UK’s largest brickmaker hit by sales slump as housebuilding downturn deepens
Summary
UK brickmaker Ibstock said sales were 22% below its expectations in the third quarter and cut production by a fifth as weak housing demand continued. It issued its second profit warning of the year, forecasting full-year profit in the mid-£40m range, below analysts’ previous estimate of £59m.Key Facts
- Ibstock reported that UK brick market volumes fell 17% year on year in July and August.
- The company said weak trading continued through September and October.
- Ibstock reduced production by 20% to manage inventory and match output to demand.
- The Office for Budget Responsibility cut its forecast for new homes built by 2031 by 190,000.
- Housing Secretary Angela Rayner said there was only a slim chance the government would reach its goal of building 1.5 million homes during the parliament.
- Ibstock criticised the delay of the Your First Home scheme until April 2027; it is designed to help first-time buyers in England purchase a new-build home with a 2.5% deposit.
- Ibstock shares fell more than 8% after the company’s announcement.
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