Ibstock has seen a decline in revenue and profits during the first half of its new financial year, with the manufacturer of building products noting that sales volumes were “down significantly.”
According to results for the six months ended 30 June 2023, revenue decreased 14% to £223 million, in comparison to £259 million in the same period of 2022. The company said this reflected reduced activity levels in its residential markets.
Profit before tax of £30 million, meanwhile, dipped from £51 million in 2022, reflecting an exceptional cost of around £11 million arising from potential clay site closures.
Joe Hudson, Chief Executive Officer, said: “Our first half performance demonstrates our resilience in a subdued market environment, with lower customer demand across both new build and RMI segments. Our focus on customer service and commercial execution, coupled with disciplined management of capacity and costs, has enabled us to deliver a result marginally ahead of our expectations, despite more challenging trading conditions.
“We have continued to make strong progress with our strategic investment plans that will underpin Ibstock’s future growth and enhance our industry leadership position. By focusing on expansion, diversification and innovation we are building new capabilities in faster and sustainability-led growth segments of the UK construction market.
“Although overall sales volumes were down significantly in the first half, demand showed improvement across the period. Whilst recent macroeconomic developments have created increased uncertainty in the outlook, having performed marginally ahead of our expectations during the first half we remain confident in our ability to respond to market conditions in the balance of the year and the Board’s expectations for the full year are unchanged.“
