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UK's Ibstock lowers annual profit view for the second time, shares slump

By Reuters News

Nov 2 (Reuters) - Ibstock IBST.L shares tumbled 15% to a record low on Monday after the British bricks and concrete maker cut its annual profit expectations for the second time this year, citing persistent weakness in the construction market.

  • UK Construction materials suppliers have been pressured by a slump in residential and commercial construction, amid affordability constraints and rising mortgage rates and costs

  • The UK's recently introduced first-time buyer subsidy temporarily boosted shares for construction material stocks, on expectations of a revival in demand

  • Ibstock said that the delayed roll out of the scheme was disappointing and has put additional pressure on near-term demand

  • The company expects annual adjusted core profit in the mid-£40 million range, compared to the lower end of £59 million to £68 million range forecast earlier

  • Ibstock said weak market conditions continued through September and October, and squashed expectations for a second-half recovery

  • Its third quarter production was cut by about 20% against Ibstock's plans set in the half-year, to save costs and better reflect the falling brick sales


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