032	14 , 032
Transactions with owners:
Share-based payments	26	–	–	1, 25 3	–	1, 2 5 3	1, 2 5 3
Current tax on share-based payment	10	–	–	18	–	18	18
Deferred tax on share-based payment	22	–	–	124	–	124	12 4
Equity dividends paid	31	–	–	(2 0 , 03 1)	–	(2 0 , 031)	(2 0 , 031)
Issue of own shares held on exercise of share options	25	–	–	(2 , 6 07)	2 , 6 07	–	–
At 31 December 2024		4 ,096	4 ,45 8	783, 8 0 0	( 3 97, 0 9 1)	395 , 263	395 , 263

The notes on pages 129 to 164 form an integral part of these consolidated financial statements.

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127Ibstock Plc | Annual Report and Accounts 2025

Consolidated cash flow statement

		 Year ended	Year ended
		31 December	31 December
		2025	2024
	 Notes	£’000	£’000
Cash flow from operating activities
Cash generated from operations	28	48,03 5	62 ,9 06
Interest paid		(7, 7 7 6)	(6 , 2 57)
Other interest paid – lease liabilities		(2,048)	(2 , 49 4)
Tax received/(paid) 		1, 359	(5 0 0)
Net cash inflow from operating activities 		39, 570	53 , 655
Cash flows from investing activities
Purchase of property, plant and equipment		(4 4 ,7 7 6)	(4 5 , 2 35)
Proceeds from sale of property, plant and equipment		3 ,13 4	37 9
Proceeds from disposals of business and fixed
assets – exceptional	5	31, 2 07	–
Purchase of intangible assets		(1 , 912)	–
Refund of deferred consideration		–	17 1
Interest received 		14 2	13 9
Net cash outflow from investing activities 		(1 2,205)	(4 4 , 5 4 6)
Cash flows from financing activities
Dividends paid	31	(15 , 78 5)	(2 0 , 0 3 1)
Drawdown of borrowings		84, 000	87 ,000
Repayment of borrowings		(73 ,000)	(81 ,000)
Debt issue costs		(1, 0 4 0)	–
Repayment of lease liabilities		(9, 9 9 8)	(9,65 1)
Net cash outflow from financing activities 		(15 , 8 2 3)	(2 3 ,6 82)
Net increase/(decrease) in cash and cash
equivalents		11 , 5 4 2	(14 , 57 3)
Cash and cash equivalents at beginning of the year		9, 292	23 , 872
Exchange gains/(losses) on cash and cash
equivalents 		137	(7)
Cash and cash equivalents at end of the year 		20 ,971	9 , 292



The notes on pages 129 to 164 form an integral part of these consolidated financial statements.

Reconciliation of changes in cash and cash equivalents to movement

in net debt



		Year ended	Year ended
		31 December	31 December
		2025	2024
	 Notes	£’000	£’000
Net increase/(decrease) in cash and cash
equivalents		11, 5 4 2	(14 , 573)
Proceeds from borrowings		(84,000)	(8 7 ,000)
Repayment of borrowings		7 3, 000	8 1 ,000
Non-cash debt movement		838	(3 6 4)
Effect of foreign exchange rate changes 		137	(7)
Movement in net debt 1		1 , 517	(20,944)
Net debt 1 at start of year		 (12 1 , 5 6 0)	(1 0 0 , 61 6)
Net debt 1 at end of year	3	(12 0 , 0 4 3)	(1 21,560)
Comprising:
Cash and cash equivalents		20 ,97 1	9, 292
Short-term borrowings	19	(41 ,15 2)	(31, 4 2 5)
Long-term borrowings	19	(99,862)	(9 9, 4 27)
		 (12 0 , 0 4 3)	(121,560)

1 Alternative performance measures are described in Note 3 to the consolidated financial statements.

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128Ibstock Plc | Annual Report and Accounts 2025

Notes to the consolidated financial statements

1. Summary of significant accounting policies

Authorisation of financial statements

The consolidated financial statements of Ibstock Plc, which has a premium listing on the London

Stock Exchange, for the year ended 31 December 2025 were authorised for issue in accordance with

a resolution of the Directors on 4 March 2026. The balance sheet was signed on behalf of the Board

by J Hudson and R Akers.

Ibstock Plc is a public company limited by shares, which is incorporated in the United Kingdom and

registered in England. The registered office is Leicester Road, Ibstock, Leicestershire LE67 6HS and

the company registration number is 09760850.

The principal activities of the Company and its subsidiaries (the ‘Group’) and the nature of the

Group’s operations are set out in the Strategic Report on pages 1 to 54 .

Basis of preparation

The consolidated financial statements of Ibstock Plc for the year ended 31 December 2025 have

been prepared in accordance with UK adopted International Accounting Standards (IAS). They are

prepared on the basis of all IFRS accounting standards and interpretations that are mandatory for

the year ended 31 December 2025 and in accordance with the Companies Act 2006. The

comparative financial information has also been prepared on this basis.

These consolidated financial statements are prepared on a going concern basis, under the historical

cost convention modified by revaluation of certain financial instruments and pension balances. The

consolidated financial statements are presented in Sterling and all values are rounded to the nearest

thousand, except where otherwise indicated.

The material accounting policies are set out below.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Ibstock Plc and its

subsidiaries as at 31 December 2025. The financial statements of subsidiaries are prepared for the

same reporting period as the Parent Company, using consistent accounting policies. All intra-Group

balances, transactions, income and expenses and profit and losses resulting from intra-Group

transactions have been eliminated in full. Subsidiaries are consolidated from the date on which the

Group obtains control and cease to be consolidated from the date on which the Group no longer

retains control. Details of all the subsidiaries of the Group are given in Note 29.

The subsidiaries are all entities over which the Group has control. The Group controls an entity when

the Group is exposed to, or has rights to, variable returns from its involvement with the entity and

has the ability to affect those returns through its power over the entity.

Going concern

Despite the macroeconomic downturn, there are initial positive external market indicators with

inflation continuing to fall and mortgage rates stabilising, and proposed housing and planning

policy changes which could increase both housing construction activity and effective demand for

housing looking forward. The directors do not believe that the going concern basis of preparation

represents a significant judgement.

The Group’s financial planning and forecasting process consists of a budget for the next year

followed by a medium-term projection. The Directors have reviewed and robustly challenged the

assumptions about future trading performance, operational and capital expenditure and debt

requirements within these forecasts including the 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 funding and liquidity resources above are sufficient to accommodate the principal risks

and uncertainties faced by the Group, particularly those relating to economic conditions and

operational disruption. The strategic report sets out in more detail the Group’s approach and risk

management framework.

Group forecasts have been prepared which reflect both actual conditions and estimates of the

future reflecting macroeconomic 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 maturities between November 2028 and November 2033, and a £125 million RCF maturing

in November 2029, with a one-year extension option. At 31 December 2025 the RCF was

£42.0 million drawn.

Covenants under the Group’s RCF and private placement notes require leverage of no more than

3 times net debt to adjusted EBITDA

, and interest cover of no less than 4 times, tested bi-annually

at each reporting date with reference to the previous 12 months. At 31 December 2025 covenant

requirements were met with significant headroom.

The key uncertainty faced by the Group is the industry demand for its products. Accordingly, the

Group has modelled financial scenarios which see reduction in the industry demand for its products

thereby stress testing the Group’s resilience. For each scenario, cash flow and covenant compliance

forecasts have been prepared. In the most severe but plausible scenario industry demand for Clay

products is projected to be around 35% lower than the demand levels experienced in five of the past

ten years (‘benchmarked demand levels’), in the 2026 year (10% below 2025 levels) recovering to

around 25% lower in 2027 (5% above 2025 levels), with management’s base case reflecting a

modest cyclical recovery following the prolonged sector downturn.

In the severe but plausible scenario, the Group has sufficient liquidity and headroom against its

covenants, with covenant headroom expressed as a percentage of annual adjusted EBITDA

being

in excess of 20%.

In addition, the Group has prepared a reverse stress test to evaluate the industry demand reduction

at which it would be likely to breach the debt covenants, before any further mitigating actions are

taken. This test indicates that, at a reduction of 41% in sales volumes versus benchmarked demand

levels, in 2026 and a reduction of 43% in the first half of 2027, the Group would be at risk of breaching

its covenants.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Going concern continued

The Directors consider this to be a highly unlikely scenario, and in the event of an anticipated

covenant breach, the Group would seek to take further steps to mitigate, including the disposal of

valuable land and building assets and additional 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, the Directors are satisfied that the Group has sufficient resources to continue in operation

for a period of not less than 12 months from the date of this report. Accordingly, the consolidated

financial information has been prepared on a going concern basis.

New or amended standards that are effective for the current year

In the current year, the Group has applied the amendment below to IFRS Standards and

Interpretations issued by the International Accounting Standards Board (IASB) that is mandatorily

effective for an accounting period that begins on or after 1 January 2025.

@ Amendments to IAS 21 – Lack of Exchangeability.

The amendment listed above did not have any impact on the amounts recognised in prior periods

and are not expected to significantly affect the current or future periods.

New and revised standards in issue but not yet effective

At the date of authorisation of these financial statements, the Group has not applied the following

new and revised IFRS Standards that have been issued but are not yet effective:

@ Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments;

@ IFRS 18 – Presentation and Disclosure in Financial Statements; and

@ IFRS 19 – Subsidiaries without Public Accountability: Disclosures.

The Directors do not expect that the adoption of the Standards listed above will have a material

impact on the financial statements of the Group in the current or future reporting periods, except

if indicated below.

IFRS 18 Presentation and Disclosures in Financial Statements

IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and

complementing them with new requirements. In addition, some paragraphs from IAS 1 have been

moved to IAS 8 and IFRS 7. Furthermore, the IASB has made minor amendments to IAS 7 and

IAS 33 Earnings per Share.

IFRS 18 introduces new requirements to:

@ present specified categories and defined subtotals in the statement of profit or loss

@ provide disclosures on management-defined performance measures (MPMs) in the notes to the

financial statements

@ improve aggregation and disaggregation.

An entity is required to apply IFRS 18 for annual reporting periods beginning on or after 1 January 2027,

with earlier application permitted. The amendments to IAS 7 and IAS 33, as well as the revised IAS 8

and IFRS 7, become effective when an entity applies IFRS 18. IFRS 18 requires retrospective

application with specific transition provisions.

The Directors anticipate that the application of these amendments will have an impact on the

Group’s consolidated financial statements in future periods.

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the

chief operating decision-makers (CODMs). The CODMs, who are responsible for allocating resources

and assessing performance of the operating segments, have been identified as the Chief Executive

Officer and Chief Financial Officer of the Group.

The CODMs review the key profit measure, Adjusted EBITDA

, as defined in Note 3, and consider the

Group’s reportable segments to be Clay and Concrete.

Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the

currency of the primary economic environment in which the entity operates (‘the functional currency’).

The consolidated financial statements are presented in Sterling (£), which is the Group’s

presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates

prevailing at the dates of the transactions or valuation where items are remeasured. Foreign

exchange gains and losses resulting from the settlement of such transactions and from the

translation at year end exchange rates of monetary assets and liabilities denominated in foreign

currencies are recognised in the income statement, except when deferred in other comprehensive

income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange

gains and losses that relate to borrowings and cash and cash equivalents are presented in the

income statement within net finance costs. All other foreign exchange gains and losses are

presented within the income statement.

Property, plant and equipment

Property, plant and equipment is stated at the cost to the Group less depreciation. The cost of property,

plant and equipment includes directly attributable costs. Costs incurred to gain access to mineral

reserves (typically stripping costs) are capitalised and depreciated over the life of the quarry, which is

based on the estimated tonnes of raw material to be extracted from the reserves. Management

assesses the Group’s assets separating their cost into (i) the local statutory books’ historical cost

and (ii) the associated fair value uplift, which arose on the acquisition of the Group in 2015.

Details of cost and accumulated depreciation are included in Note 13.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Property, plant and equipment continued

Depreciation is provided on the cost of all assets (except assets in the course of construction and

land), so as to write off the cost, less residual value, on a straight line basis over the expected useful

economic life of the assets concerned, as follows:

Asset classification Useful life

Land Not depreciated

Freehold buildings 15 – 60 years

Plant, machinery and equipment 2 – 40 years

Mineral reserves Amortised on a usage basis

Exploration expenditure relates to the initial search for mineral deposits with economic potential

and is not capitalised. Evaluation expenditure relates to a detailed assessment of deposits or other

projects that have been identified as having economic potential and in obtaining permissions to

extract clay. Capitalisation of evaluation expenditure within ‘Mineral reserves’ commences when

there is a high degree of confidence that the Group will determine that a project is commercially

viable, i.e., the project will provide a satisfactory return relative to its perceived risks, and therefore it

is considered probable that future economic benefits will flow to the Group.

Mineral reserves may be declared for an undeveloped project before its commercial viability has

been fully determined. Evaluation costs may continue to be capitalised during the period between

declaration of reserves and approval to extract clay as further work is undertaken in order to refine

the development case to maximise the project’s returns.

The carrying values of property, plant and equipment are reviewed for impairment if events or

changes in circumstances indicate the carrying value may not be recoverable. The carrying values of

capitalised evaluation expenditure are reviewed for impairment by management.

Useful lives and residual values are reviewed at each balance sheet date and revised where

expectations are significantly different from previous estimates. In such cases, the depreciation

charge for current and future periods is adjusted accordingly.

Intangible assets

Separately acquired brands and non-contractual customer relationships are shown at historical cost.

Brands and customer relationships have a finite useful life and are carried at cost less accumulated

amortisation. Amortisation is calculated using the straight line method to allocate the cost of brands

and customer relationships over their estimated useful lives as follows:

Asset classification Useful life

Brands 10 – 50 years

Customer contracts and relationships 10 – 20 years

Licences represent carbon allowances the Group purchased to meet carbon emissions in excess of

the Group’s granted allowances under the UK Emission Trading Scheme (ETS). The carbon allowances

are recognised as intangible assets and classified as non-current assets. The costs to settle the

forecast emissions in the year in excess of granted allowances are recognised across the year.

For implementation costs in a cloud service contract that are distinct from the related software, the

costs are recognised as an expense as incurred (as the service is received) unless it gives rise to a

separate intangible asset. The costs of services provided by the cloud vendor, which are not distinct

from access to the software, are recognised as an expense over the period of access to the software.

Goodwill is initially recognised and measured as the excess of consideration transferred over the fair

value of the net assets acquired in a business combination. Goodwill is not amortised but is reviewed

for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to the

Group’s cash-generating unit (or groups of cash-generating units) expected to benefit from the

synergies of the combination. Cash-generating units to which goodwill has been allocated are

tested for impairment annually, or more frequently when there is an indication that the asset may

be impaired.

If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit,

the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the

unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each

asset in the unit. Any impairment loss recognised for goodwill is not reversed in a subsequent period.

On disposal of a cash-generating unit, the attributable amount of goodwill is included in the

determination of the profit or loss on disposal. There has been no impairment of goodwill in the

current or prior year.

For further details, see Note 12.

Impairment of non-financial assets

Assets that are subject to amortisation or depreciation, such as brands and non-contractual

customer relationships and property, plant and equipment, are reviewed for impairment whenever

events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised immediately within the income statement for the amount by which

the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher

of an asset’s fair value less costs of disposal and value-in-use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are

largely independent cash inflows (cash-generating units). Prior impairments of non-financial assets

(other than goodwill) are reviewed for possible reversal at each reporting date at which point they

are immediately recognised within the income statement.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Impairment of non-financial assets continued

For assets excluding goodwill, an assessment is made at each reporting date whether there is any

indication that previously recognised impairment losses may no longer exist or may have decreased.

If such indication exists, the Group estimates the asset’s or cash-generating unit’s (CGU’s)

recoverable amount. A previously recognised impairment loss is reversed only if there has been a

change in the assumptions used to determine the asset’s recoverable amount since the last

impairment was recognised. The reversal is limited so that the carrying amount of the asset does not

exceed its recoverable amount, nor exceed the carrying amount that would have been determined,

net of depreciation, had no impairment loss been recognised for the asset in prior years. As the

Group has no assets carried at revalued amounts, such reversal is recognised in the consolidated

income statement.

The Group, where appropriate, separately applies the requirements of IAS 36 to land and to

buildings on sites owned considering the individual recoverable values of each and the reliability

in estimating these.

For further details, see Note 17.

Assets held for sale

Non-current assets and disposal groups are classified as held for sale only if available for immediate

sale in their present condition and a sale is highly probable and expected to be completed within

one year from the date of classification. Such assets and disposal groups are measured at the lower

of carrying amount and fair value less the costs to sell. Non-current assets classified as held for sale

(or that form part of a disposal group classified as held for sale) are not depreciated or amortised.

Leases

The Group as lessee

The Group leases various offices, warehouses, factories, equipment, mobile plant and cars. Rental

contracts are typically made for fixed periods of three to twelve years, but may have extension

options, as described below, and contain a range of terms and conditions. The lease agreements do

not impose any covenants, but leased assets may not be used as security for borrowing purposes.

Management also reviews other contracts entered into during the period to assess whether they

may contain embedded leases. Such contracts are, or contain, a lease if it conveys the right to

control the use of a specified asset (e.g. plant, property and equipment) over a period in exchange

for consideration.

Leases are recognised as right-of-use assets and a corresponding liability at the date on which the

leased asset is available for use by the Group. Each lease payment is allocated between the liability

and finance cost.

The finance cost is charged to the income statement over the lease period, so as to produce a

constant periodic rate of interest on the remaining balance of the liability for each period. The

right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a

straight line basis.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease

liabilities include the net present value of the following lease payments:

@ fixed payments (including in-substance fixed payments), less any incentives receivable;

@ variable lease payments that are based on an index or rate;

@ the exercise price of a purchase option, if the lessee is reasonably certain to exercise that option; and

@ payments of penalties for terminating the lease, if the lease term reflects the lessee exercising

that option.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be

determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would

have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic

environment with similar terms and conditions.

Right-of-use assets are measured at cost comprising the following:

@ the amount of the initial measurement of lease liability;

@ any lease payments made at or before the commencement date less any lease incentives received;

@ any initial direct costs; and

@ restoration costs.

Payments associated with short-term leases and leases of low-value assets are recognised on a

straight line basis as an expense within the income statement. Short-term leases are leases with a

term of 12 months or less.

(i) Variable lease payments

Some property leases contain variable lease payment terms that are linked to the extraction of raw

materials. For individual properties, a percentage of the lease payments are on the basis of the

variable payment terms.

Variable lease payments that are dependent upon the level of extraction are recognised within

the income statement in the period in which the extraction which triggers that payment occurs.

The value of variable lease payments and the impact of movements in the Group’s levels of

extraction are insignificant in current and prior periods.

(ii) Extension and termination options

Extension and termination options are included in a small number of property leases across the

Group. The majority of such options are exercisable only by the Group and not by the respective

lessor. In determining the lease term, management considers all facts and circumstances that create

an economic incentive to exercise an extension option or not exercise a termination option.

Extension options (or periods after termination options) are only included in the future cash outflows

if the lease is reasonably certain to be extended (or not terminated). This assessment is reviewed if

a significant event or a significant change in circumstances occurs that affects this assessment and

that is within the control of the lessee.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Leases continued

The Group as lessor

The Group enters into lease agreements as a lessor with respect to some of its surplus properties.

Leases for which the Group is a lessor are classified as either finance or operating leases. Whenever

the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the

contract is classified as a finance lease. All other leases are classified as operating leases.

When the Group is an intermediate lessor, it accounts for the head lease and the sub-lease as two

separate contracts. The sub-lease is classified as a finance or operating lease by reference to the

right-of-use asset arising from the head lease.

Rental income from operating leases is recognised on a straight-line basis over the term of the

relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are

added to the carrying amount of the leased asset and amortised on a straight-line basis over the

lease term.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost includes all costs incurred in

bringing each product to its present location and condition. Raw materials, consumables and goods

for resale are recognised on a weighted average cost basis, while work in progress and finished goods

are held at direct cost plus an appropriate proportion of production overheads. Net realisable value is

the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

The Group records provisions for obsolete and slow-moving inventory on the basis of historical sales

values and volumes, respectively. These inventory provisions are updated regularly to reflect

management’s most recent information.

Investments and other financial assets

Classification

The Group classifies its financial assets in the following measurement categories:

@ those to be measured subsequently at fair value (either through other comprehensive income

(OCI) or through profit or loss); and

@ those to be measured at amortised cost.

The classification depends on the entity’s business model for managing the financial assets and the

contractual terms of the cash flows.

The Group reclassifies debt investments when and only when its business model for managing those

assets changes.

Recognition and derecognition

Purchases and sales of financial assets are recognised on trade date, the date on which the Group

commits to purchase or sell the asset.

Financial assets are derecognised when the rights to receive cash flows from the financial assets

have expired or have been transferred and the Group has transferred substantially all the risks and

rewards of ownership.

On derecognition of a financial asset measured at amortised cost, the difference between the

asset’s carrying amount and the sum of the consideration received and receivable is recognised

within the income statement.

Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of

a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly

attributable to the acquisition of the financial asset.

Forward energy contracts

The Group has a long-standing practice of locking in prices for gas and electricity used in its

production activities and achieves this by committing to take delivery of a certain volume of energy

in future months, which creates a contractual commitment and secures a certain price.

The Group takes delivery of the energy and so the Directors believe it meets the requirements of the

own use scope exemption in IFRS 9 Financial Instruments. As such, these contracts are not held on

the balance sheet at fair value but rather treated as executory contracts and energy purchases are

accounted for in the period in which the gas and electricity is consumed, at the contracted price.

Derivatives and hedging

The Group enters into derivative transactions to manage its exposure to foreign exchange rate risks

on major capital expenditure projects.

Derivatives are recognised initially at fair value on the date the contract is entered into and

subsequently remeasured to their fair value at each reporting date.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with

a negative fair value is recognised as a financial liability. Derivatives are not offset in the financial

statements unless the Group has both the legal right and intention to offset.

A derivative is presented as a non-current asset or a non-current liability if the remaining maturity

of the instrument is more than 12 months and is not expected to be realised or settled within

12 months. Other derivatives are presented as current assets or current liabilities.

The Group designates certain derivatives as hedging instruments in respect of foreign currency risk.

These derivatives are designated and effective as hedging instruments, in which event the timing of

the transfer within the balance sheet or recognition in the income statement depends on the nature

of the hedge relationship.

Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the

inception of the hedge relationship, the Group documents the relationship between the hedging

instrument and the hedged item, along with its risk management objectives and its strategy for

undertaking various hedge transactions. The Group documents whether the hedging instrument is

effective in offsetting the hedged risk, by confirming that:

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Investments and other financial assets continued

Derivatives and hedging continued

@ there is an economic relationship between hedged items and the hedging instrument;

@ the effect of credit risk does not dominate the value changes that result from that economic

relationship; and

@ the planned ratio of hedge: hedge item is the same as the actual ratio of hedge: hedge item.

The effective portion of changes in the fair value of derivatives that are designated as cash flow

hedges is recognised in other comprehensive income and accumulated under the cash flow hedging

reserve. Any gain or loss relating to the ineffective portion of the hedge is recognised immediately

in profit or loss. Amounts previously recognised in other comprehensive income and accumulated

in equity are reclassified to the related capital expenditure project within the balance sheet in the

periods when the underlying hedged item affects the balance sheet.

The Group discontinues hedge accounting should the hedge relationship cease to meet the

qualifying criteria, or when the hedging instrument expires, is sold, terminated or exercised.

Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for

managing the asset and the cash flow characteristics of the asset. The measurement category into

which the Group classifies its debt instruments is amortised cost.

Assets that are held for collection of contractual cash flows where those cash flows represent solely

payments of principal and interest are measured at amortised cost. Interest income from these

financial assets is included in finance income using the effective interest rate method. Any gain or

loss arising on derecognition is recognised directly in the income statement.

Impairment

The Group assesses on a forward-looking basis the expected credit losses associated with its debt

instruments carried at amortised cost and fair value through other comprehensive income. The

impairment methodology applied depends on whether there has been a significant increase in

credit risk. For trade receivables, the Group applies the simplified approach permitted by IFRS 9,

which requires expected lifetime losses to be recognised from initial recognition of the receivables,

see Note 23 for further details.

No significant impairment losses were recorded in the current or prior year. Should they arise,

impairment losses are presented as a separate line item in the Group consolidated income statement.

Trade and other receivables

Trade receivables are amounts due from customers for merchandise sold in the ordinary course of

business. Collection is expected in one year or less and trade receivables are classified as current

assets accordingly. Trade receivables are measured at amortised cost using the effective interest

method, less provision for impairment.

Cash and cash equivalents

In the consolidated balance sheet, cash and cash equivalents reflects cash in hand at the balance

sheet date, deposits held at call with banks, other short-term highly liquid investments with original

maturities of three months or less.

