Ibstock ready for recovery in new home building
Brick group Ibstock says it is positioned well for a recovery in the new build market in the UK.
The group produces a diverse range of building products and solutions and has two of its factories at Aldridge.
It has invested £75 million in upgrading the Atlas site at Stubbers Green Road and the adjacent site in Coppice Lane.
For the third quarter of 2023 the group said it delivered a resilient performance .
Market demand in the period was more subdued than expected. As a result, and in line with the wider UK brick industry, sales volumes in the third quarter were below those achieved during the second quarter of the year. Despite these weaker volumes, effective cost reduction action combined with stable pricing resulted in margins for the quarter remaining robust.
Underlying profit expectations for the financial year are unchanged.
Ibstock says it will continue to actively manage capacity and costs and ensure that capacity is aligned to market demand to ensure it is well positioned to respond when activity levels recover.
Chief executive Joe Hudson said: "The group delivered a resilient performance in the third quarter despite a very challenging market backdrop. I am proud of the way that everyone at Ibstock has remained focused on the delivery of a strong operational performance while also ensuring that the group made continued strategic progress.
"As macroeconomic conditions stabilise, we expect a recovery in market activity, reflecting the significant underlying demand for new build housing in the UK. Whilst we are taking a cautious view around the pace and timing of this recovery, we remain confident in our ability to continue to respond to market conditions, taking the action necessary to protect performance, while ensuring the business remains well positioned for an increase in activity."
