IN ITS half year trading update, Ibstock’s revenue fell by 20% to £178 million (from £223 million in 2023), resulting from lower sales volumes across the core business.

The manufacturer of clay and concrete building products says sales volumes in the six months ended 30 June 2024 reflected lower market demand and the company’s “disciplined approach to pricing”, compounded by wet weather in the early months of the year.

However, Ibstock Group says it delivered adjusted EBITDA “in line with our expectations”.

Going forward, the new government’s focus on accelerating the delivery of new housing and infrastructure is expected to form a more positive backdrop for housing industry supply chains and effective demand over the medium term.

The Group says “we are encouraged by signs on an improving trend in sector lead indicators” and “we expect adjusted EBITDA for the second half 2024 to be broadly in line with the comparative period”.

Ibstock reports its major capital projects are on track with the first brick slips from its Nostell factory coming to market during the second half of this year, with the larger automated slip systems factory on track to commission by the end of 2025.

Ibstock Half Year Results

Joe Hudson, Chief Executive Officer, commented: “Market conditions remained challenging in the first half, as expected, with sales volumes below those reported in the comparative period. We delivered a solid profit performance for the period which reflected our ongoing focus on the active management of cost and margin.

“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. 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.”

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