Ibstock has slashed its annual dividend payout as profit and revenue fell amid “subdued market conditions.”
The London-listed brickmaker reported a near third drop in pre-tax profit to £21m for the year ended 31 December.
Ibstock said the figure reflected “lower trading performance” and the impact of a one-off £12m charge.
Revenue declined 10 per cent to £366m amid a slowdown in sales.
The group blamed a “subdued” market backdrop for the performance as it cut total dividends by nearly half, to 4p per share.
Earnings per share also fell year-on-year by 30 per cent, to 3.8p.
Despite the challenges, Ibstock said it had seen progressive improvement in sales through the second half of 2024 and maintained a positive outlook for 2024.
“We expect an improvement in market volumes in 2025, with momentum building through the year,” chief executive Joe Hudson said.
“Ibstock is well-positioned for a market recovery, and the fundamental drivers of demand in our markets remain firmly in place.
He added: “We see a significant opportunity for a new era in housebuilding in the UK and with the investments we have made and our market leadership positions, the group remains well placed to support and benefit from this over the medium term.”
Shares are down around 14 per cent this year to date and the firm will also have to grapple with a 21 per cent year-on-year increase to its debt pile, which sits at £122m.
Hudson described the 2024 performance as “resilient.”
“The effective management of pricing and volumes throughout the year underpinned resilient margins combined with market share gains through the latter part of the 2024 year.”