Ibstock has reported pre-tax profit down 30% for the year ended 31st December 2024 to £20.7m (2023: £30.1m) on revenue down 10% at £366m (£406m).
Sales picked up in the second half of the year, however, and the company says that it is ‘well-placed for market recovery’.
In fact, trading in the early weeks of 2025 year has been ‘solid’, it said, with sales volumes on the up.
Chief executive Joe Hudson said: "Our continued focus on the active management of capacity and margin ensured we delivered a resilient performance in 2024. As expected, we saw a progressive improvement in sales volumes through the second half with demand supported by our leading service and supply proposition. The effective management of pricing and volumes throughout the year underpinned resilient margins combined with market share gains through the latter part of the 2024 year.
"Against this backdrop, I am also pleased to report strong progress against all elements of the group's strategy with lower cost, more efficient and sustainable capacity in place to support market recovery, and continued progress towards our ambitious sustainability targets.
"We expect an improvement in market volumes in 2025, with momentum building through the year. Ibstock is well-positioned for a market recovery, and the fundamental drivers of demand in our markets remain firmly in place. We see a significant opportunity for a new era in housebuilding in the UK and with the investments we have made and our market leadership positions, the group remains well placed to support and benefit from this over the medium term."
Revenues in the core Clay division reduced by 15% to £249m (2023: £292m) even though the total UK clay brick market in 2024 was steady at 1.7bn units (although still more than 30% below the 2.5bn total market in 2022). However, Ibstock’s market share improved towards the end of the year, ending close to its 2023 level.
Ibstock Concrete generated revenue of £117m (2023: £114m), aided by the acquisition of flooring specialist Coltman Precast. On a like-for-like basis, the Concrete division was down 7%.
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