(Sharecast News) - Building products manufacturer Ibstock said on Thursday that sales volumes in the first quarter were lower than expected as activity in residential markets remained subdued.
Ibstock said trading conditions "remained challenging", with weaker end market demand in part reflecting the exceptionally wet weather across the UK during the early months of the year.
Despite weaker volumes, the company said a strong performance across its cost reduction actions, commercial discipline and operational execution enabled it to deliver adjusted EBITDA in line with its expectations.
Chief executive Joe Hudson said: "Trading conditions remained challenging in the first quarter. Against this background, adjusted EBITDA for the period was in line with our expectations, supported by our disciplined action on costs and strong operational execution.
"While we expect market demand to remain subdued in the near term, lead indicators reflect an increase in housing market activity, which offers encouragement for an improvement in volumes in due course.
"Our medium-term prospects remain strong, underpinned by our robust balance sheet, well invested manufacturing network and leading market positions. We have the capability to take advantage of opportunities against the current subdued backdrop, and the business is well placed to achieve strong, profitable growth as our markets recover."
Ibstock (IBST)