Brickmaker plunges to 拢52m pre-tax loss
Ibstock has confirmed it is cutting up to 375 jobs after the covid-19 lockdown sent the firm nosediving to a 拢52m pre-tax loss in the first half of this year.
The brickmaker said it would close or mothball three clay manufacturing plants under the restructuring which will cost the firm 拢10m this year. It said the move will save it 拢20m a year from 2021.
It said in June that it had begun consultations with 375 employees, around 15% of its workforce, which in interim results announced this morning said would be completed by the year-end.
It has also put on hold a planned 拢45m overhaul of its Atlas clay brick manufacturing facility near Walsall in the West Midlands.
It said demand for clay bricks collapsed by 90% during April, the first full month of lockdown, while sales at its concrete arm, which include roofing and flooring products, were off by 70% during the month.
The firm said these had recovered last month to 80% for clay and around 85% in concrete compared to prior year levels.
But it added: 鈥淲hile trading conditions have continued to improve, significant covid-19 uncertainty persists and so it remains difficult to predict what the outcome for the year will be.鈥�
Revenue during the period was down 36% to 拢131m with pre-tax profit sinking from a 拢41m profit last time to a 拢52m pre-tax loss.
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