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. Accounts payable are classified as current liabilities where

payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade payables are recognised initially at fair value and subsequently measured at amortised cost

using the effective interest method.

Borrowings

The Group’s borrowings comprise a Revolving Credit Facility (RCF) and private placement loan notes.

Borrowings are recognised initially at fair value, net of directly attributable transaction costs incurred.

All other costs are expensed as incurred. Borrowings are subsequently carried at amortised cost.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer

settlement of the liability for at least 12 months after the balance sheet date.

Finance cost on borrowings is treated as an expense in the income statement, with the exception of

interest costs incurred on the financing of major projects, which are capitalised within property, plant

and equipment.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to

the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee

is deferred until the draw-down occurs.

To the extent there is evidence that it is not probable that some or all of the facility will be drawn

down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of

the facility to which it relates. Fees relating to short-term variations in financing conditions and terms

are recognised in profit or loss in the period in which they are incurred.

An exchange of debt instruments with substantially different terms is accounted for as an

extinguishment of the original financial liability and the recognition of a new financial liability.

Similarly, a substantial modification of the terms of an existing financial liability is accounted for as

an extinguishment of the original financial liability and the recognition of a new financial liability.

Employee benefits

The Group operates various post-employment schemes, including both defined benefit and defined

contribution pension plans.

Pensions

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a

separate entity. The Group has no legal or constructive obligations to pay further contributions if the

fund does not hold sufficient assets to pay all employees the benefits relating to employee service in

the current and prior periods.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Employee benefits continued

Pensions continued

For defined contribution plans, the Group pays contributions to publicly or privately administered

pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further

payment obligations once the contributions have been paid. The Group recognises contributions

payable to defined contribution plans in exchange for employee services in employee benefit expense.

A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined

benefit plans define an amount of pension benefit that an employee will receive on retirement,

usually dependent on one or more factors such as age, years of service and compensation.

The amount recognised in the balance sheet in respect of defined benefit pension plans is the fair

value of plan assets less the present value of the defined benefit obligation at the end of the

reporting period. The defined benefit obligation is calculated annually by independent actuaries

using the projected unit credit method. The present value of the defined benefit obligation is

determined by discounting the estimated future cash outflows using interest rates of high-quality

corporate bonds that are denominated in the currency in which the benefits will be paid, and that

have terms to maturity approximating to the terms of the related pension obligation.

Where defined benefit schemes have a surplus, the surplus is recognised if future economic benefits

are available to the entity in the form of a reduction in the future contributions or a right to refund.

Past-service costs are recognised immediately in the income statement. The net interest cost is

calculated by applying the discount rate to the net balance of the defined benefit obligation and the

fair value of plan assets, taking account of any changes in the defined benefit asset/liability during

the period as a result of contributions and benefit payments. This cost is included in interest expense

in the income statement.

When the benefits of a defined benefit plan are changed or when the plan is curtailed, the change

in the present value of the defined benefit obligation arising that relates to the plan amendment

or curtailment is recognised immediately within the income statement on its occurrence. Before

determining the past service cost (including curtailment gains or losses) or a gain or loss on

settlement, the net defined benefit obligation (asset) is remeasured using the current fair value of

plan assets and current actuarial assumptions (including current market interest rates and other

current market prices) reflecting the benefits offered under the plan before the plan amendment,

curtailment or settlement.

Costs of managing the plan assets, remeasurement gains and losses arising from experience

adjustments and changes in actuarial assumptions are charged or credited in other comprehensive

income in the period in which they arise.

Provisions

Provisions are recognised when: the Group has a present legal or constructive obligation as a result

of past events; it is probable that an outflow of resources will be required to settle the obligation;

and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the risk-assessed expenditures expected to be

required to settle the obligation using a pre-tax risk-free discount rate to reflect current market

assessments of the time value of money. The increase in the provision due to passage of time is

recognised as interest expense.

The restoration provision is to fund future obligations at a number of sites that the Group is

associated with and where the Group has any constructive obligation to restore once it has fully

utilised the site. Provisions for dilapidations are recognised on a lease-by-lease basis and are based

on the Group’s discounted best estimate of the likely committed cash outflows. The restructuring

provision is to fund the estimated restructuring costs and only arises when all the criteria in IAS 37

Provisions are met by the Group.

Revenue

Revenue represents the fair value of consideration receivable for goods supplied by the Group,

exclusive of local sales tax and trade discounts and after eliminating sales within the Group. All of

revenue is attributable to the principal activities of the Group being the manufacture and sale of

concrete products, clay facing bricks and associated special shaped and fabricated clay products.

Revenue is recognised when the Group’s performance obligation is satisfied, which is usually when

the promised goods and services are transferred to the customer. In a bill and hold arrangement,

revenue is recognised when a customer has obtained control of a product, which arises when all of

the following criteria are met: (a) the reason for the arrangement is substantive, (b) the product has

been identified separately as belonging to the customer, (c) the product is ready for delivery in

accordance with the terms of the arrangement, and (d) the Company does not have the ability to

use the product or sell the product to another customer.

Customer rebates

Provisions for rebates to customers are based upon the terms of individual contracts, with rebates

granted based upon a tiered structure dependent upon an individual customer’s purchases during

the rebate period. Customer rebates are recorded in the same period as the related sales as a

deduction from revenue and the vast majority are coterminous with the Group’s financial year end.

For those individual contracts that are non-coterminous, the Group estimates the provision for this

variable consideration based on the most likely outcome amount determined by the terms of each

agreement at the time the revenue is recognised. At the financial year end, due to settlement of

rebates with customers, the level of remaining estimation is limited and the risk of a significant

reversal of recognised revenue is negligible.

Other income

Other income is attributable to rental income from properties, landfill and gas activity. Other

expenses represent associated expenses. This is not deemed to be a principal activity of the Group.

Rental income received under operating leases is recognised on a straight line basis over the term

of the relevant lease. Assets leased by the Group to third parties are depreciated in line with the

Group’s normal depreciation policy.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Research and development

Research and development expenditure is written off as incurred, except that development

expenditure incurred on an individual project is capitalised when relevant criteria under IAS 38 have

been met. Any expenditure carried forward is amortised in line with the expected future sales from

the related project.

Exceptional items

The Group presents as exceptional on the face of the income statement those items of income and

expense which, because of the materiality, nature and/or expected infrequency of the events giving

rise to them, merit separate presentation to allow Shareholders to further understand elements of

financial performance in the period, so as to facilitate comparison with future years and to assess

trends in financial performance. See Note 5 for further details of exceptional items

recognised in

the current period.

The Directors believe that the use of alternative performance measures (APMs), such as exceptional

items

, provide useful information for Shareholders. The Group uses APMs to aid comparability of its

performance and position between periods. The APMs used represent measures used by management

and Board to monitor performance and plan. Additionally, certain APMs are used by the Group in

setting Director and management remuneration. Detailed descriptions of APMs used throughout

these financial statements are included within Note 3.

APMs used by the Group are generally not defined under IFRS and may not be comparable with

similarly titled measures reported by other companies.

It is not believed that adjusted measures are a substitute for, or superior to, statutory measurements.

Government grants

Government grants are recognised within the income statement on a systematic basis over the

periods in which the Group recognises as expenses the related costs for which the grants are intended

to compensate. Grants are presented as part of the income statement and are deducted in reporting

the related expense.

Government grants that are receivable as compensation for expenses or losses already incurred or

for the purpose of giving immediate financial support to the Group with no future related costs are

recognised within the income statement in the period in which they become receivable. Government

grants are not recognised until there is reasonable assurance that the Group will comply with the

conditions attached to them and that the grants will be received.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the

income statement except for tax relating to items recognised in other comprehensive income or

directly in equity.

Current tax is the expected tax payable or recoverable on the taxable income or loss for the year,

using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment

to tax payable in respect of previous years.

During the ordinary course of business, there are transactions and calculations for which the

ultimate tax determination may be uncertain. The calculation of the tax charge therefore

necessarily involves a degree of estimation and judgement. The tax liabilities are based on

estimates of whether additional taxes will be due and tax assets are recognised on the basis of

probable future recoverability. This requires management to exercise judgement based on its

interpretation of tax laws and the likelihood of settlement of tax liabilities or recoverability of tax

assets. To the extent that the final outcome differs from the estimates made, tax adjustments may

be required which could have an impact on the tax charge and profit for the year in which such a

determination is made.

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities

and their carrying amounts included in the financial statements. However, deferred tax liabilities are

not recognised if they arise from the initial recognition of goodwill; deferred tax is not accounted for

if it arises from initial recognition of an asset or liability in a transaction other than a business

combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

The amount of deferred tax is calculated using tax rates that have been enacted or substantively

enacted at the balance sheet date and are expected to apply when the related deferred tax asset

is realised or deferred tax liability is settled. Deferred tax assets and liabilities are not subject

to discounting.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will

be available, against which the temporary difference can be utilised.

Deferred tax liabilities are provided on taxable temporary differences arising from investments in

subsidiaries except for deferred tax liabilities where the timing of the reversal of the temporary

difference is controlled by the Group and it is probable that the temporary difference will not reverse

in the foreseeable future.

Deferred tax assets are recognised on deductible temporary differences arising from investments in

subsidiaries only to the extent that it is probable the temporary difference will reverse in the future

and there is sufficient taxable profit available against which the temporary difference can be

utilised. Deferred tax assets and liabilities are offset where there is a legally enforceable right to

offset current tax assets against current tax liabilities where these have been levied by the same tax

authority on either the same taxable entity or different taxable entities within the Group where

there is an intention to settle the balances on a net basis.

Dividend distribution

Dividend distributions to Ibstock Plc Shareholders are recognised in the Group’s financial statements

in the period in which the dividends are approved in a general meeting, or when paid in the case of

an interim dividend.

Share-based payments

The Group operates a number of equity-settled share based compensation plans, under which the

entity receives services from employees as consideration for equity instruments (for example options

or shares) of Ibstock Plc. The fair value of the employee services received in exchange for the grant

of the equity instruments is recognised as an expense. The total amount to be expensed is

determined by reference to the fair value of the instruments granted:

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financial statements.

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Notes to the consolidated financial statements continued

1. Summary of significant accounting policies continued

Share-based payments continued

@ including any market performance conditions (for example, the Group’s share price);

@ excluding the impact of any service and non-market performance vesting conditions (for example,

profitability, sales growth targets and remaining an employee of the entity over a specified time

period); and

@ including the impact of any non-vesting conditions (for example, the requirement for employees

to save or hold shares for a specific period of time).

At the end of each reporting period, the Group revises its estimates of the number of instruments

that are expected to vest based on the non-market vesting conditions and service conditions. It

recognises the impact of the revision to original estimates, if any, in the income statement, with a

corresponding adjustment to equity. In addition, in some circumstances employees may provide

services in advance of the grant date and therefore the grant date fair value is estimated for the

purposes of recognising the expense during the year between service commencement period and

grant date. For the equity-settled share based payment transactions, the fair value of the share

instruments granted is derived from established option pricing models. Further details on share

based payments are set out in Note 26.

2. Critical accounting judgements and key sources of estimation uncertainty

In applying the Group’s accounting policies, as described in Note 1, the Directors are required to

make judgements (other than those involving estimations) that have a significant impact on the

amounts recognised and to make estimates and assumptions that affect the reported amounts

of assets, liabilities, income and expenses. Due to the inherent uncertainty in making these critical

judgements and estimates, actual outcomes could be different.

Critical judgements in applying the Group’s accounting policies

The following critical judgement, that the Directors made in the process of applying the Group’s

accounting policies, has the most significant effect on the amounts recorded in the financial statements.

Exceptional items

are disclosed separately in the financial statements where the Directors believe it

is necessary to do so to provide further understanding of the financial performance of the Group.

The Group presents as exceptional items

in Note 5 those items of income and expense which,

because of the materiality, nature and/or expected infrequency of the events giving rise to them,

merit separate presentation to allow Shareholders to understand elements of financial performance

in the financial period, so as to facilitate comparison with future years and further assess underlying

trends in financial performance. Judgement is required in relation to significant material transactions

as to whether they are exceptional in nature.

Further details on exceptional items

are given within Note 5.

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financial statements.

Key sources of estimation uncertainty

Estimates and underlying assumptions are reviewed by management on an ongoing basis, with

revisions recognised in the period in which the estimates are revised, and in any future period

affected. The areas that may have a significant risk of resulting in a material adjustment to the

carrying amounts of assets and liabilities within the next financial year are as follows:

Defined benefit pension schemes – valuation of liabilities

For defined benefit schemes, management is required to make annual estimates and assumptions

about future changes in discount rates, inflation, the rate of increase in pensions in payment and life

expectancy. The buy-in agreement in place assumed the insured asset and the corresponding

liabilities are broadly matched, but the assumptions used would still affect the pension liabilities at

the year end.

In making these estimates and assumptions, management considers advice provided by external

advisers, such as actuaries. These assumptions are subject to periodic review.

Note 21 describes the assumptions used together with an analysis of the sensitivity of the defined

benefit scheme liability (£316.9 million at 31 December 2025) to changes in key assumptions.

Impairment of property, plant and equipment

Assessing the Group’s property, plant and equipment assets for impairment requires estimation of

the present value of future cash flows. The calculations require the Group to estimate the future cash

flows expected to arise from cash-generating units (CGUs). The key assumption in this regard relates

to long-term industry demand for the Group’s products.

Note 17 describes the other assumptions used together with an analysis of the sensitivity of the

impairment assessment to changes in the key assumption.

3. Alternative performance measures

Alternative Performance Measures (APMs) are disclosed within the consolidated financial

statements where management believes it is necessary to do so 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 of internal capital and resources. Certain APMs are used in the remuneration of

management and Executive Directors, as set out in the Directors’ Remuneration Report on pages 91

to 110.

APMs serve as supplementary information for users of the financial statements and it is not intended

that they are a substitute for, or superior to, statutory measures. None of the APMs are outlined within

IFRS and they may not be comparable with similarly titled APMs used by other companies.

Within the notes to the consolidated financial statements, all APMs are identified with a superscript.

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Notes to the consolidated financial statements continued

3. Alternative performance measures continued

Exceptional items

The Group presents as exceptional those items of income and expense which, because of their

materiality, nature and/or expected infrequency of the events giving rise to them, merit separate

presentation to allow users of the financial statements to understand further elements of financial

performance in the year. This facilitates comparison with future periods and to assess 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 and the incremental depreciation and amortisation arising from historic fair value

uplifts. Adjusted EBITDA is Adjusted EBIT adjusted for depreciation and amortisation pre fair value

uplift and Adjusted EBITDA margin is Adjusted EBITDA shown as a proportion of revenue.

The Directors regularly use Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA margin as key

performance measures in assessing the Group’s profitability. The measures are considered useful to

users of the financial statements as they represent common APMs used by investors in assessing a

company’s operating performance, when comparing its performance across periods as well as being

used in the determination of Directors’ variable remuneration.

A full reconciliation of Adjusted EBIT and Adjusted EBITDA is included at the foot of the Group’s

Consolidated income statement within the consolidated financial statements. Adjusted EBITDA

margin is included within Note 4.

Adjusted EPS

Adjusted EPS is the basic earnings per share adjusted for exceptional items, fair value adjustments

being the amortisation and depreciation on fair value uplifted assets and non-cash interest, net of

associated taxation on the adjusted items.

The Directors have presented Adjusted EPS as they believe the APM represents useful information to

the user of the financial statements in assessing the performance of the Group, when comparing its

performance across periods, as well as being used within the determination of Directors’ variable

remuneration. Additionally, the APM is considered by the Board when determining the proposed

level of ordinary dividend.

A full reconciliation is provided in Note 11.

Net debt and Net debt to Adjusted EBITDA (“leverage”) ratio

Net debt is 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 in order to align

with the Group’s banking facility covenant definition.

The Net debt to Adjusted EBITDA ratio definition removes the operating lease expense benefit

generated from IFRS 16 compared to IAS 17 within Adjusted EBITDA.

The Directors disclose these APMs to provide information as a useful measure for assessing the

Group’s overall level of financial indebtedness and when comparing its performance and position

across periods.

Net debt is shown at the foot of the Group consolidated cash flow statement on page 128.

A full reconciliation of the net debt to Adjusted EBITDA ratio (also referred to as ‘leverage’) is set out below:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Net debt	(120,043)	(121,560)
Adjusted EBITDA	71,044	79,350
Impact of IFRS 16 (Note 27)	(12,045)	(12,134)
Adjusted EBITDA prior to IFRS 16	58,999	67,216
Ratio of net debt to Adjusted EBITDA (prior to IFRS 16)	2.0	1.8

Adjusted return on capital employed

Adjusted return on capital employed (Adjusted ROCE) is defined as earnings before interest and

taxation adjusted for exceptional items as a proportion of the average capital employed (defined as

net debt plus equity excluding the pension surplus). The average is calculated using the period end

balance and corresponding preceding reported period end balance (year end or interim).

The Directors disclose the Adjusted ROCE APM in order to provide users of the financial statements with

an indication of the relative efficiency of capital use by the Group over the period, assessing performance

between periods as well as being used within the determination of executives’ variable remuneration.

The calculation of Adjusted ROCE is set out below:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Adjusted EBITDA	71,044	79,350
Less: depreciation	(35,210)	(33,619)
Less: amortisation	(6,322)	(6,938)
Adjusted earnings before interest and taxation	29,512	38,793
Average net debt	132,275	129,699
Average equity	386,673	394,836
Average pension	(6,483)	(8,305)
Average capital employed	512,465	516,230
Adjusted return on capital employed	5.8%	7.5%

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Notes to the consolidated financial statements continued

3. Alternative performance measures continued

Adjusted return on capital employed continued

Average capital employed figures comprise:

	31 December	30 June	31 December	30 June
	2025	2025	2024	2024
	£’000	£’000	£’000	£’000
Net debt	120,043	144,506	121,560	137,838
Equity	382,460	390,886	395,263	394,409
Less: pension assets	(5,984)	(6,982)	(7,839)	(8,771)
Capital employed	496,519	528,410	508,984	523,476

Adjusted effective tax rate (ETR)

The Group presents an adjusted effective tax rate (Adjusted ETR) within its Financial Review. This is

disclosed in order to provide users of the financial statements with a view of the rate of taxation

borne by the Group adjusted for exceptional items, fair value adjustments being the amortisation

and depreciation on fair value uplifted assets, non-cash interest and changes in taxation rates on

deferred taxation. A reconciliation of the Adjusted ETR to the statutory UK rate of taxation is

included in Note 10.

Cash flow related APMs

The Group presents an adjusted cash flow statement within its Financial Review on page 32. This is

disclosed in order to provide users of the financial statements with a view of the Group’s operating

cash generation before the impact of cash flows associated with exceptional items (as set out in

Note 5) and stated after interest, lease payments 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 in the period, to facilitate comparison with comparative periods and to assess trends

in financial performance. This table contains 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

the cash inflow associated with exceptional items arising in the year of £4.2 million (2024: cash

outflow of £3.1 million).

Adjusted operating cash flow

Adjusted operating cash flows are the cash flows arising from operating activities adjusted to

exclude cash outflow relating to exceptional items of £5.1 million (2024: cash outflows of

£11.2 million) but stated after cash flows associated with interest income, proceeds from the sale

of property, plant and equipment and lease payments reclassified from investing or financing

activities totalling cash inflow of £9.7 million (2024: cash outflow of £9.0 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 its cash management during the 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 the payment of distributions to Shareholders, for use within M&A activity

and other investing and financing activities.

Reconciliation of statutory cash flow statement to adjusted cash flow statement

	Statutory	Exceptional	Reclassification	Adjusted
Year ended 31 December 2025	£’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)

	Statutory	Exceptional	Reclassification	Adjusted
Year ended 31 December 2024	£’000	£’000	£’000	£’000
EBITDA	67,630	11,720	–	79,350
Change in working capital	(7,627)	3,103	–	(4,524)
Impairment charges	3,832	(3,832)	–	–
Net interest	(8,751)	–	139	(8,612)
Tax	(500)	–	–	(500)
Post-employment benefits	959	–	(959)	–
Other	(1,644)	212	(8,142)	(9,574)
Operating cash flow	53,899	11,203	(8,962)	56,140
Cash conversion				71%
Total capex	(45,235)	–	–	(45,235)
Free cash flow	8,664	11,203	(8,962)	10,905

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Notes to the consolidated financial statements continued

4. Segment reporting

The Directors consider the Group’s reportable segments to be Clay and Concrete.

The key Group performance measure is Adjusted EBITDA

, as detailed below, which is defined in

Note 3. The tables below present revenue and Adjusted EBITDA

and profit before taxation for the

Group’s segments.

Included within the ‘Unallocated and elimination’ columns in the tables below are costs including

share-based payments and Group employment costs. Unallocated assets and liabilities are pensions,

taxation and certain centrally held provisions. Eliminations represent the removal of inter-company

balances. Transactions between segments are carried out at arm’s length. There is no material

inter-segmental revenue, and no aggregation of segments has been applied.

For both years 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 Clay segment.

			Year ended 31 December 2025
			Unallocated
	Clay	Concrete	and elimination	Total
	£’000	£’000	£’000	£’000
Product type:
Bricks and masonry	250,827	17, 25 8	–	268,085
Roofing	–	18,662	–	18,662
Fencing and landscaping	–	24,824	–	24,824
Flooring and lintels	–	40,969	–	40,969
Facades	9,170	–	–	9,170
Rail and infrastructure	–	9,762	–	9,762
Other	–	632	–	632
Total revenue	259,997	112,107	–	372,104
Adjusted EBITDA 1	68,062	9,289	(6,307)	71,044
Adjusted EBITDA margin 1	26.2%	8.3%		19.1%
Exceptional items 1 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 before tax	16,821	(2,408)	(13,517)	896
Taxation				2 ,178
Profit for the year				3,074
Consolidated total assets	636,724	95,308	12,716	744,748

£2.4 million of inventory relating to bill and hold transactions remained on the Clay division’s

premises and £0.2 million on the Concrete division’s premises.

In 2025, the Group disposed of its Roofing business in the Concrete segment, as it does not

represent a major line of business for the Group and also the disposal does not impact the

geographical operations for the Group. It has not been classified as a discontinued operation.

The unallocated segment balance includes the fair value of the Group’s share-based payments and

associated taxes (£0.5 million), plc Board and other plc employment costs (£6.0 million), pension

costs (£1.2 million) and legal/administrative expenses (£3.2 million) These costs have been offset by

research and development taxation credits (£4.6 million). During the current period, two customers

accounted for greater than 10% of Group revenues with £95.0 million of sales across the Clay and

Concrete divisions.

The Group defined benefit pension scheme surplus was an unallocated asset and amounted to

£6.0 million.

Year ended 31 December 2025

			Unallocated
	Clay	Concrete	and elimination	Total
	£’000	£’000	£’000	£’000
Consolidated total liabilities	(170,731)	(41,424)	(150,133)	(362,288)
Non-current assets
Consolidated total intangible assets	48,772	17,675	–	66,447
Property, plant and equipment	425,717	29,430	–	455,147
Right-of-use assets	15,929	6,980	383	23,292
Total non-current assets	490,418	54,085	383	544,886
Total non-current asset additions	48,915	4,991	–	53,906
Included within revenue for the year ended 31 December 2025 were £2.5 million of bill and hold
transactions in the Clay division and £0.1 million in Concrete division. At 31 December 2025,

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financial statements.

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Notes to the consolidated financial statements continued

4. Segment reporting continued

			Year ended 31 December 2024
			Unallocated and
	Clay	Concrete	elimination	Total
	£’000	£’000	£’000	£’000
Product type:
Bricks and masonry	238,932	15,874	–	254,806
Roofing	–	18,346	–	18,346
Fencing and landscaping	–	24,168	–	24,168
Flooring and lintels	–	45,762	–	45,762
Facades	9,832	–	–	9,832
Rail and infrastructure	–	12,562	–	12,562
Other	–	731	–	731
Total revenue	248,764	117,443	–	366,207
Adjusted EBITDA 1	72,287	14,646	(7,583)	79,350
Adjusted EBITDA margin 1	2 9.1%	12.5%		21.7%
Exceptional items 1 impacting
operating profit (see Note 5)	(11,336)	(384)	–	(11,720)
Depreciation and amortisation pre
fair value uplift	(24,188)	(5,446)	(144)	(29,778)
Incremental depreciation and amortisation following fair value uplift	(5,926)	(4,853)	–	(10,779)
Net finance costs	(1,303)	(509)	(4,581)	(6,393)
Profit before tax	29,534	3,454	(12,308)	20,680
Taxation				(5,588)
Profit for the year				15,092
Consolidated total assets	611,544	127,371	13,190	752,105
Consolidated total liabilities	(168,917)	(48,023)	(139,902)	(356,842)
Non-current assets
Consolidated total intangible assets	52,649	21,301	–	73,950
Property, plant and equipment	411,111	51,393	–	462,504
Right-of-use assets	19,300	8,541	522	28,363
Total non-current assets	483,060	81,235	522	564 ,817
Total non-current asset additions	49,381	4,050	–	53,431

Included within revenue for the year ended 31 December 2024 were £0.1 million of bill and hold

transactions in the Concrete division. At 31 December 2024, £0.1 million of inventory relating to

these bill and hold transactions remained on the Concrete division’s premises. Additionally,

£0.1 million of inventory related to bill and hold sales in previous years remained on the Concrete

division’s premises and £0.4 million on the Clay division’s premises.

