Ibstock cuts production by a fifth after sales slump deepens

Ibstock, the UK’s largest brickmaker, said sales fell sharply as the housing downturn deepened, prompting it to cut production by a fifth and issue its second profit warning this year. The company blamed weak demand and criticised the government for delaying a first-time buyer support scheme, adding pressure to an industry already facing doubts about housebuilding targets.

Sales in the quarter to the end of September were 22% below Ibstock’s expectations, while UK brick market volumes fell 17% year on year in July and August. The company expects full-year profits in the mid-£40m range, compared with analysts’ previous forecast of £59m, and its shares fell by more than 8%. A government scheme offering eligible first-time buyers in England a 2.5% deposit for a new-build home is due to begin in April 2027; the housing secretary has said there is only a slim chance of meeting the target of 1.5 million new homes this parliament.