Firm says restructuring programme will save it £20m a year

Falling demand in the new build housing sector saw profit and revenue at brickmaker Ibstock nosedive last year.

The firm, which in January said had closed a second factory in less than six months, said pre-tax profit slumped 71% to £30m on income down 21% to £406m.

The firm has closed a factory at South Holmwood in Surrey, following the decision to shut its Ravenhead factory in Lancashire last summer.

ibstock site

The housing slowdown saw Ibstock’s profit fall more than 70%

It said the fall in profit included a £31m exceptional charge, £10m of which was a cash cost for restructuring.

Chief executive Joe Hudson said: “Activity in the early weeks of 2024 has continued to reflect the more subdued demand environment experienced throughout the latter part of 2023.”

“The organisational changes implemented during the second half of the 2023 year have created a leaner, more customer-focused business, which will deliver an enduring benefit for years to come.”

Net debt during the year was up £55m to £101m.