Baggeridge Brick says that it is cutting production of bricks as slowdown in housing market hits demand.
Baggeridge Brick has reported that demand for its bricks is at ‘historically low levels’.
In a trading statement Baggeridge blamed the downturn on the slowdown in the housing market and uncertain consumer confidence. As a result the company said that profit for the year ending September 2005 would be significantly lower than market expectations.
The company has reduced output at a number of factories in response to the lower demand. It has also expressed concern over escalating energy costs, and said that a one pence per therm change in gas price equated to about a £200,000 increase in costs.
However, Baggeridge says that it is well placed to manage market conditions because of its investment in energy efficient production facilities
Shares fell 14% to 159p during morning trading.