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Ibstock PLC shares fell sharply on Wednesday as it said a ‘more competitive market backdrop’ has meant it has struggled to pass on the impact of cost inflation to customers. Shares in Ibstock fell 15% to 164.08 pence in London on Wednesday morning. The Leicestershire, England-based building products supplier said it expects adjusted earnings before interest, tax, depreciation and amortisation for 2025 to be between £77 million and £82 million. This is between a 2.5% fall and a 3.8% rise compared to £79 million in 2024. The company said average selling prices have been ‘adversely impacted by sales mix’. ‘This, combined with a more competitive market backdrop, has made passing on the full impact of cost inflation more challenging,’ Ibstock said. Based on sales mix and absolute pricing levels, Ibstock said it expects sales prices during the first half of 2025 in both clay and concrete to be broadly in line with the prior year. Ibstock also noted that steps it has taken to add to capacity at its clay network factories have led to higher than expected incremental fixed costs in the current year, ‘particularly as productivity and operational efficiency ramp up from initial lower levels at these factories’. Activity levels in its markets have continued to be ‘well above’ the prior year, due to increased demand in residential construction. Therefore, the company continues to expect first half sales volumes in its core business ‘to be materially above the prior year level’. Progress on its organic growth projects remains on track, with production volumes at the Atlas site increasing as expected during the period, it added. ‘Good progress’ has also been made with the construction of a larger ceramic facades systems factory at the Nostell site, which remains on track for commissioning by the end of the year. Chief Executive Officer Joe Hudson said: ‘Despite ongoing uncertainty, we are encouraged by signs of recovery in the UK housing market. As such, we remain committed to taking steps to ensure we are well placed to support customers and benefit from the recovery as it gathers pace. Notwithstanding the margin headwinds encountered in 2025, we remain confident that our recent actions alongside our strategic investments leave us well positioned as activity levels continue to pick up.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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