The unallocated segment balance includes the fair value of the Group’s share based payments and

associated taxes (£1.5 million), plc Board and other plc employment costs (£5.2 million), pension

costs (£1.0 million) and legal/administrative expenses (£3.6 million). These costs have been offset

by research and development taxation credits (£2.6 million) and segmental recharges (£1.1 million).

During the current period, one customer accounted for greater than 10% of Group revenues with

£55.7 million of sales across the Clay and Concrete divisions.

The Group defined benefit pension scheme surplus was an unallocated asset and amounted to

£7.8 million.

5. Exceptional items

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Exceptional cost of sale
Impairment charge – Property plant and equipment	(6,141)	(1,126)
Impairment charge – Right-of-use assets	(195)	(2,706)
Total impairment charge (Note 17)	(6,336)	(3,832)
Write-off of inventory (Note 14)	(2,408)	–
Redundancy costs	(1,904)	(581)
Other costs associated with site closure	(1,135)	(5,358)
Total exceptional cost of sales	(11,783)	(9,771)
Exceptional administrative expenses:
Redundancy costs	(2,239)	(992)
Other costs associated with site closure	(3,699)	(957)
Total exceptional administrative expenses	(5,938)	(1,949)
Exceptional net loss on disposal of business and fixed assets	(1,757)	–
Exceptional items 1 impacting operating profit	(19,478)	(11,720)
Total exceptional items 1	(19,478)	(11,720)

In the second half of 2025, the Group announced a restructuring programme in response to

weaker-than-expected market volumes and adverse pricing dynamics, together with revised industry

forecasts signalling a prolonged downturn in construction and RMI activity.

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financial statements.

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Notes to the consolidated financial statements continued

5. Exceptional items

continued

Unlike the 2023 enterprise-wide restructuring programme, which responded to broad-based

softening in market demand, and the 2024 restructuring focused specifically on the Glass Reinforced

Concrete (GRC) business, the 2025 programme is targeted at rationalising the organisational cost

base, streamlining operational overheads, and optimising the Group’s manufacturing footprint to

more appropriately align capacity with projected demand levels.

Because the total financial impact of each coordinated programme or activity exceeded the Group’s

quantitative threshold for exceptional items, and due to their non recurring nature, the associated

financial impact has been presented as an exceptional item.

During the 2025 year, the total exceptional charge arising from the restructuring programmes

initiated in the prior periods was £4.7 million (related cash paid in the year: £4.2 million), while the

total charge arising from the enterprise restructuring programme initiated in 2025 was £13.1 million

(related cash paid in the year £0.9 million).

2025

Included within the current year are the following exceptional items

Exceptional cost of sales

Impairment charges arising in the current year relate to the impairment of non-current assets as set

out in Note 17. Due to the materiality and non-recurring nature, these costs have been categorised

as exceptional.

Redundancy costs relate to the severance for employees engaged in production activities following

the Group’s announced restructuring activities. These costs have been categorised as exceptional

due to their materiality, and unusual and non-recurring nature of the events giving rise to the costs.

Write-off of inventory relate to write-off of non-best soft-mud brick products identified through the

production-footprint rationalisation undertaken as part of the 2025 restructuring, and write-off of certain

inventories related to sites that will be closed permanently and temporarily, as the net realisable value is £nil.

Other costs associated with site closure relate to other costs incurred as a result of the Group’s

restructuring decisions during the current and prior year. These incremental costs include closed site

security and decommissioning activities.

Exceptional administration expenses

Exceptional redundancy costs arising in the current period relate to costs of redundancy of employees

within the Group’s selling, general and administrative (“SG&A”) functions associated with the Group’s

restructuring announced in the second half of 2025.

Other costs associated with site closure relate to other SG&A costs directly attributable to the Group’s

restructuring decision in 2025 and cessation of the GRC business announced in October 2024.

The costs have been treated as exceptional due to their materiality, and the unusual and

non-recurring nature of the event giving rise to the costs.

Exceptional net loss on disposal of business and fixed assets

In 2025, the Group disposed of its Roofing business within the Concrete segment, resulting in a total

loss of £6.3 million. This loss was partially offset by a gain of £4.5 million from the sale and

leaseback of the Bedford site, also within the Concrete segment. The current operations on the

Bedford site will not change in the foreseeable future.

Given their material financial impact and non-recurring nature, the net loss arising from these asset

disposals has been presented as an exceptional item.

During the year, the Group also realised proceeds from the disposal of several surplus land assets.

None of the individual transactions exceeded the Group’s quantitative threshold for exceptional

items, therefore, the aggregate profit on disposal of £2.0 million has been presented within

underlying profit on sale of business and fixed assets.

2024

Included within the year were the following exceptional items

Exceptional cost of sales

Impairment charges arising in the current year relate to the impairment of non-current assets and

working capital items, as set out in Note 17. Due to the materiality and non-recurring nature, these

costs had been categorised as exceptional.

Redundancy costs related to the severance for employees engaged in production activities following

the Group’s announced restructuring activities. These costs had been categorised as exceptional

due to their materiality, and unusual and non-recurring nature of the events giving rise to the costs.

Costs associated with the closure of sites related to other costs incurred as a result of the Group’s

restructuring decisions in 2024. These incremental costs include closed site security and

decommissioning activities.

Exceptional administration expenses

Exceptional redundancy costs arising in the current period relate to costs of redundancy of

employees within the Group’s selling, general and administrative (“SG&A”) functions following the

Group’s restructuring announced in October 2023 and the GRC closure announced in October 2024.

Other costs associated with closure of site relate to other SG&A costs directly attributable to the

Group’s cessation of the GRC business announced in October 2024.

The costs had been treated as exceptional due to their materiality, and the unusual and non-recurring

nature of the event giving rise to the costs.

Cash flow on exceptional items

In relation to the exceptional disposal of business and fixed assets, total cash proceeds of

£31.2 million were received in 2025.

Operating exceptional cash cost of £7.4 million (2024: £8.1 million) associated with the Group’s 2025

restructuring programme, decommissioning activities and other costs associated with previously

closed sites as well as costs directly arising from our decision to close the GRC business. Total related

cash outflow of £5.1 million in relation to operating exceptional items in 2025 (2024: £11.2 million)

comprised £3.9 million relating to in-year exceptional charges (2024: £6.8 million) and the settlement

of provisions within the opening balance sheet totalling £1.2 million (2024: £4.4 million). £4.5 million

cash related to the exceptional cash charges is expected to be paid in the next financial year.

Tax on exceptional items

In the current year, impairment charges arising on non-current assets are not tax deductible but give

rise to a deferred tax credit in the period. The redundancy and site closure costs are treated as tax

deductible in the period. The total tax credit on exceptional items is £7.5 million (2024: £2.9 million).

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Notes to the consolidated financial statements continued

6. Operating profit

Operating profit includes the effect of crediting/(charging):

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Changes in inventories of finished goods and work in progress	22,573	2,605
Raw material and consumables used	(68,649)	(63,368)
Employee benefit expense (Note 7)	(86,363)	(74,829)
Depreciation – Property, plant and equipment (Note 13)	(26,213)	(23,717)
Depreciation – Right-of-use assets (Note 27)	(8,997)	(9,778)
Amortisation (Note 12)	(6,322)	(7,062)
Exceptional cost of sales (Note 5)	(9,375)	(9,771)
Exceptional write-off of inventory	(2,408)	–
Research and development costs	(14,706)	(13,312)
Other production costs	(75,661)	(62,418)
Total cost of sales	(276,121)	(261,650)
Distribution costs	(36,389)	(34,139)
Other employee benefit expenses (Note 7)	(33,289)	(31,442)
Profit on disposal of property, plant and equipment (Note 13)	1,935	261
Advertising costs	(994)	(1,141)
Operating lease income	122	105
Exceptional administrative expenses (Note 5)	(5,938)	(1,949)
Exceptional net loss on disposal of business and fixed assets
(Note5)	(1,757)	–

Auditor’s remuneration

During the year the Group obtained the following services from the Company’s auditor.

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Fees payable to the Company’s auditor and its associates for the audit of Parent Company and consolidated financial
statements	377	374
Fees payable to Company’s auditor and its associates for other services to the Group:
– Audit of the Company’s subsidiaries	682	676
Total audit fees	1,059	1,050
– Audit related assurance services	84	84
Total non-audit fees	84	84

7. Employees and Directors

Employee benefit expenses for the Group during the period:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Wages and salaries – gross	100,507	91,352
Social security costs	11,677	8,014
Pensions costs – defined benefit plans (Note 21)	1,247	959
Pensions costs – defined contribution plans (Note 21)	5,737	4,693
Share based payments (Note 26)	484	1,253
	119,652	106,271

Average monthly number of people (including Executive Directors) employed:

	Year ended	Year ended
	31 December	31 December
	2025	2024
Sales staff	193	187
Administrative staff	294	170
Production staff	1,519	1,492
	2,006	1,849

Key management compensation:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Short-term employee benefits	5,298	3,674
Post-employment benefits	112	248
Termination benefits	–	132
Share-based payment	243	617
	5,653	4,671

Key management personnel has been defined as the Board of Ibstock Plc, together with the Group’s

Executive Team (ET). Members of the ET are set out on pages 58 to 59 of the Annual Report and

Accounts 2025. Details of remuneration for Ibstock Plc Directors, including the highest paid director,

are presented in the Remuneration Report on pages 91 to 110. The aggregate remuneration of the

Directors for the purposes of the financial statements is £1.9 million (year ended 31 December 2024:

£2.7 million).

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Notes to the consolidated financial statements continued

8. Finance costs

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Interest costs:
Interest payable on Revolving Credit Facility	(5,648)	(4,231)
Interest payable on Private Placement	(2,220)	(2,226)
Total interest payable on bank borrowings	(7, 86 8)	(6,457)
Capitalised interest	860	828
Other interest payable	(310)	(164)
Interest expense on financial liabilities at amortised cost	(7,318)	(5,793)
Interest on lease liabilities (Note 27)	(2,048)	(2,494)
Net unwinding of discount on provisions/change in discount rate
(Note 20)	(445)	–
Other interest payable	(2,493)	(2,494)
Total finance costs	(9,811)	(8,287)

Individual tranches totalling £84.0 million (2024: £87.0 million) of Revolving Credit Facility (RCF) were

drawn, with £73.0 million (2024: £81.0 million) subsequently repaid. Interest expense comprised

£4.7 million (2024: £3.3 million) interest on funds drawn down, £0.3 million (2024: £0.4 million) of

facility commitment fees, £0.1 million (2024: £0.1 million) of other arrangement costs and £0.5 million

(2024: £0.4 million) of deal fee amortisation.

£0.9 million (2024: £0.8 million) of borrowing costs are directly attributable to the construction or

production of qualifying assets, and therefore, have been capitalised in the relevant assets. The

average capitalisation rate was 4.00% (2024: 3.66%).

9. Finance income

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Interest income:
Net interest income arising on the UK pension scheme (Note 21)	394	423
Net unwinding of discount on provisions/change in discount rate
(Note 20)	–	1,332
Other interest receivable	279	139
Total finance income	673	1,894

10. Taxation

Analysis of income tax charge

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Current tax on profit for the year	–	1,306
Adjustments in respect of prior period	749	1,696
Total current tax charge	749	3,002
Deferred tax on profit for the year	(1,787)	4,831
Adjustments in respect of prior period	(1,140)	(2,245)
Total deferred tax (credit)/charge	(2,927)	2,586
Total income tax (credit)/charge	(2,178)	5,588

Income tax recognised within the consolidated statement of other comprehensive income

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Tax adjustments arising on the UK pension scheme assets and liabilities:
Deferred tax credit	(324)	(437)
Tax adjustments arising on gains and losses relating to cash flow
hedges:
Deferred tax charge/(credit)	20	(14)

Income tax recognised within the consolidated statement of changes in equity

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Current tax credit on share-based payments	(45)	(18)
Deferred tax credit on share-based payments	(13)	(124)

The tax expense for the period differs from the applicable standard rate of corporation tax in the UK

of 25% for the year ended 31 December 2025 (2024: 25%). The differences are explained below:

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Notes to the consolidated financial statements continued

10. Taxation continued

Income tax recognised within the consolidated statement of changes in equity continued

			Exceptional
			and other
			adjusting
	Statutory		items		Adjusted
Year ended 31 December 2025	£’000	Percentage	£’000	Percentage	£’000	Percentage
Profit before tax	896	100%	29,307	100%	30,203	100%
Profit before tax multiplied
by the rate of corporation tax
in the UK	224	25.00%	7, 327	25.00%	7,551	25.00%
Effects of:
Items not taxable/
deductable	(2,011)	(224.39%)	2,557	8.72%	546	1.81%
Changes in estimates
relating to prior periods	(391)	(43.64%)	–	–	(391)	(1.29%)
Total taxation expense
from continuing operations	(2,178)	(243.03%)	9,884	33.72%	7,70 6	25.52%

			Exceptional
			and other
			adjusting
	Statutory		items		Adjusted
Year ended 31 December 2024	£’000	Percentage	£’000	Percentage	£’000	Percentage
Profit before tax	20,680	100%	20,280	100%	40,960	100%
Profit before tax multiplied
by the rate of corporation tax
in the UK	5,170	25.00%	5,070	25.00%	10,240	25.00%
Effects of:
Expenses not deductible	967	4.68%	–	–	967	2.36%
Changes in estimates
relating to prior periods	(549)	(2.65%)	–	–	(549)	(1.34%)
Total taxation expense
from continuing operations	5,588	27.03%	5,070	25.00%	10,658	26.02%

There are no income tax consequences for the Company in respect of dividends declared prior to the

date of authorisation of these financial statements and for which a liability has not been recognised.

The Group expects its effective tax rate in the future to be affected by the outcome of any future

tax audits as well as the impact of changes in tax law.

The Finance Act 2024 received Royal Ascent on 22 February 2024, which amended certain aspects

of the multinational top-up tax and domestic top-up tax rules contained in Finance (No 2) Act

2023. The amendments will have retrospective effect for accounting periods beginning on or after

31 December 2023. The Group is below the €750 million income threshold and therefore the rules

will not impact the tax liabilities reported by the Group.

11. Earnings per share

The basic earnings per share figures are calculated by dividing profit for the year attributable to the

Parent Shareholders by the weighted average number of Ordinary Shares in issue during the year.

The diluted earnings per share figures allow for the dilutive effect of the conversion into Ordinary

Shares of the weighted average number of options outstanding during the year. Where the average

share price for the year is lower than the option price the options become anti-dilutive and are

excluded from the calculation.

The number of shares used for the earnings per share calculation are as follows:

	Year ended	Year ended
	31 December	31 December
	2025	2024
Basic weighted average number of Ordinary Shares	394,453	393,091
Effect of share incentive awards and options	6,112	3,372
Diluted weighted average number of Ordinary Shares	400,565	396,463

The calculation of adjusted earnings per share

is a key measurement used by management that is

not defined by IFRS. The adjusted earnings per share

measures should not be viewed in isolation

but rather treated as supplementary information.

Adjusted earnings per share

figures are calculated as the basic earnings per share adjusted for

exceptional items

, and fair value adjustments (being the amortisation and depreciation on fair

value uplifted assets and non-cash interest expenses). Adjustments are made net of the associated

taxation on the adjusted items. A reconciliation of the statutory profit to that used in the adjusted

earnings per share

calculations is as follows:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	Total	Total
	£’000	£’000
Profit for the period attributable to the Parent Shareholders	3,074	15,092
Add back exceptional items 1 (Note 5)	19,478	11,720
Less tax credit on exceptional items 1	(7,501)	(2,930)
Add back incremental depreciation and amortisation following fair value uplift (Note 4)	10,236	10,779
Less tax on incremental depreciation and amortisation following
fair value uplift	(2,559)	(2,695)
Less net non-cash interest	(407)	(2,219)
Add back tax expense on non-cash interest	102	555
Adjusted profit for the period attributable to the Parent Shareholders	22,423	30,302

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Notes to the consolidated financial statements continued

11. Earnings per share continued

	Year ended	Year ended
	31 December	31 December
	2025	2024
	Total	Total
	pence	pence
Basic EPS on profit for the year	0.8	3.8
Diluted EPS on profit for the year	0.8	3.8
Adjusted basic EPS 1 on profit for the year	5.7	7.7
Adjusted diluted EPS 1 on profit for the year	5.6	7.6

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financial statements.

12. Intangible assets

		Customer
		contracts and			Other
	Goodwill	relationships	Brands	Licences	intangibles	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Cost
At 1 January 2024	4,061	93,447	37,159	5,995	–	140,662
Additions in the year	–	–	–	1,260	–	1,260
Business combination
finalisation	(171)	–	–	–	–	(171)
Utilised in the year	–	–	–	(2,094)	–	(2,094)
At 31 December 2024	3,890	93,447	37,159	5,161	–	139,657
Additions in the year	–	–	–	–	652	652
Utilised in the year	–	–	–	(1,833)	–	(1,833)
At 31 December 2025	3,890	93,447	37,159	3,328	652	138,476
Accumulated amortisation
and impairment
At 1 January 2024	–	(49,919)	(8,726)	–	–	(58,645)
Charge for the year	–	(6,007)	(1,055)	–	–	(7,062)
At 31 December 2024	–	(55,926)	(9,781)	–	–	(65,707)
Charge for the year	–	(5,333)	(989)	–	–	(6,322)
At 31 December 2025	–	(61,259)	(10,770)	–	–	(72,029)
Net book amount
At 31 December 2024	3,890	37,521	27,378	5,161	–	73,950
At 31 December 2025	3,890	32,188	26,389	3,328	652	66,447

Management performed a goodwill impairment test in both the current and prior year, with no

goodwill impairment recognised (see Note 17).

The Group has been part of the UK ETS scheme since 01 January 2021. Licences represent carbon

allowances purchased by the Group and surrendered, as required, to meet carbon emissions in

excess of the Group’s granted allowances.

During the current year, the Group received 212,722 (2024: 217,197) free allowances from the

Government at no cost.

The other intangibles category consists of patent and development costs. These are attributable

to the Clay segments.

Amortisation is included within cost of sales in the income statement.

The remaining amortisation period of customer contracts and relationships is one to eleven years.

At 31 December 2025, the remaining amortisation period of brands is outlined below:

	Net book value
	at 31 December	Remaining
	2025	amortisation
Brands	£’000	period (years)
Ibstock Brick	25,068	39
Supreme	834	4
Longley	487	4
	26,389

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Notes to the consolidated financial statements continued

13. Property, plant and equipment

				Assets in the
				course of
	Land and	Mineral	Plant, machinery	construction
	buildings	reserves	and equipment	(AICC)	Total
	£’000	£’000	£’000	£’000	£’000
Cost
At 1 January 2024	204,315	63,193	217,6 83	95,329	580,520
Additions	16,240	–	8,007	22,943	47,190
Transfer to assets held for sale	(200)	–	–	–	(200)
Transfer from AICC	4,021	–	21,565	(25,586)	–
Disposals	(6,640)	(367)	(20,496)	–	(27,503)
At 31 December 2024	217,736	62,826	226,759	92,686	600,007
Additions	3,470	–	31,679	13,984	49,133
Transfer from AICC	8,578	–	85,870	(94,448)	–
Disposals	(27,275)	(110)	(32,272)	–	(59,657)
At 31 December 2025	202,509	62,716	312,036	12,222	589,483
Accumulated depreciation and impairment
At 1 January 2024	(52,117)	(19,862)	(67,788)	(353)	(140,120)
Charge for the year	(2,586)	(952)	(20,179)	–	(23,717)
Disposals	6,636	363	20,461	–	27,460
Impairment	(852)	–	(274)	–	(1,126)
At 31 December 2024	(48,919)	(20,451)	(67,780)	(353)	(137,503)
Charge for the year	(3,144)	(1,406)	(21,663)	–	(26,213)
Disposals	12,420	110	22,991	–	35,521
Impairment	(2,071)	(360)	(3,710)	–	(6,141)
At 31 December 2025	(41,714)	(22,107)	(70,162)	(353)	(134,336)
Net book amount
At 31 December 2024	168, 817	42,375	158,979	92,333	462,504
At 31 December 2025	160,795	40,609	241,874	11,869	455,147

Management reviews business performance based on segments reported in Note 4. In the current

year, impairments totalling £6.1 million relating to the Clay division (2024: £1.1 million relating to the

GRC business in the Clay division) were recognised as set out in Note 5. Further tangible asset

impairment tests were conducted at the end of 2025 with no impairments required for the

remainder of the assets (see Note 17).

In second half 2025, the Group disposed all Roofing related property, plant and equipment totalling

£19.7 million as part of the Roofing business disposal.

The Group has also sold the Bedford site in the year and lease it back for a five-year period with various

breaks in the lease term. Further details can be found in Note 5.

As part of the Group’s strategic planning process, the Group has considered the impact of both

transitional and physical risks and opportunities with regard to several climate change scenarios.

Through its scenario analysis, management has assessed no indicators of impairment for property,

plant and equipment as a result of changes in precipitation patterns and variability in weather

patterns such as more frequent storms, cyclones and floods. It anticipates that any impacts arising

from climate change would be covered by business-as-usual site refurbishments with no material

impact to current useful economic lives or carrying values.

The Group has also considered the potential future requirement to switch to alternative fuels in order

to reduce its CO

emissions. Although this is an evolving area as technology and capability advances,

management’s current assumption is that existing factories, and in particular kilns, will be able to be

retrofitted with no material impact to current useful economic lives or carrying values.

There are no assets which are pledged as security.

14. Inventories

	31 December	31 December
	2025	2024
	£’000	£’000
Raw materials	39,620	41,018
Work in progress	4,006	4,240
Finished goods	93,822	79,561
	137,448	124,819

The replacement cost of inventories is not considered to be materially different from the values above. At

31 December 2025, a provision of £3.4 million (2024: £2.9 million) was held against the inventory balance.

Inventory write downs recognised during the financial year as part of the 2025 restructuring single

coordinated plan totalled £2.4 million (2024: £nil). See further details in Note 5.

15. Trade and other receivables

	31 December	31 December
	2025	2024
	£’000	£’000
Trade receivables	28,472	38,866
Loss allowance	(1,217)	(1,296)
Net trade receivables	27, 255	37,570
Prepayments	3,597	5,145
Other tax	636	689
Other receivables	785	411
Total trade and other receivables	32,273	43,815

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Notes to the consolidated financial statements continued

16. Assets held for sale

	31 December	31 December
	2025	2024
	£’000	£’000
Assets classified as held for sale as of the beginning of the year	200	–
Additions	–	200
Disposals	(200)	–
Assets classified as held for sale as of the end of the year	–	200

In 2024, the Group’s surplus property in Matlock has been categorised as held for sale. The property

was sold in 2025.

17. Impairment

In the year, in light of the lower activity levels across the UK construction industry, management

identified indicators of potential impairment. Subsequently recoverable amounts across the Group’s

cash-generating units (CGUs) were calculated and compared with the carrying value of the assets

that were allocated to the relevant CGUs.

For tangible asset impairment testing purposes, the Group has determined that each factory is a

separate Cash Generating Unit (CGU), except for Bedford and Barnwell which are considered as one

Southern fencing and building CGU in the Concrete Segment. In 2025, the Group disposed the

Roofing CGU.

For impairment testing of intangible assets such as brands, customer relationships and goodwill,

CGUs are grouped at the legal entity level, as this is the lowest level that cash inflows generated

from these assets can be identified.

Following announcement of the 2025 restructuring, in the Clay segment, management performed

detailed impairment testing for the carrying value of the assets associated with the sites that will

cease production permanently, being Gatwick and Stowmarket.

The Group determined the recoverable amount based on the fair value less costs to disposal

(“FVLCTD”). This assessment falls within level 3 of the fair value hierarchy and was based on

management’s judgement that the assets could not be sold for any value, this being the assumption

the recoverable amount is most sensitive to.

Determination of FVLCTD by management reflected full impairment of all items of plant and

machinery, building improvement, right-of-use (ROU) assets for which management’s assessment

was that no alternative use, future salvage value or disposal proceeds are expected for the impacted

assets. This led to an impairment charge of £0.3m.

Additionally, management completed detailed impairment testing based on value-in-use (“VIU”),

for the Group’s other operating CGUs as at 31 December 2025.

