Ibstock profits, sales slump on wet UK weather

(Sharecast News) - Brick maker and building supplies company Ibstock reported a slump in first-half profits and sales as Britain's soggy summer hit the construction industry. Pre-tax profit more than halved to £12m for the first six months of the year compared to £30m last year. Revenue was down 20% to £178m. Ibstock cited down to lower market demand, exacerbated by the wet weather.

Core earnings fell to £38m from £63m the previous year.

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

"Lead indicators point to an improving sector picture, and although we are taking a cautious view of the extent to which this will translate into a demand improvement in the balance of the year, we expect adjusted EBITDA for the second half of the 2024 year to be broadly in line with the comparative period in 2023."

"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."

Reporting by Frank Prenesti for Sharecast.com