Ibstock PLC on Thursday said first quarter trading conditions remained challenging, as activity levels across residential construction markets remained subdued during the period.

The Leicester, England-based maker of clay and concrete building products said sales were below its expectations as a result, with weaker end market demand partially reflecting ‘exceptionally’ wet weather in the UK in the first three months of 2024.

However, Ibstock said it still delivered adjusted earnings before interest, tax, depreciation and amortisation for the period in line with its expectations. This is despite ‘weaker volumes, strong performance across our cost reduction actions, commercial discipline and operational execution’, the company said.

It provided no specific figures in its trading update.

Looking ahead, Ibstock said it is encouraged by recent lead indicators suggesting ‘some improvement’ in future demand. It said it will pay attention to how this translates into activity during spring.

‘We remain focussed on costs and operational performance during this period of market volatility but continue to expect volumes to improve as the year progresses,’ the company said.

‘Our major capital projects are on track with commissioning of the new Atlas factory and the first phase of the brick slip systems investment in Nostell progressing well. These projects, together with the significant investment in our core business over recent years, leave the group well positioned to support the significant unmet demand for new build housing in the UK.’

Chief Executive Officer Joe Hudson commented: ‘Our medium-term prospects remain strong, underpinned by our robust balance sheet, well invested manufacturing network and leading market positions. We have the capability to take advantage of opportunities against the current subdued backdrop, and the business is well-placed to achieve strong, profitable growth as our markets recover.’

Shares in Ibstock were down 1.9% to 147.00 pence each in London on Thursday morning.

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