Ibstock tumbles on profit warning

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Ibstock tumbles on profit warning
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Brick maker Ibstock (LON:IBST) saw its shares tumble 31.4p to 246.6p (as at 11:26 BST) after it warned that full-year profits would be lower than previously guided due to a production bottlekneck in addition to the earlier weather problems and ongoing higher energy costs.

For the first six months of the year, the company said it expects adjusted earnings before interest, tax, depreciation and amortisation to be roughly £58 million, subject to final audit, which would be a 3% decline from the £59.7 million a year earlier.

However, cash generation has remained strong and management assured shareholders that the interim dividend and a proposed supplementary dividend will not be affected.

Despite the setback, Chief Executive Officer Joe Hudson said demand in the UK brick market remains “robust”.

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