Ibstock PLC on Wednesday reported a significant slump in financial performance during the first half of the year, although management remains confident the company will benefit from growing housing demand in the UK going forward.

The Leicestershire, England-based company offers a range of building products, such as bricks, as well as technical & design services.

Pretax profit fell 61% to £11.8 million in the six months that ended June 30 from £29.9 million the prior year.

Revenue declined 20% to £178.2 million from £222.7 million, while cost of sales fell 16% to £126.8 million from £150.9 million.

Ibstock more than halved its interim dividend to 1.5 pence per share from 3.4p previously.

Net debt increased 55% to £137.8 million from £89.1 million

Chief Executive Officer Joe Hudson said: ‘Market conditions remained challenging in the first half, as expected, with sales volumes below those reported in the comparative period. We delivered a solid profit performance for the period which reflected our ongoing focus on the active management of cost and margin.

‘The new [UK] government’s commitment to increasing the supply of new homes creates a more positive backdrop for medium term demand, and the group remains well-positioned for market recovery. Our investments over the last few years have added high quality, lower cost, efficient and more sustainable capacity to our network and developed new capabilities for the group in diversified construction markets, while also creating a leaner, more customer-focused business.’

Looking ahead, Ibstock expects second half adjusted earnings before interest, tax, depreciation, and amortisation to be broadly in line with £44 million recorded in 2023.

Ibstock shares were up 5.7% to 181.98 pence each in London on Wednesday morning.

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