The key assumptions used within the VIU calculation are noted below:

Management has used the latest Board approved budget and strategic planning forecasts in its

estimated future cash flows, covering the period 2026 to 2030, which includes assumptions

regarding industry demand for the Group’s products. These forecasts assume a return to normalised

levels of industry demand for the Group’s products over the medium term.

For the CGUs within the clay segment, management has identified a downside risk: an unforeseen,

structural decline of more than 15% in management’s forecast for long-term demand for the

Group’s brick products, benchmarked against demand levels experienced in five of the past ten

years. Should this occur, the Group might make the decision to close or mothball certain CGUs,

potentially leading to an impairment of property, plant and equipment up to £40 million. The final

impairment charge would be influenced by management’s strategic response to the altered market

demand and product mix.

The other assumptions used within the VIU calculation are noted below:

1. A pre-tax weighted average cost of capital (‘WACC’) of 11%-21% was used within the VIU calculation

based on an externally derived rate and benchmarked against industry peer group companies.

2. Terminal nominal growth rates of 2% were used reflecting long-term inflationary expectations

and management’s past experience and expectations.

Management is of the view that no reasonable movement in the assumptions of the WACC or

terminal growth rate outlined would result a material impairment of the Group’s non-current assets.

Management do not deem there to be any reasonably possible changes in the next 12 months that

would cause a material impairment in any of the CGUs of the concrete segment.

The cash flows include ongoing capital expenditure required to maintain the productive capacity

of the network but exclude any growth capital initiatives not committed.

The immediately quantifiable impacts of climate change and costs expected to be incurred in

connection with the Group’s climate resilience plan, are included within the budget and strategic plan,

which have been used to support the impairment reviews, with no material impact on cash flows. It

also expects any changes required due to physical risks arising from its assessment of climate change

would be covered by business-as-usual site refurbishments and phased over multiple years. Therefore,

the related cash outflow would not have a material impact in any given year. As a consequence, there

has been no material impact on the forecast cash flows used for impairment testing.

As a result of the detailed impairment testing performed as at 31 December 2025, a further

impairment of £6.0 million was identified at the Leicester site factory, which will be temporarily

closed from April 2026, with a recoverable value of £17.6 million. The identified impairment was

proportionally allocated to the building, mineral reserves and plant machinery and equipment assets.

15. Trade and other receivables continued

The Directors consider that the carrying amount of trade and other receivables approximates their

fair value. The Group’s assessment of any expected credit losses is included in Note 23.

The Group has sold without recourse certain trade receivables, sold trade receivables under this

agreement as at 31 December 2025 amounted to £4.7 million (2024: £nil). The proceeds were

presented within operating cash flows.

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Notes to the consolidated financial statements continued

17. Impairment continued

The impairment of assets valued at historical cost impacted the Clay segment of the Group in the

current period as follows:

	Clay
	£’000
Cost
Building improvements	2,071
Mineral reserves	360
Plant, machinery and equipment	3,710
Right-of-use assets	195
	6,336

No further impairment charges were recognised in other CGUs and no impairment reversals arose

during the year.

Goodwill and other intangibles

Goodwill and other intangibles (see note 12) are reviewed annually for impairment. Recoverability is

assessed by comparing the carrying amount of the intangible assets and the CGUs/group of CGUs that

derive benefit from the assets with the expected recoverable amount determined on a value-in-use

basis. See below for a summary of which operations our goodwill and other intangibles are allocated to:

	31 December	31 December
	2025	2024
CGU or group of CGUs	£’000	£’000
Goodwill
Longley (Concrete Segment)	2,964	2,964
Generix (Clay Segment)	888	888
Coltman (Concrete Segment)	38	38
	3,890	3,890
Other intangibles
Ibstock Brick (Clay Segment)	47,604	52,216
Generix (Clay Segment)	652	–
Forticrete (Concrete Segment)	–	140
Supreme (Concrete Segment)	11,640	14,432
Longley (Concrete Segment)	2,661	3,272
	62,557	70,060

Management is of the view that no reasonably possible change could cause impairment of goodwill

or other intangibles due to the significant headroom at a legal entity level.

Key assumptions used within the testing are consistent with those set out above. No impairment

was indicated.

For the Longley CGU, a pre-tax discount rate of 12.31% has been used, together with a long-term

growth rate of 2%. CGU-specific cash flows for the detailed five-year time period used by

management contain a revenue compound growth rate of 7.8%.

18. Trade and other payables

	31 December	31 December
	2025	2024
	£’000	£’000
Trade payables	52,877	53,806
Other tax and social security payable	6,936	5,629
Energy accruals	3,606	3,026
Customer rebates payable	7,363	7,988
Accruals and other payables	18,700	18,404
	89,482	88,853

There are no material differences between the fair values and book values stated above. As at

31 December 2025 all items were payable within 12 months of the balance sheet date.

19. Borrowings

	31 December	31 December
	2025	2024
	£’000	£’000
Current
Private Placement	339	339
Revolving Credit Facility	40,813	31,086
	41,152	31,425
Non-current
Private Placement	99,862	99,427
Total borrowings	141,014	130,852

At current and prior year end, 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%). The agreement 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, the Group renewed the £125 million RCF facility in 2025, of which is held with a

syndicate of four banks for an initial four-year period ending in November 2029, with one year

extension option. Interest is charged at a margin (depending upon the ratio of net debt to Adjusted

EBITDA) of between 160bps and 260bps above SONIA, SOFR or EURIBOR according to the currency

of the borrowing. The facility also includes an additional £50 million uncommitted accordion facility.

Based on current leverage, the Group will pay interest under the RCF initially at a margin of 255 bps.

This facility contains debt covenant requirements that align with those of the private placement with

the same testing frequency. As at 31 December 2025, the RCF was drawn down by £42.0 million

(2024: £31.0 million).

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Notes to the consolidated financial statements continued

19. Borrowings continued

The carrying values of financial liabilities have been assessed as materially in line with their fair

values, with the exception of £100 million of private placement notes. The fair value of these

borrowings has been assessed as £90.1 million (2024: £87.8 million).

No security is provided over the Group’s borrowings.

20. Provisions

	31 December	31 December
	2025	2024
	£’000	£’000
Restoration (i)	4,795	4,405
Dilapidations (ii)	4,646	3,816
Restructuring (iii)	3,357	1,397
Other (iv)	789	419
	13,587	10,037
Current	5,595	3,010
Non-current	7,992	7,027
	13,587	10,037

	Restoration	Dilapidations	Restructuring	Other
		(i) (ii)	(iii)	(iv)	Total
	£’000	£’000	£’000	£’000	£’000
At 1 January 2025	4,405	3,816	1,397	419	10,037
Utilised	–	(175)	(1,096)	(407)	(1,678)
Charged to the income
statement	131	819	3,056	777	4,783
Unwind of discount/change
in rate	259	186	–	–	445
At 31 December 2025	4,795	4,646	3,357	789	13,587

The current expected timeframe of provision requirements is as follows:

	Restoration	Dilapidations	Restructuring	Other
		(i) (ii)	(iii)	(iv)	Total
	£’000	£’000	£’000	£’000	£’000
Within one year	1,307	142	3,357	789	5,595
Between two and five years	–	2,199	–	–	2,199
Between five and ten years	170	1,868	–	–	2,038
Between ten and twenty years	3,264	407	–	–	3,671
Over twenty years	54	30	–	–	84
	4,795	4,646	3,357	789	13,587

(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 stemming from established practice once the sites have been fully

utilised. Provisions are based upon management’s best estimate 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 the

expected year of retirement. Climate change is specifically considered at the planning stage of

developments when restoration provisions are initially estimated. This includes projection of

costs associated with future water management 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

expected mineral 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 twenty-year timeframe. In discounting

the related obligations, expected future cash outflows have been determined with 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 best estimate of the likely contractual cash outflows, which are estimated to occur over

the lease term. Third party valuation experts are 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 constructive obligations will

unwind within one year to fifty years.

(iii) The restructuring provision relates to obligations arising from the Group’s restructuring

programmes (see further details in Note 5). The provision primarily comprises site closure costs

and redundancy expenses. The key estimates involved concern the expected redundancy cost

per impacted employee. All costs are expected to be incurred within twelve months of the

balance sheet date.

(iv) Other provisions include provisions for legal and warranty claim costs, which are expected to be

incurred within one year of the balance sheet date.

21. Post-employment benefit obligations

(a) Defined benefit plan

Analysis of movements in the net asset during the year:

	31 December	31 December
	2025	2024
	£’000	£’000
Funded plan at 31 December
Opening balance	7,839	9,832
Charge within operating profit	(1,247)	(959)
Interest income	394	423
Remeasurement loss recognised in the statement of comprehensive income	(1,002)	(1,457)
Carried forward at 31 December	5,984	7,839

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Notes to the consolidated financial statements continued

21. Post-employment benefit obligations continued

(a) Defined benefit plan continued

The Group participates in the Ibstock Pension Scheme (the ‘Scheme’), a defined benefit pension

scheme in the UK. The Scheme closed to future accrual from 1 February 2017. The Scheme has four

participating employers – Ibstock Brick Limited, Forticrete Limited, Anderton Concrete Products

Limited and Figgs Bidco Limited – and was funded by payment of contributions to a separate

Trustee administered fund. The Scheme is a revalued earnings plan and provides benefits to its

members based on their length of membership in the Scheme and their average salary over that

period. The Scheme is administered by Trustees who employ independent fund managers for the

investment of the pension scheme assets. These assets are kept entirely separate from those of

the Group.

The valuation used as at 31 December 2025 has been based on the results of the 30 November 2023

triennial actuarial valuation, as updated for changes in demographic assumptions, as appropriate.

Total annual contributions, if any, to the Scheme are based on independent actuarial advice, and are

gauged to fund future pension liabilities in respect of service up to the balance sheet date. The

Scheme is subject to an independent actuarial valuation at least every three years using the

projected unit method. The next actuarial valuation is expected to be carried out in November 2026.

On 20 December 2022, the Scheme completed a full buy-in transaction with a specialist third party

provider, which represented a significant step in the Group’s continuing strategy of de-risking its

pensions exposure. This transaction, together with the partial buy-in transaction in 2020 insure the

majority of the Group’s defined benefit liabilities. As a result, the insured asset and the

corresponding liabilities of the Scheme are assumed to be broadly matched without exposure to

interest rate, inflation risk or longevity risk. However, there is a residual risk that the insurance

premium may change following a data cleanse to reflect a more accurate liability position. If the

surplus Scheme assets are insufficient to meet any additional premium, then the Group may need to

pay an additional contribution into the Scheme.

The defined benefit pension scheme (measured under IAS 19 Employee Benefits) is in a net surplus

position as the Trust Deed provides Ibstock with an unconditional right to a refund of surplus asset.

This assumes the full gradual settlement of plan liabilities over time until all members have left the

plan in the event of a plan wind-up. Furthermore, in the ordinary course of business the Trustees

have no right to unilaterally wind up or otherwise augment the benefits due to the members of the

Scheme. In line with IFRIC 14, a net pension asset has been recognised. The corresponding deferred

tax liability should be measured by applying the standard rate of corporation tax. A deferred tax

liability of £1.5 million (2024: £2.0 million) has been recognised.

Balance sheet assets/(obligations):

	31 December	31 December
	2025	2024
	£’000	£’000
Insured annuities	314,879	320,298
Cash fund investment	7,193	9,593
Cash	851	1,045
Total market value of assets	322,923	330,936
Present value of Scheme liabilities	(316,939)	(323,097)
Net Scheme asset	5,984	7, 839

Cash fund investment was held with M&G Investment Management in order to protect the capital

of the pension.

Cash fund investment is valued at Level 1 in the fair value hierarchy and all other assets held by the

Scheme are Level 2 in the hierarchy. The cash fund had a quoted market price in an active market,

whilst cash and insured annuities are unquoted.

The amounts recognised in the income statement are:

	31 December	31 December
	2025	2024
	£’000	£’000
Administrative expenses	1,247	1,079
Past service income	–	(120)
Defined contribution scheme costs (Note 21b)	5,737	4,693
Charge within labour costs and operating profit	6,984	5,652
Interest income	(394)	(423)
Total charge to the income statement	6,590	5,229

Remeasurements recognised in the statement of comprehensive income:

	31 December	31 December
	2025	2024
	£’000	£’000
Remeasurement losses on defined benefit scheme assets	(3,117)	(37,470)
Remeasurement gains arising from changes in financial
assumptions	7,665	32,536
Remeasurement (losses)/gains arising from changes in demographic assumptions	(2,892)	2,134
Experience (losses)/gains	(2,658)	1,343
Other comprehensive expense	(1,002)	(1,457)

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Notes to the consolidated financial statements continued

21. Post-employment benefit obligations continued

Changes in the present value of the defined benefit obligations are analysed as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Present value of defined benefit obligation at beginning of year	(323,097)	(363,887)
Past service income	–	120
Interest cost	(17,0 42)	(16,090)
Experience (losses)/gains	(2,658)	1,343
Benefits paid	21,085	20,747
Remeasurement gains arising from changes in financial
assumptions	7,665	32,536
Remeasurement (losses)/gains arising from changes in demographic assumptions	(2,892)	2,134
Present value of defined benefit obligations carried forward
at 31 December	(316,939)	(323,097)

Changes in the fair value of plan assets are analysed as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Fair value of pension scheme assets at beginning of the year	330,936	373,719
Interest income	17, 436	16,513
Remeasurement losses on defined benefit scheme assets	(3,117)	(37,470)
Benefits paid	(21,085)	(20,747)
Administrative expenses	(1,247)	(1,079)
Fair value of pension scheme assets carried forward	322,923	330,936

Plan assets are comprised as follows:

		31 December 2025
	Quoted	Unquoted	Total
	£’000	£’000	£’000	%
Insured annuities	–	314,879	314,879	98%
Cash and net current assets	7,193	851	8,044	2%
Total fair value of plan assets	7,193	315,730	322,923	100%

		31 December 2024
	Quoted	Unquoted	Total
	£’000	£’000	£’000	%
Insured annuities	–	320,298	320,298	97%
Cash and net current assets	9,593	1,045	10,638	3%
Total	9,593	321,343	330,936	100%

In light of the fact that the pension scheme was in a net surplus position after the full buy-in, on

27 February 2023 the Trustees and the Group agreed that the Group would suspend paying regular

contributions with effect from 1 March 2023. The schedule of contributions was reviewed again as

part of the 30 November 2023 actuarial valuation, and as the net surplus position remained

unchanged, no further contributions were required.

The weighted average duration of the defined benefit obligation is 12 years (2024: 12 years).

The principal assumptions used by the actuary in their calculations were:

	31 December	31 December
	2025	2024
	Per annum	Per annum
Discount rate	5.50%	5.45%
RPI inflation	2.95%	3.25%
CPI inflation	2.50%	2.75%
Rate of increase in pensions in payment	3.50%	3.65%
Commutation factors	19.3	19.5
Mortality assumptions: life expectancy from age 65
For a male currently aged 65	21.7 years	21.4 years
For a female currently aged 65	24.3 years	24.2 years
For a male currently aged 40	23.5 years	23.1 years
For a female currently aged 40	26.0 years	26.0 years

The post-retirement mortality assumptions allow for expected changes to life expectancy. The life

expectancies quoted for members currently aged 40 assume that they retire at age 65 (i.e. 25 years

after the balance sheet date).

The principal financial assumption is the real discount rate, being the excess of the discount rate over

the rate of inflation. The discount rate is based on the market yields on high-quality corporate bonds

of appropriate currency and term to the defined benefit obligations. The obligations are primarily in

Sterling and have a maturity in line with the duration of Scheme liabilities. If the real discount rate

increased/decreased by 0.25%, the defined benefit obligations at 31 December 2025 would

decrease/increase by approximately 2.9%.

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Notes to the consolidated financial statements continued

21. Post-employment benefit obligations continued

The impact on the defined benefit obligation to changes in the financial and demographic

assumptions is shown below:

	31 December	31 December
	2025	2024
	£’000	£’000
Present value of defined benefit obligations at 31 December	(316,939)	(323,097)
0.25% decrease in discount rate	(9,090)	(9,589)
0.25% increase in discount rate	8,669	9,133
0.25% increase in inflation rate	(5,572)	(5,432)
0.25% decrease in inflation rate	4,625	5,040
0.25% increase in pension growth rate	(6,609)	(6,863)
0.25% decrease in pension growth rate	6,366	6,610
1 year increase in life expectancy	(12,614)	(12,390)
1 year decrease in life expectancy	12,721	12,477

In July 2024, the Court of Appeal confirmed an earlier ruling by the High Court in the Virgin Media

Limited vs NTL Pension Trustees II Limited case that considered the implications of Section 37 of the

Pension Schemes Act 1993. The ruling determined that certain pension plan amendments were

invalid unless accompanied by the correct actuarial confirmation.

On 5 June 2025, the Government issued a statement recognising that schemes and sponsoring

employers need clarity around scheme liabilities and member benefit levels in order to plan for

the future, further to last year’s Court of Appeal judgement in the Virgin Media pension case.

The Government is looking to introduce legislation to give affected pension scheme the ability

to retrospectively obtain written actuarial confirmation that historic benefit changes met the

necessary standards.

In 2024, the Group commenced an assessment of the potential impact of the Virgin Media ruling,

working in collaboration with the Trustees of its sponsored pension scheme. The Trustees have

engaged legal advisers to review all deeds executed between 6 April 1997 and 5 April 2016. This

review includes deeds related to the Ibstock Pension Scheme as well as those associated with various

other schemes that were subsequently merged into it.

Of the 52 deeds identified, 10 did not have appended actuarial confirmations. It remains unclear

whether amendments were made without the required ‘Section 37’ confirmation from the Scheme

Actuary, introducing uncertainty regarding the potential impact of these deeds on the valuation of

pension obligations.

As at 31 December 2025, the Group is unable to quantify any potential impact on its pension

scheme until the assessment in light of the Virgin Media ruling is complete. The Group understands

that the Trustees have established policies and procedures to ensure compliance with applicable

laws and regulations. These include regular Trustee meetings attended by professional advisers

such as the Scheme Actuary, ongoing involvement of legal counsel, annual scheme audits,

and triennial valuations.

(b) Defined contribution plan

The Group operates defined contribution schemes under the Ibstock Pension Scheme, the Supreme

Concrete Limited Pension Scheme, the Anderton Concrete Pension Scheme, the Supreme Concrete

Group Personal Plan and the Longley Concrete Pension scheme. Contributions by both employees

and Group companies are held in externally invested, externally administered funds.

The Group contributes a specified percentage of earnings for members of the above defined

contribution schemes and thereafter has no further obligations in relation to the Scheme. The total

cost charged to the income statement in relation to the defined contribution scheme in the year was

£5.7 million (2024: £4.7 million).

22. Deferred tax assets/liabilities

The movement on the deferred tax account is shown below:

	31 December	31 December
	2025	2024
	£’000	£’000
Net deferred tax liability at beginning of period	(91,940)	(89,929)
Tax credited/(charged) to the consolidated income statement	2,928	(2,586)
Tax credited within other comprehensive income	304	451
Tax credit directly to equity	13	124
Net deferred tax liability at period end	(88,695)	(91,940)
Presented in the consolidated balance sheet after offset as:
Deferred tax liabilities	(88,695)	(91,940)
	(88,695)	(91,940)
Deferred tax assets and liabilities before offsetting of balances
within the same tax jurisdiction are as follows:
Deferred tax assets	5,138	5,427
Deferred tax liabilities	(93,833)	(97,367)
Net deferred tax liability at period end	(88,695)	(91,940)
Deferred tax assets expected to unwind within one year	3,151	3,005
Deferred tax assets expected to unwind after one year	1,987	2,422
Total deferred tax assets	5,138	5,427
Deferred tax liabilities expected to unwind within one year	(5,982)	(5,975)
Deferred tax liabilities expected to unwind after one year	(87,851)	(91,392)
Total deferred tax liabilities	(93,833)	(97,367)

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Notes to the consolidated financial statements continued

22. Deferred tax assets/liabilities continued

The movement in the net deferred tax liability analysed by each type of temporary difference is as follows:

			Year ended 31 December 2025		As at 31 December 2025
	Net balance at	Recognised		Recognised
	1 January	in income	Recognised	directly	Deferred tax		Deferred tax
	2025	statement	in OCI	in equity	Net	assets	liabilities
Deferred tax assets/(liabilities)	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Intangible fixed assets	(16,111)	1,559	–	–	(14,552)	–	(14,552)
Tangible fixed assets	(76,598)	1,511	–	–	(75,087)	–	(75,087)
Right-of-use assets	1,679	(126)	–	–	1,553	1,553	–
Rolled-over and held-over capital gains	(2,699)	–	–	–	(2,699)	–	(2,699)
Employee pension liabilities	(1,959)	140	324	–	(1,495)	–	(1,495)
Provisions	2,922	100	–	–	3,022	3,022	–
Share incentive plans	783	(256)	–	13	540	540	–
Derivative financial instrument	20	–	(20)	–	–	–	–
Tax losses	23	–	–	–	23	23	–
Deferred tax (liabilities)/assets before offsetting	(91,940)	2,928	304	13	(88,695)	5,138	(93,833)
Offset of balances within the same tax jurisdiction						(5,138)	5,138
Net deferred tax liabilities							(88,695)

			Year ended 31 December 2024		As at 31 December 2024
	Net balance at	Recognised		Recognised
	1 January	in income	Recognised	directly	Deferred tax		Deferred tax
	2024	statement	in OCI	in equity	Net	assets	liabilities
Deferred tax assets/(liabilities)	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Intangible fixed assets	(17, 8 46)	1,735	–	–	(16,111)	–	(16,111)
Tangible fixed assets	(72,547)	(4,051)	–	–	(76,598)	–	(76,598)
Right-of-use assets	1,025	654	–	–	1,679	1,679	–
Rolled-over and held-over capital gains	(2,699)	–	–	–	(2,699)	–	(2,699)
Employee pension liabilities	(2,458)	62	437	–	(1,959)	–	(1,959)
Provisions	3,771	(849)	–	–	2,922	2,922	–
Share incentive plans	796	(137)	–	124	783	783	–
Derivative financial instrument	6	–	14	–	20	20	–
Tax losses	23	–	–	–	23	23	–
Deferred tax (liabilities)/assets before offsetting	(89,929)	(2,586)	451	124	(91,940)	5,427	(97,367)
Offset of balances within the same tax jurisdiction						(5,427)	5,427
Net deferred tax liabilities							(91,940)

There are no unrecognised deferred tax assets or liabilities as at 31 December 2025 or the prior year end.

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Notes to the consolidated financial statements continued

23. Financial instruments – risk management

Financial assets

	31 December	31 December
	2025	2024
	£’000	£’000
Trade and other receivables (Note 15)	28,040	37,981
Cash and cash equivalents	20,971	9,292
Total	49,011	47,273

Financial liabilities

	31 December	31 December
	2025	2024
	£’000	£’000
Trade and other payables (Note 18)	84,526	83,224
Derivative financial instruments	–	78
Lease liabilities (Note 27)	29,510	35,082
Borrowings (Note 19)	141,014	130,852
Total	255,050	249,236

With the exception of the Group’s derivative financial instruments, detailed below, all financial

assets and liabilities are held at amortised cost.

Credit risk

Credit risk arises from cash and cash equivalents, trade receivables and deposits with banks and is

managed on a Group basis. This risk arises from transactions with banks, such as those involving

cash and cash equivalents and deposits. To reduce the credit risk, the Group has concentrated its

main activities with a Group of banks that have strong, independently verified credit ratings. For

each bank, individual risk limits are set based on its ﬁnancial position, credit ratings, past experience

and other factors. The utilisation of credit limits is regularly monitored.

The Group has significant sales contracts with a number of blue-chip companies and accordingly the

Directors believe there is a limited exposure to credit risk, although this is actively monitored at the

operational Company level. The Group’s policy on credit risk requires appropriate credit checks on

potential customers before sales commence. The Group also maintains credit insurance.

The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS

9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure

the expected credit losses, trade receivables have been grouped based on shared credit risk

characteristics and the days past due.

The ageing analysis of the trade receivables (from date of past due) assessed for impairment, but

concluded as no impairment is required, is as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Not past due	16,500	25,573
Less than one month past due	8,047	8,833
One to six months past due	2,063	1,762
Six to twelve months past due	781	596
More than twelve months past due	649	1,217
	28,040	37,981

The loss allowance recognised against the receivables in the above table are as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Less than one month past due	535	295
One to six months past due	–	103
Six to twelve months past due	36	377
More than twelve months past due	646	521
	1,217	1,296

Movements in the provision for impairment of trade receivables are as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Opening balance	(1,296)	(965)
Charged to the income statement	(449)	(748)
Utilised	8	75
Released	520	342
Closing impairment provision	(1,217)	(1,296)

The gross carrying amount of trade receivables, reflecting the maximum exposure to credit risk,

is £28.5 million (2024: £38.9 million).

