Struggling housing construction sector hits sales at Ibstock

Building products manufacturer Ibstock has blamed the wet weather and dampened demand in the housing market for lower-than-expected sales so far this year.

However the Leicestershire-based business has said its £15m programme of cost savings have contributed to it keeping profits on track during the “challenging” period.

Sales volumes are expected to improve as the year progresses, with the company sticking with its full-year profit forecasts.

Ibstock, which is in the FTSE 250, is positive that it will be well-placed when the residential construction market does pick back up.

Ibstock chief executive Joe Hudson said: “While we expect market demand to remain subdued in the near term, lead indicators reflect an increase in housing market activity, which offers encouragement for an improvement in volumes in due course.

“We have the capability to take advantage of opportunities against the current subdued backdrop, and the business is well placed to achieve strong, profitable growth as our markets recover.”

The company has confirmed its major capital projects are “on track” with commissioning of its Atlas factory and the first phase of the brick slip systems investment in Nostell “progressing well”.