Ibstock holds guidance despite lower brick demand in Q3

Brick and building materials maker Ibstock maintained annual guidance despite lower volumes as higher prices and cost controls offset weaker demand in the housebuilding market.

In a trading update, Ibstock said it would continue to actively manage capacity and costs to " ensure that our capacity is aligned to market demand, whilst ensuring we are well positioned to respond when activity levels recover".

"Residential construction markets are expected to remain subdued in the near term. Notwithstanding this more cautious outlook we remain confident in our ability to continue to respond appropriately to market conditions. Furthermore, we will continue to progress the strategic initiatives that will underpin growth over the medium term," the company said on Wednesday.

"The strength of our balance sheet continues to provide both resilience in more subdued conditions and strategic optionality for the future. This is reflected in our ongoing commitment to capability and growth investment, with key projects progressing well. We continue to expect our new Atlas factory to commission from the end of 2023, and to bring to market the UK's first certified carbon-neutral brick in 2024."

Reporting by Frank Prenesti for Sharecast.com