UK’s largest brickmaker hit by sales slump as housebuilding downturn deepens
Source: The Guardian ·
Ibstock, which has cut production by a fifth, criticises government for delay in help for housing sectorSales at the UK’s largest brickmaker plunged by more than a fifth over the summer, as it criticised the government for not introducing fresh help for the housing sector faster.Leicestershire-based Ibstock said on Monday that sales slumped by 22% below its expectations in the quarter to the end…
From the source
Sales at the UK’s largest brickmaker plunged by more than a fifth over the summer, as it criticised the government for not introducing fresh help for the housing sector faster. Leicestershire-based Ibstock said on Monday that sales slumped by 22% below its expectations in the quarter to the end of September, prompting it to slash production levels by a fifth. Ibstock issued its second profit warning this year and said that UK brick market volumes declined by 17% year on year in July and August, with weak market conditions continuing through September and October. “Trading conditions deteriorated sharply during the third quarter, with weakness continuing into October,” said Joe Hudson, the chief executive of Ibstock. “We have responded by reducing production to manage inventory, taking further cost action and maintaining tight control of cash. These production decisions create an additional near-term earnings headwind but are necessary to align output with demand.” The warning by the…
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