Brickmaker slips into red after tough year

Brickmaker Ibstock has seen profits and revenue collapse for 2019 after what it is calling “an unprecedented backdrop” of Covid-19.

Turnover at the Leicestershire company fell from £409m in 2019 to £316m last year, while profits tumbled from £85m to a loss of £24m over the same period, with performance down in both its concrete and clay division.

Joe Hudson, chief executive officer of Ibstock, said: “Through the actions we have taken, the group has entered the new financial year with a stronger operational platform in place and a clear focus on the strategic drivers that will re-establish growth and create sustainable, long term earnings momentum in the business.

“Market demand recovered faster than our expectations as we progressed through 2020, and trading in the initial period of 2021 has started well, with clay sales volumes slightly ahead of the run rates achieved in Q4 2020. While we remain mindful of the economic uncertainties and disruption associated with COVID-19, we are encouraged by the strength of trading over recent weeks and are confident for the year ahead.

“Looking further forward, market fundamentals remain supportive, underpinned by the UK housing deficit, Government policy and low interest rates. With a strong management team, clarity on the strategic drivers which will underpin our progress and continued recovery in our core markets, we believe that Ibstock is well placed to re-establish positive earnings momentum and deliver sustainable, profitable growth over the medium term.”