Ibstock makes £27m loss as brick demand dives

Grant Prior 5 hours ago
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Brick giant Ibstock made a pre-tax loss of £27m during the six months to June 30 as demand for its products slumped.

The loss compared to an £8m profit last time as turnover fell to £164m from £193m.

The losses came despite two price hikes during the period as production levels were reduced by 20 million units and mothballed facilities led to impairment charges of £24.7m.

Joe Hudson, Chief Executive Officer said: “Ibstock delivered a solid first-half performance against a backdrop that remains challenging, with focused execution delivering results in line with our expectations. We continue to enhance our market leading position with continued progress across our strategic levers, and we will continue to adapt capacity, inventory levels and costs to market conditions.

“Although we expect private housebuilding and RMI activity levels to remain challenging in the near term, the Group expects to achieve a stronger adjusted EBITDA in H2 than H1.

“Looking ahead, with the investments we have made in our manufacturing network largely complete – driving a more reliable and efficient network, we are well-positioned to capitalise when market conditions improve. Continued progress across our five strategic levers – which includes the breadth of opportunities within our unrivalled land and clay reserves – reinforces our confidence in the Group’s ability to create significant long-term value.”

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