In what was predicted to be a slower start to 2023, Q1 volumes were lower than the same period last year, in line with our forecast. More positively, we have ended Q1 ahead of our expectations and, as we move into Q2 we remain well placed to support growth, we are cautiously optimistic that confidence will begin to grow within our core markets over the coming months.

Demand across the principal sectors with which our products are typically aligned such as Residential and RMI/change of use has been weaker. It has been widely reported that the rising cost of living and overall fall in consumer confidence has resulted in homeowners reducing their level of spend on non-essential RMI projects.

In private housing, the lack of any further government stimulus in the spring budget alongside increasing mortgage rates and the end of schemes such as Help to Buy, has put further pressure on the residential sector. According to the latest CPA Construction Industry Forecast, demand in Q4 2022 fell by around 30%-40% compared with a year earlier. Housebuilders, however, report that demand is expected to recover after a slow start, albeit from that low base, and the recovery will be slow.

At British Gypsum, our product availability and supply continues to be robust. While we are still operating in challenging market conditions, we are now experiencing less price volatility than in 2022, which supports our customers’ ability to plan with more confidence.

We have made investments in our logistics capacity and wider supply chain, which is demonstrated by our ability to consistently maintain short lead times. We are leading the way in future-proofing our distribution network with a focus on delivering into our distribution and merchant partners in an efficient, safe, and sustainable way.

To also emphasise our deep commitment to our sustainability goals, we recently published our ‘On the road to net zero carbon’ plan up until 2025. As we work towards net zero carbon by 2050, this plan sets out ambitious targets and outlines ways in which we will, for example, decrease CO2 in our manufacturing, increase the recyclability of our products and, importantly, demonstrate how we will support our customers in their sustainability journey.