Ibstock, a manufacturer of clay bricks and concrete products revealed a strong drop in demand for its goods as the pandemic struck.
With its housebuilding and construction clients closing sites due to the pandemic – Ibstock saw group revenues drop 10% for the three months to March 2020 but more worryingly, saw sales plummet 75% in the two months after march to 31st May 2020.
As restrictions eased in recent weeks, the company has seen some improvements in trading conditions. However, it claimed that measures to improve its financial resilience should see it through to recovery as then market picks up:
“Current trading conditions remain difficult but the combination of the cost reductions, restructuring measures and improved liquidity have strengthened the Group’s ability to meet current challenges and benefit from the eventual recovery in its core markets.
As a result of current unprecedented levels of uncertainty, it is not possible to provide an accurate assessment of the trading outlook for the current year, and accordingly, guidance remains withdrawn.”Ibstock Trading Update
Shares in the company edged higher by 0.7% following the update.