Management at Britain’s biggest brick maker have said that demand continues to fall following the slowdown in 海角视频 housebuilding.
Leicestershire-based Ibstock said demand for its products in the past three months had been even worse than expected even though it managed to deliver what it called a “resilient performance” by focussing on customer service and disciplined management of capacity and costs.
The £513 million turnover business said sales for the three months were down on where they were in the previous quarter, though margins remained “robust”.
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Despite that, the Ibstock board said work to mitigate the downturn meant its previous profit forecast remained on track.
In August previously said revenues for the first six months of 2023 were down 14 per cent at £223 million while net debt rose from £36 million to £89 million. Pre-tax profits for those first six months dropped £21 million to £30 million compared to the same time last year. It also said it was planning to close its “higher-cost” Ravenhead factory in Lancashire, which makes 40 million bricks a year.
In its new trading update it said despite all that its new Atlas factory in the West Midlands was set to open by the end of the year, producing the 海角视频’s first officially carbon neutral brick.
Chief executive Joe Hudson said: “The group delivered a resilient performance in the third quarter despite a very challenging market backdrop.
“I am proud of the way that everyone at Ibstock has remained focused on the delivery of a strong operational performance while also ensuring that the group made continued strategic progress.
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“As macroeconomic conditions stabilise, we expect a recovery in market activity, reflecting the significant underlying demand for new build housing in the 海角视频.
“Whilst we are taking a cautious view around the pace and timing of this recovery, we remain confident in our ability to continue to respond to market conditions, taking the action necessary to protect performance, while ensuring the business remains well-positioned for an increase in activity.”
Last week Barratt Developments – which is based just up the road from Ibstock – warned the property market would remain “difficult” as higher mortgage costs hit demand.
The group said it saw weekly reservations for new homes slump to 169 from 188 since the end of June.
It cautioned over an “uncertain” outlook, “with the availability and pricing of mortgages critical to the long-term health of the 海角视频 housing market”.
Barratt added it expect “the backdrop will continue to be difficult over the coming months”.