Revenue and profits fell short of expectations at brick maker Ibstock today, opening fresh insight into the extent of the house market slowdown.
But with interest rates already on the way down and government plans to build 1.5 million new homes stoking hopes of a rebound, the company’s shares rose.
Ibstock’s half-year sales fell by a fifth to £178 million, under the £204 million expected in the City. Profit was down two-fifths to £38 million.
The £709 million firm said the declines, in the six months to the end of June, followed a drop in general market demand which was made worse by “exceptionally wet weather in the early part of the period”.
It called the performance “solid ... against the backdrop of continued challenging market conditions.”
Adding to hopes in the industry that prospects were improving, Ibstock added its voice to predictions of brighter times ahead.
“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,” it said.
And it pointed to “signs of an improving trend in sector lead indicators” and predicted annual revenue for 2024 in line with last year’s level.
Jon Hudson, CEO, said Ibstock remains well-positioned for market recovery”, adding:
“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.”
Shares in the firm added 9p, or 5%, to 181p.
