|
Forterra PLC on Tuesday maintained its full-year guidance as it reported 16% revenue growth in the year-to-date. The Northampton, England-based clay and concrete product manufacturer said in the 10 months to the end of October, revenue was 16% ahead of the prior year at £336 million compared to £290 million. The firm said tougher prior year comparatives along with a moderation of demand has resulted in revenue growth over the last four months reducing to 10% compared to the 20% reported in the first half. It said new build housing continues to be its strongest market segment, with repair, maintenance & improvement ‘remaining depressed’. As a result, Forterra said it continues to benefit from its greater exposure to extruded or wire cut bricks over soft mud. The company said it is continuing to ‘actively managed’ its production capacity as demand is varying significantly by product type. Forterra expects that year-end net debt before leases will be below the level at the end of the first half of the year. Construction at the Wilnecot factory is nearing completion, the firm said, with commissioning underway and the first bricks expected to be produced before the end of 2025. The firm said it has also made ‘good progress’ in designing and commissioning the first range of brick slips from its Accrington facility, with the first range due to be launched shortly. Forterra said it has carried out the previously announced closure of its Bison Bespoke and Formpave operations. The company expects that despatches and revenue in the second half will be at similar levels to the first. Consistent with its previous guidance, Forterra expects adjusted earnings before interest, tax, depreciation and amortisation to be ‘modestly ahead’ of the figure for the first half. ‘Whilst we remain mindful of the continued economic uncertainty and the impact it is having on current demand, the medium-term market fundamentals remain attractive with a shortage of housing, a strong desire within government to address this, and a constrained supply of essential building products,’ Forterra said. ‘The board remains confident that our recent investments in new production capacity leave the group well placed to benefit from a future recovery of our markets.’ Shares in Forterra were up 1.6% at 184.00 pence on Tuesday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
