Shares in Ibstock (IBST) closed 13 per cent down on the day management revealed that lower than anticipated brick production at its UK factories would mean underlying cash profits for the full-year would likely come in below some analysts’ expectations, at between £121m and £125m.
While demand from UK brick customers remained strong, the group’s factories have been producing at – or close to – full production capacity for an extended period, management said. However, production was lower than expected in July, forcing management to establish a 12-month period of increased maintenance activity to ensure factories can operate at sustainable levels to meet demand. What’s more, adjusted cash profits for the first-half will be around £58m, reflecting a weather impacted start to the year and higher energy costs.