Other financial assets at amortised cost are insignificant and the associated credit risk is

considered immaterial.

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Notes to the consolidated financial statements continued

23. Financial instruments – risk management continued

Market risk

Market risk is defined as the risk that the fair value of future cash flows of a financial instrument

will fluctuate because of changes in market prices. Market risk comprises three types of risk, being

currency risk, interest rate risk and other price risk. The Group’s interest rate risk arises principally from

the Revolving Credit Facility, which attracts floating rate interest, see Note 19. The Group manages

its interest rate risk through the use of the fixed rate Private Placement in addition to using this

floating rate RCF debt with varying repayment terms. The Group does not trade in derivative

financial instruments and is not considered to be significantly exposed to this and other price risks.

The exposure to currency risk is considered low.

Interest rate sensitivity analysis:

For the Group’s borrowings, sensitivity analysis is considered assuming the amount of liability

outstanding at the reporting date was outstanding for the whole year. A 0.25 percentage points

increase or decrease represents management’s assessment of the reasonably possible change in

interest rates.

If interest rates had been 0.25 percentage points higher/lower and all other variables were held

constant, the Group’s profit for the year ended 31 December 2025 would decrease/increase by

£0.2 million (2024: £0.1 million), which is attributable to the Group’s exposure to interest rates on

its variable rate borrowings.

The exposure in different currencies of financial assets and liabilities is as follows:

	Sterling	US Dollar	Euro	Other	Total
At 31 December 2025	£’000	£’000	£’000	£’000	£’000
Financial assets
Cash and cash equivalents	19,386	3	1,582	–	20,971
Trade and other receivables (Note 15)	27,678	–	362	–	28,040
	47,064	3	1,944	–	49,011
Financial liabilities
Borrowings (Note 19)	(141,014)	–	–	–	(141,014)
Lease liabilities (Note 27)	(29,510)	–	–	–	(29,510)
Trade and other payables (Note 18)	(84,229)	–	(288)	(9)	(84,526)
	(254,753)	–	(288)	(9)	(255,050)

	Sterling	US Dollar	Euro	Other	Total
At 31 December 2024	£’000	£’000	£’000	£’000	£’000
Financial assets
Cash and cash equivalents	7,918	136	1,238	–	9,292
Trade and other receivables (Note 15)	37,741	–	240	–	37,981
	45,659	136	1,477	–	47,273
Financial liabilities
Borrowings (Note 19)	(130,852)	–	–	–	(130,852)
Lease liabilities (Note 27)	(35,082)	–	–	–	(35,082)
Derivative financial instruments	(78)	–	–	–	(78)
Trade and other payables (Note 18)	(82,591)	(206)	(440)	13	(83,224)
	(248,603)	(206)	(440)	13	(249,236)

At 31 December 2025, the Group had negligible risk to currency fluctuations as the majority of

assets and liabilities are held in the same functional currency.

Derivative financial instruments

The Group entered into forward currency contracts as cash flow hedges to manage its exposure to

foreign currency fluctuations associated with the future purchase of plant and equipment required

for the construction of the major capital expenditure projects. These instruments are measured at

fair value using Level 2 valuation techniques subsequent to initial recognition.

At 31 December 2025, no derivative financial instrument was recognised (2024: liability of £0.1 million).

No amounts have been reclassified to profit or loss as a result of the hedged cash flow during the

year. The cash flow hedging reserve within equity includes an accumulated amount of £0.1 million

deficit (2024: £0.1 million deficit) relating to these derivative financial instruments.

Liquidity risk

The Group has generated sufficient cash from operations to meet its working capital requirements.

The Group manages liquidity risk by entering into committed bank borrowing facilities to ensure the

Group has sufficient funds available, and monitors cash flow forecasts to ensure the Group has

adequate borrowing facilities. Excess cash is placed on interest-bearing deposits with maturity fixed

at no more than three months.

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Notes to the consolidated financial statements continued

23. Financial instruments – risk management continued

Liquidity risk continued

The maturity of the Group’s borrowings is as follows:

	Less than six	Six months to	One to two	Two to five	Greater than
	months	one year	years	years	five years	Total
At 31 December 2025	£’000	£’000	£’000	£’000	£’000	£’000
Borrowings
Borrowings	41,152	–	–	29,972	69,890	141,014
Total	41,152	–	–	29,972	69,890	141,014

	Less than six	Six months to	One to two	Two to five	Greater than
	months	one year	years	years	five years	Total
At 31 December 2024	£’000	£’000	£’000	£’000	£’000	£’000
Borrowings
Borrowings	425	–	31,000	30,404	69,023	130,852
Total	425	–	31,000	30,404	69,023	130,852

At 31 December 2025, the Group had a £125 million Revolving Credit Facility (31 December 2024:

£125 million). £84.0 million (2024: £87.0 million) of these facilities were utilised during the year

with a repayment of £73.0 million (2024: £81.0 million). The RCF was drawn down by £42.0 million

as at 31 December 2025 (2024: £31 million). This resulted in an interest charge of £5.1 million

(2024: £3.8 million).

For details of the maturity of other financial liabilities, see Notes 19 and 27.

The contractual non-discounted future cash flows in respect of borrowings and lease liabilities are:

	Less than	One to two	Two to five	Greater than
	one year	years	years	five years	Total
At 31 December 2025	£’000	£’000	£’000	£’000	£’000
Lease liabilities	10,962	8,754	9,509	3,446	32,671
Borrowings	45,317	3,295	37,602	72,491	158,705
Total	56,279	12,049	47,111	75,937	191,376

	Less than	One to two	Two to five	Greater than
	one year	years	years	five years	Total
At 31 December 2024	£’000	£’000	£’000	£’000	£’000
Lease liabilities	11,279	10,001	14,403	4,505	40,188
Borrowings	33,897	2,897	35,955	74,068	146,817
Total	45,176	12,898	50,358	78,573	187,0 05

(The RCF balance has been added in the 2024 comparison to provide a like for like view of the

contractual non-discounted minimum future cash flows of the borrowings).

The table below details changes in the Group’s liabilities arising from financing actives, including

both cash and non-cash changes. Liabilities arising from financing activities are those for which cash

flows were, or future cash flows will be, classified in the Group’s Consolidated Cash Flow Statement

as cash flows from financing activities.

			Addition to
		Financing	Lease
	1 January	from cash	liabilities		31 December
	2025	flows	(note 27)	Other	2025
	£’000	£’000	£’000	£’000	£’000
Lease liabilities (Note 27)	35,082	(9,998)	4,426	–	29,510
Borrowings (Note 19)	130,852	9,960	–	202	141,014
	165,934	(38)	4,426	202	170,524

			Addition to
		Financing	Lease	Lease
	1 January	from cash	liabilities	modification		31 December
	2024	flows	(note 27)	(note 27)	Other	2024
	£’000	£’000	£’000	£’000	£’000	£’000
Lease liabilities (Note 27)	43,833	(9,651)	4,999	(3,858)	(241)	35,082
Borrowings (Note 19)	124,488	6,000	–	–	364	130,852
	168,321	(3,651)	4,999	(3,858)	123	165,934

Fair value hierarchy

IFRS 13 Financial Instruments: Disclosures requires fair value measurements to be recognised using

a fair value hierarchy 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, either directly (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,

unobservable inputs).

At 31 December 2025 and 31 December 2024 all of the Group’s fair value measurements have been

categorised as Level 2 with the exception of (i) certain equities within the Group’s pension scheme,

which were categorised as Level 1 valuations and (ii) the insured pensioner and deferred pensioner

asset, which was categorised as a Level 3 valuation and uses assumptions set out in Note 21 to align

its valuation to the related liability.

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Notes to the consolidated financial statements continued

23. Financial instruments – risk management continued

Capital risk management

The capital structure of the Group consists of net debt

(borrowings disclosed in Note 19 after

deducting cash and bank balances) and equity of the Parent Company, comprising issued capital,

reserves and retained earnings, as disclosed in Note 24 and Note 25.

The Group’s objectives when managing capital are to safeguard its ability to continue as a going

concern in order to provide returns for Shareholders and benefits for other stakeholders and to

maintain an optimal cost of capital. In order to maintain or adjust the capital structure, the Group

may adjust the amount of dividends paid to Shareholders, return capital to Shareholders, issue new

shares, or borrow additional debt.

The Group must comply with two covenants each half year, as set out in Note 19. The covenants are

certain ratios of interest cover and leverage, which are monitored on a regular basis by the Board.

At the year end date, significant headroom existed on both covenant conditions.

Dividend policy

In line with the Group capital allocation framework, it will look to pay an ordinary dividend. It is

committed to paying dividends that are sustainable and progressive, with a targeted cover of

approximately two times adjusted profit after tax. This adjusted profit measure can be seen in

Note 11 to the Group financial statements. After investing to maintain, enhance and grow our

assets, it will return surplus capital to Shareholders.

The Board is recommending a final ordinary dividend of 1.5 pence per share for the 2025

(2024: 2.5 pence per share). See Note 31 for further detail. At 31 December 2025, the Parent

maintains significant distributable reserves of around £237 million (2024: around £267 million).

24. Share capital

		Share
	Number of	capital
	shares	£’000
At 1 January 2024
Issued, called-up and fully paid:
Ordinary Shares of £0.01 each	409,631,594	4,096
At 31 December 2024 and 31 December 2025	409,631,594	4,096
Comprising:
Issued, called-up and fully paid:
Ordinary Shares of £0.01 each	409,631,594	4,096

In the years ended 31 December 2025 and 31 December 2024, there were no changes to the

Group’s issued share capital. The Company does not have a limited amount of authorised capital.

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated

financial statements.

25. Reserves

Share premium

The share premium account is used to record the aggregate amount or value of premia paid when

the Company’s shares are issued/redeemed at a premium.

Other reserves

The movement in other reserves during the period is set out in the table below:

	Cash flow
	hedging	Merger	Own shares	Treasur y	Total other
	reserve	reserve	held	shares	reserves
	£’000	£’000	£’000	£’000	£’000
Balance at 1 January 2025	(65)	(369,119)	–	(27,907)	(397,091)
Other comprehensive expense	44	–	–	–	44
Issue of own shares held on exercise
of share options	–	–	–	1,193	1,193
At 31 December 2025	(21)	(369,119)	–	(26,714)	(395,854)
Balance at 1 January 2024	(25)	(369,119)	(514)	(30,000)	(399,658)
Other comprehensive expense	(40)	–	–	–	(40)
Issue of own shares held on exercise
of share options	–	–	514	2,093	2,607
At 31 December 2024	(65)	(369,119)	–	(27,907)	(397,091)

Cash flow hedging reserve

The cash flow hedging reserve records movements for effective cash flow hedges measured at fair

value as set out in Note 23. The accumulated balance in the cash flow hedging reserve will be

reclassified to the cost of the designated hedged item 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 period ended 31 December 2015 and is the difference between the share capital and share

premium of Figgs Topco Limited and the nominal value of the investment and preference shares in

Figgs Topco Limited acquired by the Company.

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 the employee share-based payment plans. Consideration, if any, received for the

sale of such shares is also recognised in equity with any difference between the proceeds from sale

and the original cost being taken to the profit and loss reserve. No gain or loss is recognised in the

income statement on the purchase, sale, issue or cancellation of equity shares. All remaining shares

held in EBT were issued to meet share option requirements in the current year.

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Notes to the consolidated financial statements continued

25. Reserves continued

Treasury share reserve

The Treasury share reserve represents shares acquired by the Group as part of its share buyback

programme in 2022.

In 2022, the Group engaged its brokers to purchase up to £30.0 million of shares on the open

market on its behalf. These shares are held by the Group to meet future requirements of employee

share based payment plans.

At 31 December 2025, the treasury shares are shown as a deduction from Shareholders’ equity at

cost totalling £26.7 million (31 December 2024: £27.9 million).

26. Share incentive plans

Share based payment charges:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Long Term Incentive Plan (26(a))	204	534
Senior Manager Share Plan (26(b))	(117)	232
Annual and Deferred Bonus Plan (26(c))	322	268
Save As You Earn/Share Incentive Plan (26(d)/(e)/(f))	75	219
	484	1,253

Executive share option plans

The Group operates a Long-Term Incentive Plan (LTIP) a Senior Manager Share Plan (SMSP) and an

Annual and Deferred Bonus Plan (ADBP) that provide share-based payment awards for selected

members of senior management. Awards were also granted under a Share Option Plan (SOP) until 2018.

(a) Long-Term Incentive Plan (LTIP)

The Group granted awards under the LTIP during the year for members of key leadership group.

Awards were made at the discretion of the Board. For the year ended 31 December 2025, restricted

share awards under the LTIP were granted in the form of nil-priced share options. Prior to 2025,

awards under the LTIP were in the form of performance shares and contained performance

conditions dependent upon the growth of the Group’s adjusted earnings per share (EPS), adjusted

Return on capital employed (ROCE), Total shareholder return (TSR) and certain Environmental, social

and governance (ESG) targets. Please refer to the information given in the Directors’ Remuneration

Report on pages 91 to 110 for details in relation to these performance measures.

During the year, 643,592 options (2024: 1,392,639) were granted over Ibstock Ordinary Shares

of one penny each and 353,794 were exercised at a weighted average share price at the date

of exercise of 176 pence (2024: 298,403 were exercised at a weighted average share price at the

date of exercise of 156 pence). During the year ended 31 December 2025, 1,698,202 options

(2024: 611,465) lapsed and at 31 December 2025, the weighted average contractual life remaining

was 1.3 years (2024: 1.3 years).

(b) Senior Manager Share Plan (SMSP)

The Group introduced the SMSP in 2021 to grant share awards to certain members of management.

Awards under the scheme have been granted in the form of nil-priced share options and contain

performance conditions dependent upon the growth of the Group’s adjusted EBITDA.

In the year ended 31 December 2025, no awards were granted (2024: 245,999) to management

under the SMSP. During the year 45,706 shares were exercised at a weighted average share price

at the date of exercise of 166 pence (2024: 98,655 were exercised with a weighted average share

price at the date of exercise of 160 pence). During the year 182,266 options (2024: 107,440 options)

lapsed or forfeited. At 31 December 2025, the weighted average contractual life remaining was

0.3 years (2024: 0.6 years).

The ADBP provides for the delivery of annual bonus earned in the financial year, in cash or in the

form of Ibstock shares. Where the Board determines that part of the bonus earned under the ADBP

is provided as an award of shares, these are deferred for a period of three years in the form of a

nil-cost option. A third of a participant’s bonus is usually deferred although it was agreed as part of

the Remuneration Policy review in 2025, that the level of deferral for the Executive Directors should

50% of bonus until they have reached the required level of shareholding that is required under the

Group’s shareholding guidelines. In the year ended 31 December 2025, 223,576 options (2024:

113,109) were awarded over Ordinary Shares under the ADBP in relation to the prior year end bonus.

No performance conditions apply to these awards.

In the year ended 31 December 2025, 257,791 options (2024: nil) were exercised under the

ADBP at a weighted average share price at the date of exercise of 177 pence (2024: 167 pence).

At 31 December 2025, the weighted average contractual life remaining was 1.1 years (2024: 1.5 years).

At 31 December 2025 160,422 options (2024: nil) lapsed or forfeited. An amount of £0.1 million

(2024: £0.1 million) had been recorded in accruals for the award relating to the bonus earned for the

year ended 31 December 2025. In the current year, £0.1 million (2024: £0.1m) prior period accruals

for the ADBP were reclassified to the share-based payment reserve.

All-employee share schemes

In addition to the Executive share option plans, the Group has operated two all-employee share-

based payment arrangements – the Ibstock Plc Sharesave Plan and a Share Incentive Plan (SIP). The

Group also made a ‘one-off’ award of shares to employees during 2022 as part of a ‘Fire Up Grant’.

(d) Save As You Earn (SAYE)

In order to participate in the Group’s Sharesave Plan, an employee must enter into a linked savings

contract with a bank or building society to make contributions from salary on a monthly basis over a

three year period. A participant who enters into a savings agreement is granted an option to acquire

Ordinary Shares of 1 pence each under the Sharesave Plan at a specified exercise price.

In the current year 4,255,913 awards were issued (2024: nil). In the current year, 10,227 shares were

exercised (2024: 308,180) with a weighted average share price of 114 pence (2024: 176 pence) and

226,440 options lapsed (2024: 1,370,889). As at 31 December 2025, the weighted average exercise

price of outstanding options was 114 pence (2024: 176 pence) and the remaining option life was

2.7 years (2024: nil).

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Notes to the consolidated financial statements continued

26. Share incentive plans continued

All-employee share schemes continued

(e) Share Incentive Plan (SIP)

Following the Group’s Initial Public Offering in 2015, the Company launched a SIP. Subject to

qualifying employment conditions, all employees were entitled to apply for free shares up to a value

of £800 depending on their period of service. The number of shares issued under the SIP in the year

ended 31 December 2016 was 553,150. The free shares had a three-year employment condition and

no further vesting conditions. In the year ended 31 December 2025, 7,150 shares lapsed (2024: nil)

and no shares were exercised (2024: nil). No awards have been made under the SIP since the original

grant in 2015.

(f) Fire Up Grant

In 2022 the Company, introduced its ‘Fire Up Share Grant’. This provided that, subject to qualifying

employment conditions, all employees below senior management were entitled to receive 500

nil-cost options. The number of shares issued under the SIP in 2022 was 1,070,000. The free shares

had a two-year employment condition and no further vesting conditions. All awards had been

exercised or released in 2024.

Share Option Plan (SOP)

In addition to the above discretionary share plans, the Group operated a Share Option Plan from

2018 to 2018 at the discretion of the Board. No options have been granted to management under

the SOP since 2018. In current year and prior year no options were exercised under the historical

SOP awards. In the year ended 31 December 2025, 164,597 options (2024: 50,081 options) lapsed.

The weighted average exercise price of options outstanding is 255 pence (2024: 241 pence).

At 31 December 2025 and 2024 there was no contractual life remaining. The SOP has an

employment condition of two years and no other performance conditions.

The assumptions used to calculate the fair value of the LTIP, SOP and ADBP awards granted during

the year ended 31 December 2025 are detailed below:

	ADBP	LTIP	SAYE
Grant date	20-Mar-25	23-May-25	12-Sep-25
Share price at grant date	£1.84	£1.92	£1.35
Exercise price	Nil	Nil	£1.14
Number of shares issued	191,765	595,882	4,255,913
Vesting period	3 years	3 years	3 years
Pricing model	Share price	Share price	Binomial
% expected to vest	100%	100%	90%
Expected share price
volatility	n/a	n/a	30%
Expected dividend yield	n/a	n/a	4%
Expected option life	n/a	3 years	3.4 years
Fair value per share	£1.84	£1.92	£0.35
Risk-free rate	n/a	n/a	4%

Awards under the executive share option plans and all-employee share schemes are as follows:

	Executive	All-employee
	share options	schemes
Outstanding at 1 January 2025	4,918,210	147,435
Awards granted	787,647	4,255,913
Awards granted as dividend equivalent	79,521	–
Awards exercised	(657,291)	(10,227)
Awards lapsed/forfeited	(2,205,487)	(233,590)
Awards outstanding at 31 December 2025	2,922,600	4,159,531

The expected volatility level has been calculated using historical daily data over a term

commensurate with the expected life of each award.

27. Leases and commitments

Amounts recognised within the consolidated balance sheet

The balance sheet shows the following amounts relating to leases:

	31 December	31 December
	2025	2024
	£’000	£’000
Right-of-use assets
Buildings	8,905	11,088
Equipment	11,444	13,196
Vehicles	2,943	4,079
Total right-of-use assets	23,292	28,363
Lease liabilities
Less than six months	(4,820)	(4,815)
Six months to one year	(4,768)	(4,656)
Current	(9,588)	(9,471)
One to two years	(8,163)	(8,750)
Two to five years	(8,833)	(13,004)
Greater than five years	(2,926)	(3,857)
Non-current	(19,922)	(25,611)
Total lease liabilities	(29,510)	(35,082)

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Notes to the consolidated financial statements continued

27. Leases and commitments continued

Amounts recognised within the consolidated balance sheet continued

Movement in right-of-use asset:

	Buildings	Equipment	Vehicles	Total
	£’000	£’000	£’000	£’000
Cost
At 1 January 2024*	31,219	28,316	7,6 83	67,218
Additions	–	2,627	2,354	4,981
Disposals*	(964)	(6,692)	(2,108)	(9,764)
At 31 December 2024*	30,255	24,251	7,929	62,435
Additions	435	2,623	1,063	4,121
Disposals	(1,175)	(2,908)	(2,220)	(6,303)
At 31 December 2025	29,515	23,966	6,772	60,253
Accumulated depreciation and impairment
At 1 January 2024*	(10,522)	(13,153)	(3,712)	(27,387)
Charge for the year	(3,045)	(4,487)	(2,246)	(9,778)
Lease modification	(3,858)	–	–	(3,858)
Impairment	(2,706)	–	–	(2,706)
Disposals*	964	6,585	2,108	9,657
At 31 December 2024*	(19,167)	(11,055)	(3,850)	(34,072)
Charge for the year	(2,423)	(4,375)	(2,199)	(8,997)
Impairment	(195)	–	–	(195)
Disposals	1,175	2,908	2,220	6,303
At 31 December 2025	(20,610)	(12,522)	(3,829)	(36,961)
Net book amount
At 31 December 2024	11,088	13,196	4,079	28,363
At 31 December 2025	8,905	11,444	2,943	23,292

* The information has been updated after the data cleansing exercise carried out in 2025.

Movement in lease liabilities:

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
As at 1 January	(35,082)	(43,833)
Additions	(4,426)	(4,999)
Disposals	–	252
Lease modification	–	3,858
Interest payments	(2,048)	(2,494)
Cash rental payments	12,046	12,134
As at 31 December	(29,510)	(35,082)

Amounts recognised within the consolidated income statement

Depreciation charge of right-of-use assets

	Year ended	Year ended
	31 December	31 December
	2025	2024
	£’000	£’000
Buildings	2,423	3,045
Equipment	4,375	4,487
Vehicles	2,199	2,246
	8,997	9,778
Impairment	195	2,706
Depreciation expense (included within cost of sales)	9,192	12,484
Interest expense (included within finance costs)	2,048	2,494

In the year ended 31 December 2025, the benefit of Adjusted EBITDA as a result of IFRS 16 leases

was £12.0 million (2024: £12.1 million). Operating lease charges now expensed via depreciation

amount to £9 million (2024: £9.8 million) and interest of £2 million (2024: £2.5 million), resulting in a

net reduction in profit before taxation of £1 million (2024: £0.2 million).

The Group is lessee of a number of properties in addition to plant and machinery which it uses in its

operations. The operating leases run for a variety of terms and their non-cancellable commitments

are set out above. There is no material contingent rent payable, renewal or purchase options,

escalation clauses or restrictions imposed by the lease agreements.

