Brick maker to shut second factory as sales slump

A slump in the housing market has led to East Midlands brick maker Ibstock closing another factory.

The Leicestershire-based company has reported that full-year revenues are expected to slump by over a fifth to £405m.

Ibstock said that because of this it has shut down its South Holmwood brick factory in Surrey, following the closure of its Ravehead factory in Lancashire last year.

The company will incur a one-off cost of closing both plants of £15m but save £20m a year.

Joe Hudson, CEO of Ibstock, said: “Against a challenging market backdrop, we are pleased to have delivered a resilient performance in the final quarter and for the year as a whole.

“Throughout the period we have focused on taking the right actions in light of near term market conditions, which has led to the difficult but necessary decision to reduce headcount across the business. At the same time, we have continued to progress the projects that will underpin growth as our markets recover.

“While the pace and timing of the recovery remain uncertain, Ibstock is in robust financial health, with the balance sheet strength and financial flexibility to ensure we remain well-positioned for a return to growth over the medium term.”