businessBREAKING
Ibstock Cuts Production and Sales Slump as UK Housebuilding Downturn Deepens
Ibstock cuts production by a fifth as sales slump amid a deepening UK housebuilding downturn.
Key points
- Ibstock's sales fell 22% below its expectations in the three months to the end of September.
- The company now expects full-year profits in the mid-£40m range, well below analysts' previous consensus of £59m.
- Ibstock's market value has halved over the last year to £277m.
Why it matters. The profit warning and output cut signal weak near-term demand in UK housebuilding, and Ibstock said the delay of the Your First Home scheme to April 2027 has added pressure on demand.
Ibstock, the UK's largest brickmaker, said on Monday that sales slumped 22% below its expectations in the three months to September, prompting it to cut production by a fifth. The Leicestershire-based company issued its second profit warning this year and said UK brick market volumes fell 17% year on year in July and August. Shares fell as much as 13%, and chief executive Joe Hudson blamed sharply deteriorating trading conditions.
Latest updates
Ibstock Cuts Production and Sales Slump as UK Housebuilding Downturn Deepens
The Guardian reports that Ibstock, the UK's largest brickmaker, has seen sales slump. The company has cut its production by a fifth. Ibstock has criticised the government for delaying support for the housing sector. The downturn in housebuilding is described as deepening. The report does not specify the government support that has been delayed or when it is expected.