Ibstock Slashes Production After Second Annual Profit Warning
Ibstock plc reduced production by 20% and lowered profit forecasts after third-quarter sales plunged 22% below expectations.
The United Kingdom's largest brickmaker, Ibstock plc, issued its second profit warning of the year on Monday after third-quarter sales fell 22% below expectations. The company now expects full-year profits to reach the mid-£40m range, a significant decrease from the £59m analyst consensus. In response to the slump, the company slashed production levels by 20% to align output with demand and manage inventory.
Chief Executive Joe Hudson attributed the decline to sharply deteriorating trading conditions that continued into October. Ibstock criticized the government for delaying the Your First Home support scheme for first-time buyers until April 2027. This downturn aligns with a revised forecast from the Office for Budget Responsibility, which reduced the number of projected new homes by 190,000 through 2031.
Following the announcement, Ibstock shares dropped as much as 13%, the largest decline on the London stock market for the day. Housing Secretary Angela Rayner noted there is only a slim chance the government will meet its home-building goals.
