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Ibstock Issues Profits Warning as Third-Quarter Sales Fall Short
Ibstock warns on profits as third-quarter sales fall 22% below expectations and production is cut by a fifth.
Key points
- Industry data showed UK brick market volumes down 17% year-on-year in July and August.
- Ibstock cut production volumes by one-fifth versus plans set out as recently as August.
- The Your First Home scheme will only be launched next April, according to the chancellor's budget.
Why it matters. The warning points to a deeper slowdown in UK housebuilding, as borrowing costs may rise and the new first-home scheme is not due until next April.
UK brickmaker Ibstock, the country's biggest, said third-quarter sales were 22% below expectations, forcing a one-fifth cut in production versus August plans. Its shares fell 11% to near their lowest since the 2015 stock market relisting, and 2026 top-line earnings will be "in the mid-£40m range", against close to £60m expected by the City. Chief executive Joe Hudson said the delayed Your First Home scheme "may weigh on demand in the intervening period".
Latest updates
Ibstock Issues Profits Warning as Third-Quarter Sales Fall Short
Brickmaker Ibstock has issued a profits warning after its third-quarter sales came in below expectations. The company's weak trading adds to gloom across UK housebuilding. Lower demand for building materials has weighed on suppliers as construction activity remains subdued. The Guardian reports the warning, which was published on Sunday. Further details on the scale of the profit shortfall were not included in the available reporting.