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Notes to the consolidated financial statements continued

27. Leases and commitments continued

The Group as lessor

The Group acts as lessor on a number of properties where it leases surplus land not currently utilised

by the business. The operating leases run for a variety of terms and their future minimum lease

payments receivable are set out as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Within one year	6	64
Between one and five years	10	–
After five years	15	–

Capital commitments

Capital expenditure committed to but not yet incurred at the balance sheet date is as follows:

	31 December	31 December
	2025	2024
	£’000	£’000
Amount contracted for, which has not been provided	4,510	16,021

28. Notes to the Group cash flow statement

	31 December	31 December
	2025	2024
Cash flows from operating activities	£’000	£’000
Profit before taxation	896	20,680
Adjustments for:
Depreciation	35,210	33,495
Asset impairment charge – property, plant and equipment (Note 5)	6,141	1,126
Asset impairment charge – right-of-use assets (Note 5)	195	2,706
Write-off of inventory (Note 5)	2,408	–
Amortisation of intangible assets	6,322	7, 062
Net finance costs	9,138	6,393
Gain on disposal of business and fixed assets	(178)	(261)
Research and development expenditure credit	(3,927)	(2,635)
Share based payments	484	1,253
Post-employment benefits	1,247	959
Other	–	(245)
	57,936	70,533
Increase in inventory	(24,196)	(5,633)
Decrease/(increase) in debtors	12,309	(5,529)
Increase in creditors	(565)	8,355
Increase/(decrease) in provisions	2,551	(4,820)
Cash generated from operations	48,035	62,906

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Notes to the consolidated financial statements continued

29. Group subsidiaries

Ibstock Plc had the following subsidiaries as at 31 December 2025:

				Proportion of	Proportion of
				Ordinary Shares	Ordinary Shares
		Registration	Country of	held directly by	held by the
Entity	Principal activity	number	incorporation	the parent	Group
Ibstock Building Products Limited 1	Holding Company	09329395	UK	100%	100%
Figgs Bidco Limited	Holding Company	09332893	UK	100%	100%
Ibstock Telling GRC Limited	Manufacturer and supplier of glass reinforced concrete products	09415340	UK	100%	100%
Ibstock Group Limited	Dormant	00984268	UK	100%	100%
Forticrete Limited	Manufacturer of concrete products	00221210	UK	100%	100%
Anderton Concrete Products Limited	Manufacturer and supplier of precast and prestressed concrete products	01900103	UK	100%	100%
Supreme Concrete Limited	Manufacturer and supplier of precast and prestressed concrete products	01410463	UK	100%	100%
Ibstock Brick Holding Company Limited	Holding Company	00784339	UK	100%	100%
Ibstock Brick Limited	Brick manufacturer	00063230	UK	100%	100%
Ibstock Manufacturing Services Limited	Brick manufacturer	12292985	UK	100%	100%
Kevington Building Products Limited	Dormant	02122467	UK	100%	100%
Ibstock Brick Leicester Limited	Dormant	00106667	UK	100%	100%
Ibstock Brick Aldridge Limited	Dormant	0 0614225	UK	100%	100%
Ibstock Brick Himley Limited	Dormant	00092769	UK	100%	100%
Ibstock Westbrick Limited	Dormant	01606990	UK	100%	100%
Ibstock Brick Aldridge Property Limited	Dormant	00251918	UK	100%	100%
Moore & Sons Limited	Dormant	00118818	UK	100%	100%
Manchester Brick & Precast Limited	Dormant	02888297	UK	100%	100%
Ibstock Brick Nostell Limited	Dormant	00531826	UK	100%	100%
Ibstock Brick Roughdales Limited	Dormant	00598862	UK	100%	100%
Ibstock Brick Cattybrook Limited	Dormant	00011298	UK	100%	100%
Ibstock Hathernware Limited	Dormant	00424843	UK	100%	100%
Ibstock Bricks (1996) Limited	Holding Company	00246855	UK	100%	100%
Loopfire Systems Limited	Dormant	04105160	UK	100%	100%
Longley Holdings Limited	Holding Company	02027916	UK	100%	100%
Longley Concrete Ltd	Manufacturer and supplier of precast and prestressed concrete products	00440463	UK	100%	100%
Generix Facades Ltd	Manufacturer and supplier of facades	08432030	UK	100%	100%
Generix Facades International Limited	Dormant	09777110	UK	100%	100%
G-Tech Coper Limited	Dormant	00888875	UK	100%	100%
Coltman Precast Concrete Limited	Manufacturer and supplier of precast and prestressed concrete products	01032721	UK	100%	100%
Valerie Coltman Holdings Limited	Holding Company	06824310	UK	100%	100%

All entities have a place of business in the UK. The registered office address for all entities is the same as for the ultimate Parent Company, Leicester Road, Ibstock, Leicestershire, LE67 6HS.

All subsidiary undertakings are included in the consolidated financial statements. The proportion of the voting rights in the subsidiary undertakings held directly by the Parent Company do not differ from

the proportion of Ordinary Shares held. At 31 December 2025, the Parent Company does not have any shareholdings in the preference shares of subsidiary undertakings included in the Group.

1 Ibstock Building Products Ltd is owned directly by Ibstock Plc. All other companies are indirectly owned.

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Notes to the consolidated financial statements continued

30. Related party transactions

Balances and transactions between Ibstock Plc (the ultimate Parent) and its subsidiaries (listed in

Note 29), which are related parties, are eliminated on consolidation and are not disclosed in this note.

See Note 7 for details of Director and key management personnel remuneration.

There are no further material related party transactions nor any related party balances in either the

2025 or 2024 financial years.

31. Dividends paid and proposed

	31 December	31 December
	2025	2024
Cash flows from operating activities	£’000	£’000
Declared and paid during the year
Equity dividends on Ordinary Shares:
Final dividend for 2024: 2.5 pence (2023: 3.6 pence)	9,865	14,135
Interim dividend for 2025: 1.5 pence (2024: 1.5 pence)	5,920	5,896
	15,785	20,031
Proposed (not recognised as a liability as at 31 December)
Equity dividends on Ordinary Shares:
Final dividend for 2025: 1.5 pence (2024: 2.5 pence)	5,920	9,850
	5,920	9,850

At the beginning of 2026, the Directors proposed a final dividend in respect of the financial year

ended 31 December 2025 of 1.5 pence (2024: 2.5 pence) per Ordinary Share, which will distribute an

estimated £5.9 million (2024: £9.9 million) of shareholders’ funds. Subject to approval at the Annual

General Meeting, this will be paid on 8 May 2026, to shareholders on the register at the close of

business on 29 May 2026.

32. Post balance sheet events

Except for the proposed dividend (see Note 31), no further subsequent events requiring disclosure

or adjustment to these financial statements have been identified since the balance sheet date.

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Company balance sheet

(prepared in accordance with UK GAAP – FRS 102)

Company number: 09760850

31 December 31 December

2025 2024

As at 31 December 2025 Notes £’000 £’000

Fixed assets

Investments P4 628,665 628,604

Current assets

Debtors P5 10,169 9,671

Cash at bank and in hand 1,002 1,375

11,171 11,046

Creditors – amounts falling due within one year P6 (321,322) (294,093)

Net current liabilities (310,151) (283,047)

Total assets less current liabilities 318,514 345,557

Creditors – amounts falling due after more

than one year P7 (99,862) (99,427)

Net assets 218,652 246,130

Capital and reserves

Called-up share capital P9 4,096 4,096

Share premium 4,458 4,458

Own shares held (26,714) (27,9 07)

Profit and loss account 236,812 265,483

Total equity 218,652 246,130

The notes on pages 167 to 170 are an integral part of these financial statements. As permitted by

Section 408 of the Companies Act 2006, the Parent Company’s profit and loss account has not

been presented in these financial statements. The Parent Company’s loss after tax for the year was

£1 2.4 million (year ended 31 December 2024: loss of £1 0.9 million).

These financial statements were approved by the Board and authorised for issue on 4 March 2026.

They were signed on its behalf by:

Joe Hudson Richard Akers

Chief Executive Office Chair

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Company statement of changes in equity

Share Share Retained Own shares

capital premium earnings held Total equity

At 31 December 2025 Notes £’000 £’000 £’000 £’000 £’000

Balance as at 1 January 2025 4,096 4,458 265,483 (27,907) 246,130

Loss for the year – – (12,177) – (12 ,177)

Total comprehensive expense for the financial year – – (12,177) – (12,177)

Transactions with owners:

Share based payments – – 484 – 484

Equity dividends paid – – (15,785) – (15,785)

Issue of share capital on exercise of share options – – (1,193) 1,193 –

Transactions with owners – – (16,494) 1,193 (15,301)

Balance at 31 December 2025 4,096 4,458 236,812 (26,714) 218,652

Share Share Retained Own shares

capital premium earnings held Total equity

At 31 December 2024 Notes £’000 £’000 £’000 £’000 £’000

Balance as at 1 January 2024 4,096 4,458 297,799 (30,514) 275,839

Loss for the year – – (10,931) – (10,931)

Total comprehensive expense for the financial year – – (10,931) – (10,931)

Transactions with owners:

Share based payments – – 1,253 – 1,253

Equity dividends paid – – (20,031) – (20,031)

Issue of share capital on exercise of share options – – (2,607) 2,607 –

Transactions with owners – – (21,385) 2,607 (18,778)

Balance at 31 December 2024 4,096 4,458 265,483 (27,9 07) 246,130

The notes on pages 167 to 170 form an integral part of these financial statements.

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Notes to the Company financial statements

P1. Authorisation of financial statements

The Parent Company financial statements of Ibstock Plc (the ‘Company’) for the year ended

31December 2025 were authorised for issue by the Board of Directors on 4 March 2026 and the

balance sheet was signed on its behalf by J Hudson and R Akers.

Ibstock Plc is a public company limited by shares, which is incorporated and domiciled in England

whose shares are publicly traded. The Company’s Ordinary Shares are traded on the London Stock

Exchange. The registered office is Leicester Road, Ibstock, Leicestershire LE67 6HS and the Company

registration number is 09760850.

P2. Summary of significant accounting policies

The financial statements have been prepared in accordance with applicable accounting standards,

the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102)

and the Companies Act 2006. As a qualifying entity, as defined by FRS 102, the Company has

elected to adopt the reduced disclosure exemptions set out with paragraph 1.12 of FRS 102, as

described below.

These financial statements are prepared on a going concern basis, under the historical cost convention.

The Company has not disclosed the information required by regulation 5(1)(b) of the Companies

(Disclosure of Auditor’s Remuneration and Liability Limitation Agreements) Regulations 2008

astheGroup accounts of the Company are required to comply with regulation 5(1)(b) as if the

undertakings included in the consolidation were a single group.

Going concern

The Directors reviewed detailed cash flows and forecasts of financial performance and stress-tested

the projections. The forecasts include estimates of trading performance, operational and capital

expenditure and debt requirements within the period to 30 June 2027.

As the Group has financing arrangements in place, despite the net current liability position of

thecompany, the Company is forecast to be able to meet its liabilities as they fall due throughout

the review period. Therefore, having assessed the principal risks and all other relevant matters, the

Directors consider it appropriate to adopt the going concern basis of accounting in preparing the

financial statements of the Parent Company. The Group going concern assessment can be found

inNote 1 of the Group financial statements.

Fixed asset investments

Investments in subsidiaries are included at cost stated at the historical value at the time of investment

less any provisions for impairment and net of merger and Group reconstruction relief available.

Share based payments

The Company operates a number of equity-settled share-based compensation plans on behalf of

the Group. The fair value of the employee services received under such plans is capitalised as an

investment in the Company’s subsidiary until such time as intra-Group recharges are levied by the

Company to recover this cost from its subsidiaries. Upon recharge, the amounts recharged are

treated as a return of capital contribution and recorded as a credit to equity (up to the value of the

initial share-based payment treated as a capital contribution). Any recharge in excess of the capital

contribution is recognised within the Company income statement. The amount to be recognised

over the vesting period is determined by reference to the fair value of share-based payments. For

further details of share-based payments, see Note 26 of the Group financial statements.

Dividend distribution

Dividend distributions to Ibstock’s shareholders are recognised in the Company’s financial

statements in the periods in which the final dividends are approved in the Annual General Meeting,

or when paid in the case of an interim dividend.

Financial instruments

(i) Objectives and policies

The Company, in common with its Group subsidiaries, must comply with the Group’s finance

guidelines that set out the principles and framework for managing Group-wide finances. Further

information on the Group’s policies and procedures is available in the Group financial statements.

The Company does not enter into speculative treasury arrangements.

(ii) Foreign exchange, credit, liquidity and financial risks

Foreign exchange risk management

The Company primarily transacts in Sterling and therefore exposure to foreign exchange risk is

regarded as low.

Credit risk management

For the Company, this risk arises from cash and cash equivalents and deposits with banks. This is

managed on a Group basis and there are a number of initiatives underway to mitigate this risk.

These include concentrating activities with a group of banks that have strong, independently

verified credit ratings. For each bank, individual risk limits are set based on its financial position,

credit ratings, past experience and other factors.

Liquidity planning, trends and risks

The Company has sufficient committed borrowing facilities to meet planned liquidity needs with

headroom, through facilities provided by the Group.

The Company has adopted IAS 39 for recognition and measurement of financial instruments.

(iii) Financial assets

Financial assets, including trade and other receivables, loans to fellow Group companies and cash

and bank balances, are initially recognised at fair value.

Such assets are subsequently carried at amortised cost using the effective interest method.

(iv) Financial liabilities

Financial liabilities, including trade and other payables and loans from fellow Group companies,

areinitially recognised at fair value.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate

method in accordance with IAS 39.

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Notes to the Company financial statements continued

P2. Summary of significant accounting policies continued

Taxation

Taxation expense for the year comprises current and deferred tax recognised in the reporting year.

Tax is recognised in the profit and loss account, except to the extent that it relates to items

recognised in other comprehensive income or directly in equity. In this case tax is also recognised in

other comprehensive income or directly in equity respectively.

During the ordinary course of business, there are transactions and calculations for which the

ultimate tax determination may be uncertain. The calculation of the tax charge therefore

necessarily involves a degree of estimation and judgement. The tax liabilities are based on

estimates of whether additional taxes will be due and tax assets are recognised on the basis of

probable future recoverability. This requires management to exercise judgement based on its

interpretation of tax laws and the likelihood of settlement of tax liabilities or recoverability of tax

assets. To the extent that the final outcome differs from the estimates made, tax adjustments may

be required which could have an impact on the tax charge and profit for the period in which such a

determination is made.

(i) Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior

years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively

enacted by the year end.

Management periodically evaluates positions taken in tax returns with respect to situations in which

applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on

the basis of amounts expected to be paid to the tax authorities.

(ii) Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total

comprehensive income as stated in the financial statements. These timing differences arise from

the inclusion of income and expenses in tax assessments in periods different from those in which

they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses and

other deferred tax assets are only recognised when it is probable that they will be recovered against

the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted

by the year end and that are expected to apply to the reversal of the timing differences.

Share capital

Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new

Ordinary Shares or options are shown in equity as a deduction, from the proceeds.

Related parties

The Group discloses transactions with related parties which are not wholly owned within the same

Group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of

the Directors, separate disclosure is necessary to understand the effect of the transactions on the

Group financial statements.

Disclosure exemptions

In preparing the Parent Company financial statements, the Company has elected to adopt the

reduced disclosure exemptions set out in paragraph 1.12 of FRS 102, because the Company prepares

Group consolidated financial statements, as described below:

(a) Under FRS 102 (Section 1.12(b)), the Parent Company is exempt from the requirements to

prepare a cash flow statement on the grounds that its cash flows are included within the

Ibstock Plc Group consolidated financial statements.

(b) The Parent Company is a qualifying entity and has taken advantage of the exemption from

disclosing key management compensation (other than Directors’ emoluments) under FRS 102

(Section 1.12(e)), as it is a Parent entity whose separate financial statements are presented

alongside the consolidated financial statements, which contain the requisite equivalent disclosures.

disclosing certain financial instrument disclosures under FRS 102 (Section 1.12(c)), as it is a

Parent entity whose separate financial statements are presented alongside the consolidated

financial statements, which contain the requisite equivalent disclosures.

(d) The Company has elected to avail itself of the disclosure exemption within FRS 102 (Section

1.12(d)) in relation to certain share based payment disclosure requirements as it is a Parent

entity whose separate financial statements are presented alongside the consolidated financial

statements, which contain the requisite equivalent disclosures.

(e) The Company has taken advantage of the reduced disclosure exemption under FRS 102

(Section 1.12(a)) and is not required to follow the requirements of paragraph 4.12(a)(iv) of FRS

102 and as such only discloses a reconciliation of shares outstanding between the beginning

and end of the year and not the prior year.

In addition, the Company has taken the exemption within Section 33 of FRS 102 from disclosing

intra-Group transactions with wholly owned subsidiaries.

Critical accounting judgements and estimation uncertainty

In applying the Company’s accounting policies, as described above, the Directors are required to

make judgements (other than those involving estimations) that have a significant impact on the

amounts recognised and to make estimates and assumptions that affect the reported amounts of

assets, liabilities, income and expenses. Due to the inherent uncertainty in making these critical

judgements and estimates, actual outcomes could be different.

There are no critical accounting judgements or key estimation uncertainties in applying the

Company’s accounting policies in current and prior year.

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P3. Employee information

The Company has no employees. Non-Executive Directors of the Company are employed under

letters of appointment. Full details of Executive and Non-Executive remuneration is disclosed in the

Annual Report on Remuneration on pages 91 to 110. For further details of Directors’ remuneration,

refer to Note 7 of the Group financial statements.

P4. Fixed asset investments

Investment in

subsidiary

undertakings

Cost £’000

At 1 January 2024 628,049

Additions – fair value of share incentives issued to Group employees 555

At 31 December 2024 628,604

Additions – fair value of share incentives issued to Group employees 61

At 31 December 2025 628,665

The Company holds 100% of the issued share capital of Ibstock Building Products Limited.

P5. Debtors

31 December 31 December

2025 2024

£’000 £’000

Amounts owed by subsidiary undertakings 6,587 7,318

Corporation tax assets 2,505 1,651

Deferred tax asset 44 270

Prepayments and other debtors 1,033 432

10,169 9,671

Amounts owed by subsidiary undertakings are unsecured, repayable on demand and interest free.

P6. Creditors – amounts falling due within one year

31 December 31 December

2025 2024

£’000 £’000

Trade creditors 717 537

Amounts owed to subsidiary undertakings 275,329 258,257

Borrowings 41,152 31,425

Accruals and other creditors 4,124 3,873

321,322 294,092

Amounts owed to subsidiary undertakings are unsecured, repayable on demand and interest free.

The Group has a cash pooling arrangement with its transactional bank.

P7. Creditors – amounts falling due after more than one year

31 December 31 December

2025 2024

£’000 £’000

Borrowings 99,862 99,427

99,862 99,427

In November 2021, the Company issued £100 million of private placement notes to 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%).

In 2025, the Company renewed the £125 million Revolving Credit Facility (RCF) provided by a

syndicate of four banks for an initial four year period, with a one year extension option. At

31December 2025, the Group had drawn £42.0 million (2024: £31.0 million) under this facility.

Further details of the Private Placement and RCF are provided in Note 19 of the Group

financialstatements.

The carrying value of financial liabilities have been assessed as materially in line with their fair

values, with the exception of £100 million of private placement notes. The fair value of these

borrowings has been assessed as £90.1 million (2024: £87.8 million).

No security is currently provided over the Company’s borrowings.

P8. Financial instruments

The Company has the following financial instruments:

Loans and receivables

31 December 31 December

2025 2024

£’000 £’000

Financial assets that are debt instruments measured at amortised

cost:

Amounts owed by subsidiary undertakings 6,587 7,318

Cash and bank balances 1,002 1,375

7,5 89 8,693

Notes to the Company financial statements continued

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P8. Financial instruments continued

Loans and payables

31 December 31 December

2025 2024

£’000 £’000

Financial liabilities measured at amortised cost:

Trade creditors 717 537

Amounts owed to subsidiary undertakings 275,329 258,257

Borrowings 141,014 130,852

Accruals and other creditors 4,124 3,874

421,184 393,520

In the current and prior year there are no material differences between the fair values and the book

values stated above with the exception of £100 million of private placement notes within borrowing.

The fair value of these borrowings is assessed as £90.1 million (2024: £87.8 million), which was

determined using discounted cash flows based on observable market data.

P9. Called-up share capital

capital

Number of shares £’000

Issued, called-up and fully paid:

At 1 January 2025 and

31December 2025 Ordinary Shares of £0.01 each 409,631,594 4,096

There was no share capital movement in the current and prior year.

P10. Contingent liabilities

The Company has guaranteed all Group bank borrowings as detailed in Note 19 of the Group

financial statements. As part of the Group’s joint and several liability, the Company is a party to the

guarantee of the Group’s VAT liability.

P11. Related party transactions

The Company is exempt from disclosing related party transactions with other companies that are

wholly owned within the Group. See Note 29 of the Group financial statements.

The ultimate Parent Company and the smallest and largest group to consolidate these financial

statements is Ibstock Plc.

Share awards to key management personnel resulted in an amount of £0.2 million in the year ended

31 December 2025 (2024: £0.6 million), which has been taken to the fixed asset investment. See

Note 26 of the Group financial statements and the Directors’ Remuneration Report on pages 91 to

110 for further details of share-based payments.

P12. Post balance sheet events

A final dividend of 1.5 pence (2024: 2.5 pence) per Ordinary share is proposed in respect of the

financial year ended 31 December 2025. See Note 31 of the Group financial statements.

See Note 32 of the Group financial statements for details of other post balance sheet events.

Notes to the Company financial statements continued

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Year ended 31 December

Results summary 2021 2022 2023 2024 2025

Continuing operations

Revenue 408,656 512,886 405,839 366,207 372,104

Adjusted EBITDA

103,053 139,667 107, 357 79,350 71,044

Exceptional items

impacting EBITDA 5,230 6,278 (30,762) (11,720) (19,478)

Depreciation and amortisation pre fair value uplift (28,217) (26,392) (29,314) (29,778) (31,296)

Incremental depreciation and amortisation following fair value uplift (10,132) (12,126) (12,250) (10,779) (10,236)

Operating profit 69,934 107,427 35,031 27,073 10,034

Net finance costs (4,992) (2,663) (4,964) (6,393) (9,138)

Profit before taxation 64,942 104,764 30,067 20,680 896

Taxation (33,129) (17,8 84) (9,007) (5,588) 2,178

Profit from continuing operations 31,813 86,880 21,060 15,092 3,074

Profit 31,813 86,880 21,060 15,092 3,074

Profit attributable to owners of the Company 31,813 86,908 21,060 15,092 3,074

Profit attributable to non-controlling interest – (28) – – –

1 Alternative performance measures are described in Note 3 and exceptional items are described in Note 5 to the consolidated financialstatements.

Group five-year summary

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At 31 December

Employment of capital 2021 2022 2023 2024 2025

Goodwill and intangible assets 94,625 90,242 82,017 73,950 66,447

Property, plant and equipment 375,800 409,091 440,400 462,504 455,147

Right-of-use assets 25,114 31,478 39,831 28,363 23,292

Non-current assets 495,539 530,811 562,248 564, 817 544,886

Inventories 72,821 94,275 119,189 124,819 137,448

Receivables 64,756 65,935 37,919 43,815 32,273

Current tax recoverable 3,199 1,717 1,171 1,323 3,186

Assets held for sale 875 – – 200 –

Current assets 141,651 161,927 158,279 170,157 172,907

Payables (103,132) (120,003) (80,526) (88,853) (89,482)

Lease liabilities (27,184) (33,104) (43,833) (35,082) (29,510)

Other liabilities excluding debt (102,527) (93,261) (105,493) (101,977) (102,282)

Net assets excluding pension and debt 404,347 446,370 490,675 509,062 496,519

Net debt

(38,872) (45,922) (100,616) (121,560) (120,043)

Pension 57,754 15,194 9,832 7, 839 5,984

Derivative financial instruments – 567 (24) (78) –

Total net assets 423,229 416,209 399,867 395,263 382,460

Called-up share capital 4,096 4,096 4,096 4,096 4,096

Reserves 419,133 412,062 395,771 391,167 378,364

Equity attributable to owners of the Company 423,229 416,158 399,867 395,263 382,460

Equity attributable to non-controlling interest – 51 – – –

Total equity 423,229 416,209 399,867 395,263 382,460

1 Alternative performance measures are described in Note 3 to the consolidated financial statements.

Group five-year summary continued

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At 31 December

Business ratios 2021 2022 2023 2024 2025

Adjusted EBITDA

margin 25.2% 27.2% 26.5% 21.7% 19.1%

Interest cover (times) 21x 51x 29x 6x 6x

Net debt to adjusted EBITDA

0.41x 0.35x 1.06x 1.81x 2.03x

Return on capital employed

15.8% 23.5% 13.4% 7.5% 5.8%

Adjusted operating cash flow

(£m) 76 108 50 56 35

Capital expenditure (£m) (25) (58) (66) (45) (45)

Adjusted free cash flow

1,2

(£m) 51 50 (16) 11 (10)

Statutory basic earnings per share 7.8 p 21.4p 5.4p 3.8p 0.8p

Adjusted basic earnings per share

13.9p 22.7p 13.9p 7.7p 5.7p

Interim dividend per share 2.5p 3.3p 3.4p 1.5p 1.5p

Final dividend per share 5.0p 5.5p 3.6p 2.5p 1.5p

Total dividend per share 7.5p 8.8p 7.0p 4.0p 3.0p

Closing share price 204p 154p 152p 174p 140p

Closing market capitalisation (£m) 834.8 630.8 594.0 712.7 544.8

1 Alternative performance measures are described in Note 3 to the consolidated financial statements.

2 Impacting retained earnings.

Group five-year summary continued

Cautionary Statement

This Annual Report and Accounts has been prepared for, and only for, the members of the Company,

as a body, and no other persons. The Company, its Directors, employees, agents or advisers do not

accept or assume responsibility to any other person to whom this document is shown or into whose

hands it may come and any such responsibility or liability is expressly disclaimed. By their nature, the

statements concerning the risks and uncertainties facing the Group in this Annual Report and

Accounts involve uncertainty, since future events and circumstances can cause results and

developments to differ materially from those anticipated. The forward-looking statements reflect

knowledge and information available at the date of preparation of this Annual Report and Accounts

and the Company undertakes no obligation to update these forward-looking statements. Nothing in

this Annual Report and Accounts should be construed as a profit forecast.

