Sales slump at UK’s largest brickmaker as housebuilding downturn deepens
Ibstock, which has cut production by a fifth, criticises government for delay in help for housing sector Sales at the UK’s largest brickmaker plunged by more than a fifth over the summer, as it criticised the government for not introducing fresh help for the housing sector faster. Leicestershire-based Ibstock said on Monday that sales slumped by 22% below its expectations in the three months to…
UK's largest brickmaker, Ibstock, is experiencing a significant sales slump as the housebuilding sector continues to struggle. The company has reported a 22% drop in sales, far below its expectations, leading to a decision to slash production levels by a fifth. Ibstock's chief executive, Joe Hudson, stated that trading conditions deteriorated sharply during the third quarter, with weakness persisting into October.
The company, which expects full-year profits to be "materially below" previous forecasts, has issued its second profit warning of the year. This comes days after the Office for Budget Responsibility reduced its forecast for the number of new homes built by 2031 by 190,000, casting doubt on the government's goal of constructing 1.5 million new homes during the current parliament.
Ibstock has criticized the government for the delay in introducing a support scheme aimed at helping first-time buyers in England purchase a newbuild home with a 2.5% deposit. The company expects full-year profits to be in the mid-£40m range, a significant drop from the previous consensus of £59m. Analysts at Peel Hunt noted that domestically exposed building stocks like Ibstock continue to face challenging industry conditions, with the introduction of the Your First Home support scheme providing some potential relief, but lower interest rates remaining crucial for a rebound in sector activity and share prices.
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