Yahoo Finance Brickability: Shares slump as construction slowdown forces lowering of expectations
Shares in Brickability Group slumped over nine per cent this morning after the board noted a slowdown in demand for building materials.
In an update this morning, the supplier of bricks and other construction goods said lower levels of demand are expected to persist for the rest of the year.
As a result, the firm said it would have to lower its profit expectations for the rest of the financial year.
The group forecast adjusted EBITDA of £46.2m with a range of £44.8m to £47.2m. It is now poised to come in at the lower end of expectations.
Market volumes for bricks in the UK have been significantly lower in the last twelve months, the group said, with UK despatches for the calendar year 2023 approximately 30 per cent lower than 2022.
Over the same period, brick imports into the UK are estimated to have fallen by 42 per cent.
A slowdown in demand for homes, due to high inflation and a strain on living costs, has impacted the entire ecosystem of the UK construction industry.
Alan Simpson, chief executive officer, said: “We have maintained a disciplined approach to cost and cash management during this period, and I am confident the group is extremely well positioned across each of its divisions to benefit when activity in its end markets recover.
