Brick and tile maker Michelmersh Brick Holdings Plc (LON:MBH) is confident it can grow market share in forthcoming years but current negative trends mean it has lowered expectations for the full year.
The firm, which is also a landfill operator, believes revenue and profit for the year to end December will be around a similar level as seen in 2015.
The UK brick market has experienced falling output and average selling prices have gone down in 2016 suggesting there will be little or no recovery in prices at the start of 2017, the firm said.
Meanwhile, changes in the materials market mean it has had to re-source carbon additive used in brick manufacturing at its Freshfield Lane facility in Haywards Heath.
This was successfully achieved but higher levels of output enjoyed over recent periods are likely to be slightly reduced going forward, the company said.
The order book remains robust at 5% ahead of at the half year stage, while cost savings have also been identified to mitigate the effect of negative market trends.
Cash flow is strong and Michelmersh expects to meet or exceed management's previous cash expectations at year end.
"Our cash resources and cash generation allow us to seek investments that improve efficiency and continue to reward investors with a steady growth in dividends," it added.
"The board reaffirms that strong long-term housebuilding and RMI market fundamentals remain in place for the forseeable future and that the group is well positioned to grow market share in the coming years."