Ibstock annual sales dropped 21pc in 2023

Commissioning of the group's new wire-cut brick pathfinder factory at the Atlas site in Aldridge started on schedule during the final quarter.

This innovative new manufacturing facility will begin to supply the UK's lowest carbon bricks to customers during the first half of 2024.

Ibstock says the recent investment programme in its brick assets will ensure the group has a lower carbon and more competitive factory portfolio.

Trading in the final quarter of 2023 was in line with expectations, underpinned by cost reduction action and stable pricing, with market conditions remaining subdued.

Adjusted eanings before tax for the full year are expected to be in line with previous expectations.

A comprehensive operational review was completed in the final quarter to reduce headcount and align its fixed cost base and capacity to met near term demand expectations. The South Homwood brick factory in Surrey was permanently closed.

Ibstock says the residential construction market is expected to remain subdued in the short term.

The annual benefit of the restructuring plan will be £20 million, with around £5 million of this captured in 2023 and the balance to be achieved in 2024.

The group continued to make good progress with its ongoing development of the Ibstock Futures business during the final quarter, with both the facades business, based at the innovation hub in the West Midlands, and the organic investments in brick slips capacity at Nostell, West Yorkshire, progressing to plan.

During the final quarter, the Concrete Division completed the bolt-on acquisition of Coltman Precast, a manufacturer of hollowcore flooring, staircases and landings, based in Canwell, near Sutton Coldfield.

Joe Hudson, chief executive of Leicestershire-based Ibstock, said: "Against a challenging market backdrop, we are pleased to have delivered a resilient performance in the final quarter and for the year as a whole. Throughout the period we have focused on taking the right actions in light of near term market conditions, which has led to the difficult but necessary decision to reduce headcount across the business. At the same time, we have continued to progress the projects that will underpin growth as our markets recover.

"While the pace and timing of the recovery remain uncertain, Ibstock is in robust financial health, with the balance sheet strength and financial flexibility to ensure we remain well-positioned for a return to growth over the medium term."