Brick maker struggles in first half as revenues plunge

Ibstock, the Leicestershire-based brick maker has faced a tough first half of the year attributing it to challenging market conditions.

Revenue dropped by 20% to £178m from £223m in 2023, a decline the company attributes to reduced sales volumes and weaker market demand.

The statutory profit before tax was £12m, a decrease from £30m last year.

In March, Ibstock reported that trading in the early weeks of 2024 matched the “subdued levels” experienced towards the end of last year. However, the anticipated improvement in performance as the year progressed has yet to materialise. 

Joe Hudson, chief executive officer, said: “Market conditions remained challenging in the first half, as expected, with sales volumes below those reported in the comparative period.

 “The new government’s commitment to increasing the supply of new homes creates a more positive backdrop for medium-term demand, and the Group remains well-positioned for market recovery.  Our investments over the last few years have added high quality, lower cost, efficient and more sustainable capacity to our network and developed new capabilities for the group in diversified construction markets, while also creating a leaner, more customer-focused business.

“We believe this will be a powerful combination as market conditions improve. The fundamental drivers underpinning demand in our markets are firmly in place and our prospects remain strong, underpinned by our robust balance sheet.”