Clay brick maker Ibstock (LSE: IBST) saw its annual profit plummet 71% to £30.1 million in 2023, hit by lower revenue and restructuring charges.
The company attributed the decline to a combination of factors, including lower underlying operating profits and a £30.8 million exceptional charge related to its cost-saving restructuring plan.
To adjust to lower demand, Ibstock temporarily reduced capacity across its business, including headcount cuts and the permanent closure of its brick factory in South Holmwood, Surrey.
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Revenue also took a hit, falling 21% to £405.8 million in 2023 due to “significantly lower activity levels” in the company’s core residential building markets.
These factors led to a 75% drop in earnings per share to 5.4 pence and a 20% reduction in the annual dividend to 7.0 pence per share.
Looking ahead, Ibstock said trading conditions in early 2024 have been subdued, but it expects to see improvement later in the year. Despite the profit plunge, the company’s share price remains up 3% year-to-date, although it was down 3.2% by late morning Wednesday.