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Sustainability and Climate Change ReportingSustainability and Climate Change Reporting

Sustainability

Reporting Data

Streamlined Energy and Carbon Reporting (‘SECR’) disclosure

2019 2020 2021 2022 2023 2024 2025

Total Scope 1 CO

emissions tCO

e 349,200 223,229 299,698 303,173 237, 032 190,577 220,716

Total Scope 1 CO

emissions from combustion of gas tCO

e 222,359 145,331 196,622 198,580 153,336 123,546 146,412

Total Scope 1 CO

emissions from combustion of other fuels tCO

e 17,978 7, 223 5,736 4,508 7, 210 5,303 5,681

Total Scope 1 CO

emissions from process materials tCO

e 108,886 70,676 97,340 100,084 76,485 60,638 68,623

Total gas used per annum MWh 1,230,000 780,000 1,050,000 1,080,000 804,915 636,115 798,812

Total Scope 2 CO

emissions (location-based) tCO

e 28,429 16,429 19,912 17,514 14,799 12,881 14,287

Total Scope 2 CO

emissions (market-based) tCO

e 28,429 16,429 – – 787 942 929

Total purchased electricity used per annum MWh 110,507 70,762.89 93,778.99 87,439.18 71,623 62,379 74 ,192

Total solar-generated electricity used per annum MWh – 2 2,480 4,160 4,019 4,743 4,729

Total Scope 1 and 2 CO

emissions (market-based) tCO

e 377,629 239,658 299,698 303,173 237, 819 191,518 221,645

Intensity ratio tonnes of CO

per tonne of production tCO

e/tonne 0.159 0.16 0.141 0.145 0.151 0.148 0.138

% reduction in absolute Scope 1 and 2 CO

relative to 2019 baseline % – – – 20% 37% 49% 41%

Total Scope 3 tonnes of CO

tCO

e – – – 157,95 0 107,915 107,010 160,912

1 Of the 41% reduction, 25% is permanent carbon reduction on 2019 baseline, 16% is temporary production volume decrease which we forecast to reverse by 2030.

All carbon calculations are in line with Greenhouse Gas Protocols.

Market-based Scope 2 emissions are used to calculate the carbon intensity ratio.

We use a small amount of gas, equating to 840 tonnes CO

from landfill gas produced at one of our sites, with 88.5 tonnes CO

from Weeford site. The rest of our electricity is procured from the grid through

a REGO backed green tariff.

For reporting purposes, we define our organisational boundary on an operational control basis, and our Scope 1 and 2 emissions and other sustainability metrics are reported on this basis.

All emissions and energy are consumed in the UK.

In this section we have set out all key sustainability data required

forreporting purposes. In addition to the summaries presented here,

wealso provide disclosures in our separate Sustainability Report.

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Ibstock Plc | Annual Report and Accounts 2025

Sustainability and Climate Change Reporting continued

Group Scope 3 emissions categories reported

GHG Protocol Scope 3 emissions category

Carbon emissions

(tonnes of CO

e) Included or excluded

Category 1 – Purchased goods and services 111,151 Included (hybrid-spend and activity method)

Category 2 – Capital goods 2,921 Included (spend-based method)

Category 3 – Fuel- and energy-related activities 28,665 Included (average data method)

Category 4 – Upstream transportation and distribution 14,988 Included (spend-based method)

Category 5 – Waste generated in operations 201 Included (average data method)

Category 6 – Business travel 1,007 Included (hybrid approach)

Category 7 – Employee commuting 329 Included (average data method; modelled)

Category 8 – Upstream leased assets 0 Excluded: Operation of Ibstock’s leased fleet and buildings are included in Scope 1 and 2.

Category 9 – Downstream transport and distribution – Excluded: Limited data availability.

Category 10 – Processing of sold products 0 Excluded: Ibstock’s products are not processed further before use by end customers.

Category 11 – Use of sold products 0 Excluded: Ibstock’s products do not lead to significant direct GHG emissions during their use by end customers. Further,

attributing building energy usage to Ibstock’s products presents a significant data challenge and would likely be immaterial.

Category 12 – End-of-life treatment of sold products 1,649 Included (average data method)

Category 13 – Downstream leased assets 0 Excluded: Ibstock does not lease any assets to third parties.

Category 14 – Franchises 0 Excluded: Ibstock does not have any business franchises.

Category 15 – Investments 0 Excluded: Ibstock does not hold any significant investments in other companies or assets beyond those included in this inventory.

Key performance indicators

Topic KPI Measure Target 2019 2020 2021 2022 2023 2024 2025

Carbon % absolute carbon reduction (Scope 1 and 2) relativeto

2019baseline

% 40% by 2030 20% 37% 49% 41%

Carbon Intensity ratio tonnes of CO

per tonne of production tCO

e/t 0.159 0.160 0.141 0.145 0.151 0.148 0.138

Water % reduction in mains water use (relative to 2019 baseline) % 34% 21% 49% 28% 33% 18%

Waste % general waste to landfill % Zero by 2025 64.0% 13.0% 2.4% 5.0% 4 .6% 2 .1%

New and sustainable

products

% of sales turnover from new and sustainable products % 11.5% 11.7% 13.0% 13.0% 10.8% 22% 25%

Health and safety % year on year reduction in Total Injury Frequency Rate % 5% 13% +17%

Earn and Learn positions % of employees in Earn and Learn positions % 10% by 2030 7.5% 6.9% 7.4% 7.2%

Diversity % of women in senior leadership positions % 40% by 2027 27% 35% 34% 32%

Diversity % of senior leaders identifying as ethnically diverse % 20% by 2030 7% 15%

1 Of the 41% reduction, 25% is permanent carbon reduction on 2019 baseline, 16% is temporary production volume decrease which we forecast to reverse by 2030.

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Sustainability and Climate Change Reporting continued

Sustainability

Performance Data

The following table covers our wider sustainability metrics, which are aligned where

possible to the SASB disclosure for construction materials. We will continue to review

this data suite on an ongoing basis for future reporting periods.

Topic Metric 2019 2020 2021 2022 2023 2024 2025

Scope 1 CO

emissions Tonnes of CO

e combustion of fuel 349,200 223,229 299,698 303,173 237,032 190,577 220,716

Scope 2 CO

emissions

(location-based)

Tonnes of CO

e from electricity consumed if power was

purchased from the grid applying averaged emissions

28,429 16,429 19,912 17, 514 14,799 12,881 14,287

Scope 2 CO

emissions

(market-based)

Tonnes of CO

e from electricity consumed purchased from

renewable sources

28,429 16,429 – – 787 942 929

Scope 3 tonnes of CO

Tonnes of CO

e N/A N/A N/A 157,950 107,915 107,010 160,912

Company cars Hybrid or electric vehicles as % of total fleet N/A N/A 45% 55% 74% 87% 86%

Company mobile fleet Electric vehicles as % of total mobile plant fleet N/A N/A N/A N/A 11% 16% 27%

Water intensity ratio M

mains water use per tonne of production 0.105 0.110 0.092 0.072 0.113 0.125 0.128

Mains water M

mains water use per annum 249,854 165,983 197,8 83 127,544 179,013 166,187 204,918

Non-mains water M

non-mains water use per annum – – – – 65,531 50,437 51,881

Total water M

total water use per annum 963,387 1,000,815 1,160,443 779,935 244,544 216,624 256,798

Waste sent off-site Tonnes of waste sent off-site 6,570 5,801 3,490 5,945 6,524 4,958 4,514

Waste diverted from landfill Tonnes of waste diverted from landfill 3,565 3,709 3,034 5,605 6,370 4.795 4,379

Hazardous waste sent to landfill Tonnes of hazardous waste sent to landfill 1,126 204 178 48 50 73 27

Non-hazardous waste sent to

landfill

Tonnes of non-hazardous waste sent to landfill 1.879 1.888 278 143 105 90 108

General waste sent to landfill Tonnes of general waste sent to landfill 1,879 1,888 278 143 57 42 21

Total waste sent to landfill Total waste sent to landfill – – – – 154 163 135

Total plastic packaging Total tonnes of plastic packaging 1,887 998 1,476 1,447 1,492 814 799

Plastic packaging intensity ratio Kg of plastic per tonne of production – – – – – – 0.5

New and sustainable products % of sales turnover from new and sustainable products – 12% 13% 13% 11% 22% 25%

Customer referral rating Customers likely to recommend Ibstock (score out of 10) – – – – – 7.58 7.93

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Topic Metric 2019 2020 2021 2022 2023 2024 2025

Lost time incident frequency rate Number of lost time injuries for every one million hours worked 3.4 2.2 2.1 1.47 1.51 1.76 2.05

Total Injury Frequency Rate

Total number of injuries for every one million hours worked – – – 63.2 60.1 31.4 36.6

Employee deaths Number of work-related employee deaths 0 0 0 0 0 0 0

Contractor deaths Number of work-related contractor deaths 0 0 0 0 0 0 0

Employee diversity – gender % of all employees that are female – 15.7% 15% 16% 16.7% 17% 17. 3%

Board diversity – gender % of the Board that are female – 28.5% 37.5% 37. 5% 37.5% 37.5% 42.9%

Senior leader diversity – gender % of senior leaders that are female – 18.5% 19% 27% 35% 34% 32%

Apprentice diversity – gender % of apprentice intake that are females – – – – – 29% 7%

Employee diversity – ethnicity % of all employees identifying as ethnically diverse – – – – – 5% 5%

Board diversity – ethnicity % of the Board identifying as ethnically diverse – – – – – 12.5% 14.3%

Senior leader diversity – ethnicity % of senior leaders identifying as ethnically diverse – – – – – 7% 15%

Apprentice diversity – ethnicity % of apprentice intake identifying as ethnically diverse – – – – – 11% 7%

Employee population Number of employees 2,350 2,064 2,119 2,293 1,896 1,947 1,944

Earn and Learn positions % of employees in formal Earn and Learn training – – – 7.5% 6.9% 7.4% 7.2 %

Apprentices Number of apprentices – 35 38 47 51 54 68

Employee engagement Best companies score % – – 61.2% – 65.0% – 63.0%

Charitable contributions Bricks donated to colleges/charities – – 83,094 140,000 300,000 311,000 >440,000

1 2024 TIFR figure restated from 52.2 to 31.4 due to calculation incorporating additional data points in 2024.

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Sustainability and Climate Change Reporting continued

Task Force on Climate-related

Financial Disclosures

Ibstock has a long-standing commitment to responsible business delivery, and climate

impact is a key part of the Board’s strategy discussions. Building on this commitment,

we published our ESG 2030 Strategy (the ‘Strategy’) in 2022.

This focuses on three strategic pillars:

@ Addressing Climate Change

@ Improving Lives

@ Manufacturing Materials for Life

The Strategy includes an ambitious target

toreduce our absolute Scope 1 and 2 carbon

emissions by 40% by 2030 against a

2019baseline.

The Strategy was reviewed during 2025

applying outputs from a single materiality

review and the Board considers that the

ambitions set in this document remain our

short-term priorities for managing climate-

related risk.

The climate-related financial disclosures made

by Ibstock comply with the Task Force on

Climate-related Financial Disclosures (‘TCFD’)

recommendations as required by the UKLA

Listing Rule 6.6.6R (8); and the requirements of

the Companies Act 2006 as amended by the

Companies (Strategic Report) (Climate-related

Financial Disclosure) Regulations 2022.

Ibstock disclosures are fully consistent with all

11 of theTCFD disclosure recommendations

asset out below:

Governance

Disclose the organisation’s governance around

climate-related risks and opportunities.

Pages179 to 180.

a. Describe the Board’s oversight of climate-

related risks and opportunities.

b. Describe management’s role in assessing

andmanaging climate-related risks

andopportunities.

Strategy

Disclose the actual and potential impacts of

climate-related risks and opportunities on the

organisation’s businesses, strategy and financial

planning where such information is material.

Pages 181 to 187.

a. Describe the climate-related risks and

opportunities the organisation has identified

over the short, medium and long term.

b. Describe the impact of climate-related risks

and opportunities on the organisation’s

businesses, strategy and financial planning.

c. Describe the resilience of the organisation’s

strategy, taking into consideration different

climate-related scenarios, including a 2°C

orlower scenario.

Risk management

Disclose how the organisation identifies,

assesses and manages climate-related risks.

Page 188.

a. Describe the organisation’s processes for

identifying and assessing climate-related risks.

b. Describe the organisation’s processes for

managing climate-related risks.

c. Describe how processes for identifying,

assessing and managing climate-related risks

are integrated into the organisation’s overall

risk management.

Metrics and targets

Disclose the metrics and targets used to

assessand manage relevant climate-related

risks and opportunities, where such information

is material. Pages 189 to 191.

a. Disclose the metrics used by the organisation

to assess climate-related risks and

opportunities in line with its strategy and risk

management process.

b. Disclose Scope 1, Scope 2 and, if appropriate,

Scope 3 greenhouse gas (‘GHG’) emissions

and the related risks.

c. Describe the targets used by the organisation

to manage climate-related risks and

opportunities and performance against targets.

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Task Force on Climate-related Financial Disclosures continued

1. Governance

a. Describe the Board’s oversight of climate-related risks and opportunities.

Ibstock’s Board has ultimate oversight of climate-related risks and opportunities. This page shows the full governance structure showing how the consideration of climate-related issues is integrated

withingovernance processes. The Board delegates specific climate-related matters to its Committees and Executive Committee (‘ExCo’).

Board Committees and climate change responsibilities

Responsibilities related to climate change Examples Skills and competencies

The Board had 10 meetings in 2025 Role and responsibilities page 70

The Board has ultimate oversight for the long-term strategy, including oversight of climate

change-related risks and opportunities and the setting of performance objectives.

@ Considering climate-related issues as a fundamental part when planning Group strategy,

approving annual budgets and business plans, making acquisition and divestiture

decisions, and overseeing capital expenditure.

@ Considering climate-related issues as part of the discussions on risk management and its

principal risks and uncertainties.

@ Overseeing progress against our sustainability ambitions, which align to its risk mitigation

plans to address climate-related issues.

When setting the 2026 budget and strategic plan,

the Board considered the requirements and

sensitivities for mitigating transitional and physical

climate change risks.

Climate and carbon impact is considered as part of

the Board’s decision-making.

As per the skills matrix shown on page 56 the Board

has sufficient skills and competencies in strategy,

sustainability and financial planning.

The Sustainability Committee met four times during 2025 Role and responsibilities page 81

@ Overseeing, challenging and monitoring the Strategy implementation.

@ Reviewing performance against key performance indicators (‘KPIs’) and targets,

including carbon reduction.

@ Overseeing and monitoring of risks and opportunities associated with climate change.

@ Informing the Board on mechanisms to engage wider stakeholders with regard to sustainability.

Members of the Sustainability Committee inform all other Committees about climate-

related issues as key topics are identified or discussed.

At each meeting, the Sustainability Committee

considers a horizon scanning report produced by RSM

UK Consulting LLP (‘RSM’), including emerging

climate transition risks.

The Committee scrutinised the use of the carbon

transition model to support decisions and monitored

continued improvements in regular reporting of

climate-related metrics.

Chaired by Claire Hawkings, who has extensive

experience in sustainability.

RSM provides expert technical advice to

theCommittee.

Training for the Sustainability Committee delivered

by RSM, including carbon trading and Emissions

Trading Schemes (‘ETS’).

The Audit Committee met four times during 2025 Role and responsibilities page 84

@ Reviews and makes recommendations on risk management and controls to the Board.

@ Oversees the internal controls including carbon, and financial statement review

ofdisclosures.

The Audit Committee received a detailed update on

material controls including climate change and carbon.

Consideration of climate impact on accounting

judgements and disclosures, e.g. impairment and

useful economic lives of assets.

The Audit Committee has sufficient skills and

competencies in audit, controls and strategy.

Boardskills matrix on page 56.

The Remuneration Committee met four times during 2025 Role and responsibilities page 91

@ Aligns LTIP performance to sustainability-related KPIs. In setting the LTIP performance targets and

underpin, the Remuneration Committee considers

the alignment to the Strategy.

The Remuneration Committee has sufficient skills

and competencies in Executive remuneration and

sustainability. Board skills matrix on page 56.

The Executive Committee (‘ExCo’) met nine times in 2025 Role and responsibilities page 61

@ Implements and delivers the Strategy. During day to day strategic and operational

decisions, the ExCo considers the alignment

totheStrategy.

The ExCo has sufficient strategic, operational and

management experience to implement and execute

the carbon transition for Ibstock.

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Task Force on Climate-related Financial Disclosures continued

1. Governance continued

Governance of carbon reduction

Our progress on the development of our Carbon Transition Plan is detailed on page 43 and 44. The Sustainability Committee monitors and oversees the progress against the goals and targets for

addressing climate-related issues at each meeting by reviewing the Sustainability KPIs which include carbon reduction.

The Committee considers, challenges and recommends changes to the development of the Carbon Transition Plan to the Board for its approval. The Board has oversight of the execution of carbon

reduction, including approval of climate-related targets and development of the Carbon Transition Plan.

b. Describe management’s role in assessing and managing climate-related risks and opportunities

The CEO is responsible for assessing and managing climate-related risks and opportunities and is supported by the ExCo to implement the Strategy. The Managing Director – Clay and Concrete is

theExecutive-level sponsor for Addressing Climate Change and the Director – Innovation and Growth is the Executive-level sponsor for Manufacturing Materials for Life. The sustainability update is on

page39. The ExCo is supported by a dedicated Sustainability team, with subject matter experts to support other business units, led by Nick Giles, Group Company Secretary and Compliance Officer.

TheSustainability team supports the upskilling of other roles and departments, recognising that all employees have a part to play in the implementation of sustainability. For example, the Sustainability

team supports Factory Managers with understanding the carbon emissions from the factory and opportunities to improve carbon reduction. Previously assessing and managing risk was governed through

the Net Zero Working Group but this is now run through existing team structures including operational, innovation and technical teams. The reporting structure for management is detailed below. The

cross-functional TCFD Working Group, which includes members from the Sustainability, SHEQ and Finance teams, defines the approach for identifying and assessing climate-related risks. This defined the

risk gradings, detailed on pages 181 to 183, to assess the impact of climate-related risks and opportunities. Please see page 48 for the Group’s risk management process. The ExCo owns material climate-

related risks and opportunities to ensure there is clear ownership for mitigations. The Sustainability team provides monthly updates to the ExCo, and quarterly updates to the Sustainability Committee.

Site energy monitoring, targets and champions

In 2025, all of Ibstock’s operational sites maintained ISO 50001 for energy management (with exception of Coltman and Atlas, which will be accredited in 2026) and legal compliance with ESOS.

Sitesareusing the energy management system to continuously monitor and reduce energy consumption, improving their operational efficiency and reducing their carbon impact.

The Energy Manager works across the Group to help the teams identify and quantify operational efficiency with the site technical managers to initiate changes to optimise processes. All sites using the

system have access to half hourly electricity data, energy action plans, targets and an energy champion.

Management of workstreams assessing or managing climate-related risks

Team/working group Area of responsibility Group lead 2025 example of progress

Sustainability team @ Owns the evolution of the carbon reduction model and support

towider teams on integrating actions into business as usual.

@ Owns data processing of carbon.

Head of ESG Improved data quality and controls – see pages 39 to 46.

Operations team @ Implements energy action plans and carbon reduction projects

toachieve targets.

Operations Director Replacement of diesel pump with electric pump at

Leicester quarry – see page 42.

Innovation team @ Develops new and evolves existing products with lower carbon

impacts to meet customer need.

Head of Innovation Continued roll out of lower carbon cements across the

concrete product ranges

Technical team @ Alternative fuels project development and research.

@ Ceramics and cement technology advancement projects.

Technical Director On-site Green Hydrogen project shortlisted in

Government Hydrogen Allocation Round 2 –

seepage42.

TCFD Working Group @ Identifies, assesses and manages climate-related risks

andopportunities.

@ Informs and updates functions of the site climate risks.

Group Financial Controller

Risks and opportunities reviewed and updated.

1 The Group Financial Controller took on the role of Interim Chief Financial Officer as of October 2025.

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Task Force on Climate-related Financial Disclosures continued

2. Strategy

a. Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term

Material risks and opportunities are evaluated by considering their potential impact, financial or reputational, together with their likelihood as part of enterprise risk management process. Please see

page48 for further details of the risk assessment process.

Our time horizon and impact definitions are shown below, detailing how these align to the organisation. The scenario analysis supports our decision-making processes on strategy, capital allocation and

costs in the short-term horizon. Beyond this time period as would be expected, the scenario analysis has less reliable internal and external data with less certainty around the impact of climate-related risks

and opportunities, as this is greatly impacted by external factors and dependencies such as the pace and effectiveness of the transition to a lower-carbon economy – see pages 43 to 44.

Time horizons considered in climate risk assessment

Short term – to 2030 Medium term – 2031 to 2040 Long term – 2041 to 2050

Aligns to ESG 2030 Strategy Aligns to medium- to long-term strategy decisions, and achieving

net zero Scope 1 and 2

Aligns to longer-term climate reduction targets

Impact on Adjusted EBITDA over time

Low Medium High

<5% 5% – 15% >15%

The thresholds for quantifying risks based against our strategic and long-term financial forecasts and align to the risk management processes.

Our climate risks and opportunities

The following material risks have been identified through considering the impact across the business value chain. All product types, business functions, customer segments and suppliers have been included

in the assessment. Our operations experience similar climate risks and opportunities. We have referenced where risks are specific to one division or sector. Where climate-related financial risks are material, if

unmitigated, these have the potential to impact Group Adjusted EBITDA

by over 5%.

Climate risks

Climate-related financial risk Description Impact grading

Scenario with

greatest impact

Link to metrics

and targets Expected financial impact

CCR1: Increased prices of carbon

credits or reductions or removal in

the number of ‘free’ allowances.

Transition, policy and legal

@ Since our Clay operations are part of the UK Emissions

Trading Scheme (‘UK ETS’), the rising costs of carbon

credits and the reduction in ‘free’ allowances are likely

toincrease costs if internal carbon reduction initiatives

are unsuccessful.

High <2°C Medium

and long term

Carbon

emissions

Internal carbon

price

Increased costs of carbon credits if carbon

reduction initiatives are unsuccessful for our

Clay division and the price of carbon credits

increases. The allowances for UK ETS are

aligned to a net zero consistent cap from 2026.

CCR2: The availability of, and

ability to transfer to, new energy

technologies due to a lack of or

failed investments.

Transition, technology

@ Reliant on unproven technology to transition to net zero,

e.g. carbon capture and storage.

@ Transitioning to new energy technologies may require

significant investment and skills and experience

notavailable.

@ Government support will be required to make the

transition across the estate commercially viable, e.g.

hydrogen gas pipelines.

High >4.3°C Medium

and long term

Planned for

2026

Increased capital costs to transition to new

energy technologies including alternative fuels

and carbon capture.

Increased research and developments (‘R&D’)

costs to position business to respond to changes

in technology.

Increased carbon costs if transition is slowed.

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Climate-related financial risk Description Impact grading

Scenario with

greatest impact

Link to metrics

and targets Expected financial impact

CCR3: Transition to new building

technologies and approaches

redefining the type and nature of

materials required.

Transition,market

@ Customers switching to alternative products with

lowerembodied carbon due to regulations or

carbonreduction targets.

@ Changes in revenue mix from traditional brick and

concrete product lines to products used within Modern

Methods of Construction (‘MMC’).

@ Changes to supply chain may result in scarcity of

certainraw materials, e.g. body fuels.

High >4.3°C Short,

medium and

long term

Carbon

emissions

New product

development

Climate-related

opportunities

Increased R&D costs for new products.

Demand changes lead to reduced revenue.

Increased operational costs to use more

recycled content or other methods to reduce

embodied carbon.

CCR8: New or changing legislation

and regulation that will directly or

indirectly impact our business.

Transition, market

@ Increased regulation for reducing energy usage

fromfossil fuels.

@ Customers switching to alternative products with lower

embodied carbon due to regulation.

Medium >4.3°C Short,

medium and

long term

Carbon

emissions

New product

development

Climate-related

opportunities

Reduced demand from key customer groups

(e.g. house builders or building merchants) due

to policy changes.

Increased costs from suppliers as they comply

with regulation to reduce energy usage and

carbon emissions.

CCR5: Extreme variability in

weather patterns such as storms,

cyclones, and floods and changes

in precipitation patterns.

Physical, acute

@ Disruption to operations through damage and/or

flooding at factories.

@ Disruption to supply chain and customer projects as

operations or transportation are impacted by acute

physical risks.

@ Changes in precipitation impact water content of raw

materials, e.g. clay requires more energy to extract and

handle in dry conditions and impossible to extract in

drought conditions.

Low >4.3°C Long

term

Physical

climate risks

Reduced revenue from decreased production

capacity.

Increased operating costs (e.g. purchasing

required for climate mitigation).

Increased capital for mitigation measures and/

or repair costs (e.g. damage to infrastructure).

Business disruption in supply chains leading to

loss of revenue.

Increase in insurance premiums.

Other risks considered to not be material risks include:

@ Increased cost of sustainable energy (e.g. green electricity) or reduced availability as demand increases.

