Forterra, the Northamptonshire-based producer of manufactured masonry products, has hailed a strong trading performance in the four months ended 31 October 2021, with brick sales volumes up 6% vs 2019.
The business is expecting to deliver a 2021 result in line with management’s expectations.
In a trading update the company added that significant cost inflation was being experienced across a range of categories including energy, raw materials and transportation.
It noted that to recover cost inflation, concrete product selling price increases have already been achieved with significant brick price increases secured from 1 January 2022.
Stephen Harrison, Chief Executive of Forterra plc, said: “The strong trading seen in the both the housebuilding and repair maintenance and improvement (RM&I) markets in first half of the year continued into the second half. As expected, we encountered significant pressures across our supply chain in the period, although, due to the agility of our operational management, we have been successful in limiting any disruption.
“We also experienced meaningful input cost inflation, which has had a short-term impact on margins, however we are mitigating this through significant selling price increases. Notwithstanding these factors, we continue to anticipate delivering a full year result in line with management’s expectations, with higher than expected revenues offsetting the increased cost base.
“Heading into 2022 we are optimistic about the continuing buoyant demand for our products, underpinned by favourable market fundamentals. With the brick capacity uplift provided by the new Desford brick factory now only a year away, and with the Wilnecote project increasing our presence in the commercial and specification market from 2023, we are confident that group performance will continue to strengthen.”