Ibstock profits fall as housing market cools

Building materials supplier Ibstock reported a fall in first-half earnings as the housing market cooled due to higher mortgage costs.

Pre-tax profit fell 42% to £30m, including an exceptional cost of around £11m from the potential closure of a clay site.

Revenue was down 14% to £223m, reflecting reduced activity levels in residential markets, although Ibstock said selling prices remained firm.

The interim dividend was lifted 3% to 3.4 pence per share.

"While recent macroeconomic events have introduced greater uncertainty into the outlook, we remain confident in our ability to respond to market conditions and the board's expectations for the full year are unchanged," the company said on Wednesday.

Reporting by Frank Prenesti for Sharecast.com