Profit before tax at Ibstock has fallen by 60% year-on-year in the first half of its financial year, reaching £12m in the six months to 30 June.

The UK manufacturer of building products and solutions also saw its revenue drop by 20% to £178m in the same period, as a result of lower market demand, its “principled approach to pricing” and wet weather in the early part of the period.

In this time, its earnings per share fell by 61% to 2.2 pence per share, and its EBITDA dropped by 40% to £38m.

However, the firm said that this was in line with expectations with the period against the backdrop of "continued market challenges".

Chief executive officer at Ibstock, Joe Hudson, said: "Market conditions remained challenging in the first half, as expected, with sales volumes below those reported in the comparative period. We delivered a solid profit performance for the period which reflected our ongoing focus on the active management of cost and margin.

"Lead indicators point to an improving sector picture, and although we are taking a cautious view of the extent to which this will translate into a demand improvement in the balance of the year, we expect adjusted EBITDA for the second half of the 2024 year to be broadly in line with the comparative period in 2023."

In its outlook, Ibstock said that with the new Government focusing on new housing and infrastructure, there is a "more positive backdrop for housing industry supply chains", stating that it is encouraged by signs of an "improving trend in sector lead indictors".

It added that it remains focused on taking action to respond to prevailing market conditions and will continue to manage its cost position carefully.

Hudson added: "The new Government's commitment to increasing the supply of new homes creates a more positive backdrop for medium term demand, and the group remains well-positioned for market recovery.

"Our investments over the last few years have added high quality, lower cost, efficient and more sustainable capacity to our network and developed new capabilities for the group in diversified construction markets, while also creating a leaner, more customer-focused business. We believe this will be a powerful combination as market conditions improve.

"The fundamental drivers underpinning demand in our markets are firmly in place and our prospects remain strong, underpinned by our robust balance sheet."

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