@ Rising mean temperatures.

@ Rising sea levels.

@ Water scarcity affecting operations or those of the supply chain.

@ Impact of changing attitudes of investors and financial stakeholders.

We will continue to monitor the risks through the TCFD Working Group and Sustainability Committee.

2. Strategy continued

Our climate risks and opportunities continued

Climate risks continued

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Task Force on Climate-related Financial Disclosures continued

2. Strategy continued

Our climate risks and opportunities continued

Climate-related opportunities

Climate-related financial opportunity Description Impact grading

Scenario with

greatest impact

Link to metrics and

targets Expected financial impact

TR1: Production of more

sustainableproducts.

Transition, market

@ We are developing new products for the market with lower

carbon impact as well as evolving our existing products for

further carbon reduction.

High <2°C Medium

term

New product

development

Increased sales driven by new product

development.

TR2: Changes in customers’

preferences and building practices

resulting in new and emerging

products and solutions.

Transition, market

@ Changes in the building approaches or preferences of

customers could lead to new markets for building products.

@ The opportunity is managed through close relationships

with our customers, Government and industry bodies,

e.g.Future Homes Hub.

High <2°C Medium

andlong term

New product

development

Increased sales driven by new product

development.

b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning

In 2025, Ibstock has made progress against the ESG 2030 Strategy, which includes:

@ Further development of our carbon modelling tool to enable informed decisions in our carbon reduction investment.

@ Evolved our Carbon Transition Plan as we develop our Net Zero Transition Plan in line with Transition Plan Taskforce guidelines, see page 43.

@ Short to medium term, the investment to achieve our carbon reduction is embedded in our financial forecast to align with our carbon reduction target for 2030.

@ Successfully rolled out cement reduction initiatives across a wide range of products exceeding our target to hit 20% sales revenue from new and sustainable products by 2030.

@ Utilised life cycle analysis capability to both inform our new product development (‘NPD’) decision-making and to launch environmental product declarations (‘EPDs’) to our customers on key products.

Operations were minimally impacted by localised flooding events that stopped production for less than a week combined. Processes and emergency response plans are in place to reduce the risk and impact

of floods/storm and alert the business to severe weather events using our communications channels and our tiered meetings structure. Our data centre providers experienced incidents of overheating and

were required to bring in additional cooling capacity impacting services for a number of days. Steps have been taken to mitigate the risk of overheating impacting service in the future.

We have considered the potential impact of identified climate change risks and opportunities through our indicators of impairment reviews and also in the assessment of useful economic lives of assets.

There are a series of sites deemed to be vulnerable to physical risk of variability of precipitation in the long term (2040 to 2050). Management expects any changes required due to climate change will be

covered through maintenance and refurbishment spend as well as strategic estate management phased over multiple years. Therefore, the related cash outflow would not be material in any given year.

With no mitigations in place, management expects the carbon costs will increase in the future but would impact the whole industry. We would expect any carbon-related costs to increase the sales price

andthere would be no material impact in the forecast cash flows. See the Metrics and Targets on pages 189 to 191 for the investment in the low-carbon transition and the impairment and PPE notes

forfurther information.

An internal carbon price was developed in 2023 and is included in decision-making, including capex projects and NPD. The carbon price is a shadow price based on the UK ETS carbon price, as our Clay factories

are covered by the regime. However, we will take an average for the year due to short-term variability in the market price. The internal carbon price covers all the business over Scope 1 and 2 emissions.

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2. Strategy continued

b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning continued

The internal carbon price was used in the following processes:

@ Position management for the valuation of assets to inform replacement and maintenance schedules.

@ Investment decisions, including new capital expenditure to assess carbon savings.

@ Impact of new product development for reduced embodied carbon.

Capital expenditure and new product development processes currently assess the impact of carbon emissions savings and apply the internal carbon price.

The UK ETS carbon price is expected to increase over time with proposed alignment with EU trading scheme and this trend is reflected in the Company’s scenario analysis. In 2025, the average carbon price

under UK ETS was £41.84.

Carbon transition planning

Ibstock’s carbon transition is informed by a detailed profile of carbon reduction projects and actions in the short, medium and long term with financially quantified impacts. This enables modelling around

investment decisions to incorporate carbon impacts and opportunities.

The carbon transition and targets set by Ibstock support a <2°C pathway and is aligned to industry transition pathways.

c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

Ibstock’s approach to scenario analysis

Scenario analysis is a process for identifying and assessing the potential impact of a range of climate scenarios. This is not designed to deliver precise outcomes or forecasts but has been used by our teams

to assess strategic resilience and support business planning decisions.

Our scenario analysis is integrated into our strategic planning cycle, including financial forecasts, and covers our operational footprint. We have considered two contrasting climate scenarios to provide

acontrasting perspective – one below 2°C scenario and a failed transition. This is consistent with the scenario analysis approach within our sector.

We have a detailed strategic plan to 2030 that has been used within the scenario analysis. The full scenario analysis extends to 2050; however, the data available for this timeframe is less sophisticated.

The scenario analysis draws on both internal and external data sources where appropriate. The current year scenario analysis uses the following external data sources: Bank of England Climate Biennial

Exploratory Scenario (‘CBES’) data points; Met Office projections for precipitation; temperature; and water scarcity along with externally commissioned site flood analysis.

CASE STUDY

Improving data quality and controls

Recognising the need to mature the data quality and controls of our material non-financial data, including gas and electricity, we have made improvements to the transparency, traceability and reliability

ofmeter read data across our estate by introducing a new software application. The application enables our sites to enter meter read data together with photographic evidence directly into a central system

either from their PC/laptop or phone. The application includes data controls to ensure the data entered is accurate before it is then exported into reports, which can be used for various use cases including

into our ERP system and carbon data reports.

Task Force on Climate-related Financial Disclosures continued

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2. Strategy continued

c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario continued

Approach to scenario analysis

Climate scenario

Below 2°C Above 4.3°C

Data sets considered IPCC RCP 2.6 RPCC RCP 8.5

Description of scenario Limits global warming to below 2°C

Increased transition risks depending on pathway to meet emission reduction target

Projected carbon price in 2040: USD650

High emission scenario where warming may exceed 4°C

Lower transition risks as there is no further action on climate change

Projected carbon price in 2040: USD650

Assumptions that apply

toallscenarios

Current market share is consistent with performance today

The location of factories and quarries is consistent with today’s footprint

Acceleration of the removal of carbon credits within UK ETS for the clay operations

Capital and research and development investments increase in both climate scenarios

Data sets used IPCC

2021 Climate Biennial Exploratory Scenario for transition risks

UK CP18 Met Office projection for physical risks

Flood risk analysis on Ibstock sites

Scenario analysis results

The tables that follow show the results of our scenario analysis and the strategic response. The financial impact represents the expected impact to Adjusted EBITDA* and cost impact. The output is aligned to the

risk thresholds on page 181. Overall, the results of the scenario analysis indicate the unmitigated physical and transition risks and opportunities will have an impact on the business strategy; however, as our

business strategy includes mitigating factors to these risks, Ibstock remains resilient to the assessed risks.

The highest-impact risks overall are the risk of increased prices of carbon credits or reductions or removal in the number of ‘free’ allowances, the cost and/or failure of new technologies to support

decarbonisation, the transition to new building technologies and the type and nature of materials required along with new or changing legislation and regulation that will directly or indirectly impact our

business. In 2026, we will be reviewing our external climate disclosures and making any changes and amendments as appropriate or required.

Task Force on Climate-related Financial Disclosures continued

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Task Force on Climate-related Financial Disclosures continued

2. Strategy continued

Scenario analysis results continued

Below 2°C scenario

Risks/opportunities with greatest impact in scenario How the risk is modelled

@ Increased prices of carbon credits or reduction of free

allowances over time.

@ Availability of, and ability to, transfer to new

energytechnologies.

@ Development of new sustainable products and services

tosatisfy customer demand.

@ Willingness to pay for low-carbon solutions. Change in

customer preferences and building practices resulting

innew and emerging markets developing.

The carbon price is projected to increase yearly with the accelerated removal of free allowances, principally impacting the Clay division, which

operates within UK ETS. We have used data from the Bank of England’s projected shadow price, and an accelerated removal of free allowances.

We have assumed research and development costs will increase, and there is also an increased risk of impairment of assets.

We have assumed there will be an increase in sales volume for clay and concrete as a result of increased demand for new and sustainable

products, including Futures, to grow sales until 2050.

Impact from scenario analysis

In the short to medium term, unmitigated transition, policy, legal and market risks present the greatest risk to financial performance.

Thehighest impact risks are:

@ Increased prices of carbon credits or reduction in free allowances: Our scenario assumes carbon-free allowances reduce by 50% from

today’s level by 2030 and are reduced in an accelerated basis post-2030 with additional increases of costs in line with climate pathways

outlined by the Bank of England’s early action pathway.

@ Development of new sustainable products and services to satisfy customer demand. The scenario assumes a 20% sales volume increase

from 2023 to 2050.

Strategic response

The carbon reduction tool is a quantified model, including the capital and financial cost along with the expected carbon reduction from

planned projects and potential initiatives. Delivering projects, contributing to our carbon targets, will reduce the risk exposure to carbon prices

and the reduction/removal of UK ETS allowances.

We are exploring commercial terms with strategic suppliers and partners to develop alternative fuels, including synthetic gas and hydrogen,

as a lower-carbon alternative to natural gas.

Developing products with increased recycled content contributes to circularity and reduces carbon emissions.

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Task Force on Climate-related Financial Disclosures continued

2. Strategy continued

Scenario analysis results continued

Above 4.3°C scenario

Risks/opportunities with greatest impact in scenario How the risk is modelled

@ Increased prices of carbon credits or reduction of free

allowances over time.

@ Availability of, and ability to, transfer to new energy

technologies.

@ Increased severity of precipitation patterns and extreme

variability in weather.

@ Redefining the type and nature of materials required.

@ New or changing legislation and regulation that will

directlyor indirectly impact our business.

The carbon price is projected to increase yearly with the accelerated removal of free allowances, principally impacting the Clay division, which

operates within UK ETS. We have used data from the Bank of England projected shadow price, and an accelerated removal of free allowances.

We have assumed a decrease in sales volume and no increased move to new energy technologies or low embodied carbon bricks. We have

modelled disruption in production at production facilities that we have assessed as having an increased risk identified through UK CP18

projections. We have modelled an increased risk production disruption in the long-term period between 2040 and 2050.

Impact from scenario analysis

In the short term, transitional policy and legal risks impact financial performance:

@ Increased prices of carbon credits or reduction in free allowances: Our scenario assumes carbon-free allowances reduce by 50% from

today’s level by 2030 and are fully removed from 2030 with additional increases of costs in line with climate pathways outlined by the

Bankof England early action pathway.

In the medium to long term, transitional market and physical risks present a risk to financial performance. The highest impact risks are:

@ Transition to new building technologies and approaches to redefining the type and nature of materials required and also new or changing

legislation and regulation directly or indirectly impacting our business. These combined scenarios assumes a 30% decrease in sales volume

from 2024 to 2030 with a further 10% decline to 2050.

@ Increased severity of precipitation patterns and extreme variability in weather. Our scenario assumes a one to two-month lost production

for red and amber surface and river flood risk factories.

Strategic response

@ Implementation of carbon reduction initiatives to reduce impact of carbon credit allowance reductions and mitigate the impact of higher

carbon prices.

@ Diversification to new building products and services and maintaining new and more sustainable product development at or above NPD

KPI of 20% to position the business to adapt to changing market preferences and regulation.

@ All factories have an emergency response plan. Our business continuity plan considers processes in light of business disruption that can

beapplied during a climate event.

@ Hot weather Personal Protective Equipment (‘PPE’) is available to sites during the summer to improve working conditions in periods of

extreme heat.

@ Implementing a feedback process for improvements and mitigation actions following climate impacts. For example, in 2025 (following

flooding at sites in autumn 2024), we issued early notifications and reminders for drainage clearance on site in late summer.

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Task Force on Climate-related Financial Disclosures continued

3. Risk management

a. Describe the organisation’s process for identifying and assessing climate-related risks

Climate change is a principal risk to Ibstock and is integrated into the enterprise risk management processes. Climate change is therefore assessed and managed in line with Ibstock’s risk management

framework, as detailed under the governance pillar and on page 48.

However, we recognise that climate change risks and opportunities are complex and can crystallise over a longer time period than typically considered in our enterprise risk management processes.

Therefore, we have a specialist climate-related risk assessment process that provides the framework for identifying material climate-related risks and opportunities, ensuring that climate-risk considerations

are reviewed appropriately, and the outputs and considerations are fed into the broader risk management processes of the Group. This involves a working group of subject matter experts, advisers, and

representatives from around the business.

The process to identify and assess climate-related risks includes:

1. A long list of climate-related risks and opportunities and consideration of horizon-scanning reports for legislation and policy risk across all revenue streams.

2. Climate-resilience assessments at each factory to support physical climate risk assessment.

3. Impact on stakeholders, including investors and employees, is considered.

4. Expected financial impact and areas of value chain impacted by the risk is documented.

5. Impact from scenario analysis, or qualitative review of potential impact where data is not available (e.g. reputational risks).

The climate-related risks and opportunities are assessed for impact and likelihood and shown on heat maps after considering mitigations. The most material risks are shown on pages 181 to 182.

Following the completion of the risk management review, each risk is considered relative to its residual rating having taken into account all existing controls.

b. Describe the organisation’s processes for managing climate-related risks

The climate change risks are graded as low, medium and high risk. Principal risks have at least one ExCo member assigned as the risk owner. The working groups on page 180 also have responsibilities to

manage climate risk.

With recognition of the nature of our industry, Ibstock has set a low to medium risk tolerance and has a robust process to identify any changes to the risk landscape, agreeing proportionate further

mitigating actions where appropriate. As documented on page 48, Ibstock has a three lines of defence structure to the internal controls. This extends to climate change risk. The first line of defence is

operated by management and covers the day to day risk management activities of implementing and executing internal controls. This extends to a risk register for factories, including carbon reduction and

resilience to climate change risk.

The second line (health and safety, quality control and other central functions) works alongside the risk owners to support the design and implementation of the controls framework, whilst the independent

third line is operated by our outsourced Internal Audit provider, RSM.

c. Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organisation’s overall risk management

As noted above, the climate change risks are integrated into the enterprise risk management processes, with climate change being a principal risk. In addition, a climate risk assessment takes place to ensure

all climate risks and opportunities are captured through the process. Climate change is considered as part of the operational risk registers at the half and full year. The results are reviewed and mapped to

the principal risk register. The ExCo considers the risk register ahead of review by the Audit Committee and the Board.

Ibstock applies the same risk thresholds and risk appetite for climate change-related risks.

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Task Force on Climate-related Financial Disclosures continued

4. Metrics and targets

a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process

The table below shows the metrics used to monitor climate risks and opportunities. The metrics cover both transition and physical risks, as illustrated through the aligned risks. We recognise that our carbon

reduction journey may not always be linear and that investments may take some time and resource to fully embed within our manufacturing processes. We consider ourselves to be on track to deliver our

sustainability targets.

In determining the metrics, Ibstock has considered the all sector- and industry-specific guidance. As a business that uses a large amount of energy, carbon reduction is a key metric and KPI of the business.

Category Metric and target Linked climate risk or opportunity Explanation of movement

GHG emissions 40% reduction in Scope 1 and 2 carbon by 2030

based on 2019 benchmark.

Net zero carbon emissions by 2040 (Scope 1

and2).

Less than 10% of the target reduction is

delivered through offsetting with carbon credits.

Increased prices of carbon credits or reductions

in the number of ‘free’ allowances.

Scope 1 and 2 carbon emissions reduced by 41% during 2025

versus the 2019 baseline. This was driven by the reduction of

carbon used during our production processes as well as

decreased production volumes during 2025. Of the 41%

reduction, 25% is permanent carbon reduction on 2019 baseline

16% is temporary production volume decrease which we

forecast to reverse by 2030.

GHG emissions Carbon intensity – Intensity (tCO

e) per tonne of

production (Scope 1 and 2).

Increased prices of carbon credits or reductions

in the number of ‘free’ allowances.

The carbon intensity metric for 2025 was 0.138 tonnes of carbon

per tonne of production, a year on year improvement but below

targeted level due to the estate running at a lower efficiency as

the market remains slow. We expect the full impact of energy

and carbon investments to benefit factories when they return to

optimal capacity.

GHG emissions Scope 3 carbon emissions

net zero before 2050.

Development of new sustainable products and

services to satisfy customer demand.

Willingness to pay for low carbon solutions.

Change in customer preferences and building

practices resulting in new and emerging

marketsdeveloping.

The majority of Scope 3 categories applicable to Ibstock are

calculated using spend-based data. In 2025, we began moving

our high-impact products, like cement, to more accurate activity

based reporting using product-specific EPDs. As a result, we saw

Scope 3 carbon (purchased goods and services) increase

significantly due to these data accuracy improvements.

Physical climate risks

Number of sites vulnerable to physical risks. Changes in precipitation patterns and extreme

variability in weather patterns.

Greater granularity in our scenario analysis on physical risk

showed that none of our sites are at physical risk in the short to

medium term in the below 2°C scenario.

Climate-related opportunities Proportion of revenue, assets or other business

activities aligned with climate-related

opportunities.

20% of revenue from new and sustainable

products by 2030.

Production of more sustainable products. During 2025, 25% of revenue came from new and sustainable

products. This increase comes in part from the lower-carbon

bricks produced at our new Atlas factory.

Capital deployment Amount of capital expenditure and investment

deployed towards climate-related risks and

opportunities.

Production of more sustainable products.

Changes in precipitation patterns and extreme

variability in weather patterns.

Expenditure is in investment in R&D for low-carbon products

andservices.

Investment in climate resilience.

This has not been quantified in 2025. We will explore this further

in 2026.

1 Following a review of Ibstock’s transitional risks, we have concluded that a metric and target around site level transitional risk is inappropriate as these risks will be managed, mitigated and governed at a Group level.

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Task Force on Climate-related Financial Disclosures continued

Category Metric and target Linked climate risk or opportunity Explanation of movement

Internal carbon price Price of each tonne of GHG emission used

internally.

Increased prices of carbon credits or reductions

in the number of ‘free’ allowances.

The internal carbon price is aligned to UK ETS price as clay

operations are in the UK ETS scheme. During 2025, we used the

internal carbon price of £41.84.

Waste management Zero general waste to landfill Supports the success of our carbon reduction

targets and aligns to circularity principles.

General waste to landfill decreased again in 2025 with just 2.1%

of general waste going to landfill due to improvements in waste

providers material management.

Water usage No current target

Metric measured is % reduction in mains water

use against 2019 baseline

Supports the success of our carbon reduction

targets and reduces water stress.

18% reduction in mains water use from 2019 baseline, an

increase from 2024 due to longer dry spells and increased

production.

Remuneration 20% of the 2023 and 2024 LTIP is assessed on

sustainability factors:

@ Carbon emission reduction/Carbon per brick

@ % female leadership/% Earn and Learn

@ % sales from new and sustainable products

Drives the leadership behaviours to support the

success of the Carbon Transition Plan, including

development of lower-carbon products to meet

customer demand.

The outcomes of the 2023 LTIP scheme are described on page 104.

From 2025, performance shares were replaced by restrictive

shares where sustainability strategy progress forms part of the

LTIP qualitative underpin.

b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (‘GHG’) emissions and the related risks

We have verification of over 90% of our Scope 1 and 2 emissions by Lucideon CICS. Lucideon CICS is accredited to ISO 14065 by the United Kingdom Accreditation Service (‘UKAS’) to provide independent

third-party verification and verify our emissions as part of compliance with UK ETS to ISO 14064-3.

Scope 1 and 2 emissions are included in the SECR disclosure on page 174. Scope 3 emissions are on page 175.

The related risks around achieving carbon reduction for the scope of emission:

Scope 1 Scope 2 Scope 3

Failure to transition away from natural gas in

manufacturingprocesses.

Ibstock is investing in trialling syngas and hydrogen.

Please see page 43 for progress with our carbon

transitionplanning.

Failure to reduce energy consumption leading to increased

energy costs.

Please see page 43 for the progress with our carbon

transitionplanning.

Failure of our supply chain to reduce carbon in line with our own

ambitions to meet customer need and longer-term climate

reduction targets.

4. Metrics and targets continued

a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process continued

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Ibstock Plc | Annual Report and Accounts 2025

Task Force on Climate-related Financial Disclosures continued

4. Metrics and targets continued

c. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets

The Sustainability team prepares a sustainability data dashboard including the following metrics:

@ Carbon emissions.

@ Water usage.

@ New product development.

This is reviewed by the ExCo and the Committee four times a year. The Sustainability team provides an overview of progress towards the targets, including any challenges or risks.

The carbon targets were recommended by the ExCo and approved by the Sustainability Committee as part of the ESG 2030 Strategy launched in 2022. The targets were aspirational and leading within our

sector. Our carbon transition planning provides an analysis to demonstrate the 2030 target remains achievable.

Please see page 43 for the summary and progress of our carbon transition planning.

Performance against our 2025 priorities

A summary of our performance relative to our climate change priorities for the 2025 financial year have been set out below:

@ We continued to develop our carbon transition model through 2025 and will publish a plan aligned with the Transition Plan Taskforce in 2026.

@ Validating our carbon reduction targets through SBTi remains challenging for the ceramics sector without a sector-specific pathway.

@ Commenced analysis of the potential for climate-related product opportunities.

@ Mapping our nature-related risks and opportunities in 2025 was not progressed and will be moved to a 2026 priority.

Priorities for 2026

We believe that we have complied with the requirements of TCFD and are starting to adopt climate change into business decision-making. We recognise that there are always improvements to make.

Therefore, the 2026 priorities include:

@ Perform a new climate scenario analysis in 2026, as per TCFD recommendations for this to be completed every three years.

@ Establish a metric for engagement/collaboration on new and developing technologies to ensure industry and Government understand the interdependencies of our sector.

@ Review short-term physical risk mitigation for our sites in response to scenario analysis findings.

@ Continue to move our reporting towards alignment with IFRS S1 and S2 standards.

@ Engage SBTi to work with the ceramics sector on developing routes to achieving target validation.

@ Map our nature-related risks and opportunities in 2026 to align with the Taskforce on Nature-related Financial Disclosure framework.

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Shareholder information

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Ibstock Plc | Annual Report and Accounts 2025

Group Company Secretary

Nick Giles

Registered office

Leicester Road

Ibstock

Leicestershire

LE67 6HS

United Kingdom

Tel: +44 (0)1530 261 999

Company registration number

09760850

Auditor

Deloitte LLP

Four Brindleyplace

Birmingham

B1 2HZ

Joint corporate brokers

UBS AG London Branch

5 Broadgate

London

EC2M 2QS

Peel Hunt LLP

100 Liverpool Street

London

EC2M 2AT

Financial PR

CDR

Rogerson 8th Floor

Holborn Gate

26 Southampton Buildings

London

WC2A 1AN

Registrar

MUFG Corporate Markets

Central Square

29 Wellington Street

Leeds

LS1 4DL

0371 664 0300

From overseas call +44 (0)371 664 0300.

Calls are charged at the standard geographical

rate and will vary by provider.

Calls outside the United Kingdom will be

charged at the applicable international rate.

Open between 09:00–17:30, Monday to Friday

excluding public holidays in England and Wales,

or email MUFG Corporate Markets at

shareholderenquiries@cm.mpms.mufg.com.

Website

www.ibstock.co.uk

Analysis of shareholders – 31 December 2025

2024

Number of

holdings %

Balance as at

31 December

2025 %

1 – 1,000 609 50.75 229,219 0.06

1,001 – 5,000 201 16.75 548,616 0.13

5,001 – 10,000 79 6.58 583,395 0.14

10,001 – 50,000 119 9.92 2,657,732 0.65

50,001 – highest 192 16.00 405,612,632 98.02

Total 1,200 100 409,631,594 100

Holder type

Number of

holdings %

Balance as at

31 December

2025 %

Individuals 844 70.33 1,805,031 0.44

Nominee and institutional investors 356 29.67 407,826,563 99.56

Total 1,200 100 409,631,594 100

Ibstock’s commitment to environmental issues is reflected in this Annual Report, which has been printed

on Revive 100 Silk, which is 100% post-consumer recycled, FSC

certified and totally chlorine free (TCF)

paper. This document was printed by Park Communications using its environmental print technology,

which minimises the impact of printing on the environment, with 99% of dry waste diverted from landfill.

Both the printer and the paper mill are registered to ISO 14001.

Please recycle.

Produced by Design Portfolio

www.design-portfolio.co.uk

CBP035073

Ibstock Plc

Leicester Road

Ibstock

Leicestershire

LE67 6HS

United Kingdom

+44 (0)1530 261 999

ibstock.co.uk