Ibstock Cuts Output by a Fifth After 22% Sales Slump
Ibstock said third-quarter sales fell 22% below expectations, cut production by a fifth and issued its second profit warning this year.
The story in focus
Ibstock, the UK's largest brickmaker, said third-quarter sales fell 22% below its expectations, prompting it to cut production by a fifth and issue its second profit warning this year, The Guardian reported.
- Ibstock said quarterly sales were 22% below expectations and cut production by a fifth.
- The company forecast full-year profits in the mid-£40m range, down from an analyst consensus of £59m.
- UK brick market volumes fell 17% year on year in July and August, with weakness continuing through October.
- Ibstock shares fell as much as 13%, and its market value halved over the year to £277m.
- The company said the April 2027 start of the Your First Home scheme was disappointing and late.
Sales shortfall and production cuts
Ibstock said sales in the three months to the end of September were 22% below its expectations, according to The Guardian. The Leicestershire-based company responded by cutting production by a fifth to manage inventory.
The brickmaker issued its second profit warning this year and said UK brick market volumes declined 17% year on year in July and August, with weak conditions continuing through September and October. It now expects full-year profits in the mid-£40m range, compared with an analyst consensus of £59m.
Market reaction and policy pressure
Ibstock shares fell as much as 13%, making the company the biggest faller on the London stock market on the day, The Guardian reported. Its market value has halved over the past year to £277m.
The company partly attributed the pressure to the delayed April 2027 start of the Your First Home first-time buyer scheme, which it called welcome but late. Peel Hunt analysts cited challenging industry conditions and said lower interest rates remained key to a recovery in sector activity and share prices, The Guardian reported.
What did Ibstock say about the Your First Home scheme?
Ibstock said the scheme was a welcome and potentially meaningful intervention for the UK housing market, but the delay to its introduction until April 2027 was disappointing and put additional pressure on near-term demand.
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