Profits tumble at brickmaker amid ‘very difficult’ year
Ibstock, the Leicestershire-based brick maker has revealed a downbeat set of results for 2023 – with major drops in both revenue and profit before tax.
The firm is calling the performance “resilient”, despite a 21% fall in revenue to £406m and a 71% drop off profits to £30m.
Ibtock’s surplus was hit by a £10m cost attributable to restructuring costs after it shut down its South Holmwood brick factory in Surrey, following the closure of its Ravehead factory in Lancashire last year. However, the company said that this will save it around £20m by the end of 2024.
Ibstock said that trading in the early weeks of 2024 has been in line with the “subdued levels” seen in the latter part of last year, but that it anticipates “a degree of improvement” as the year progresses.
Joe Hudson, chief executive officer, said: “We have delivered a resilient performance for the year in what have been very difficult market conditions, and I am proud of the way that colleagues across the group have responded in such challenging circumstances. Our results reflect both continued strong execution and the difficult but decisive actions taken to reduce headcount and realign capacity with near term market conditions.
“The organisational changes implemented during the second half of the 2023 year have created a leaner, more customer-focused business, which will deliver an enduring benefit for years to come.
“In doing so, we have also created a platform to accelerate innovation, with a particular focus on the sustainability of our products and processes. In combination with the strength of our brand and unrivalled product portfolio in the UK construction marketplace, we believe this will unlock significant value over the years ahead.”
