Forterra, the manufacturer of clay and concrete building products, is “pleased” with its results for the four months ending 30 April 2023.
Pre-tax profits in the period were in line with management’s expectations, while revenue of £109m represented a decrease of 24% on the prior year (2022: £143m).
It comes as Forterra anticipates a fall in demand relative to 2022, with results for the full year expected to be weighted towards the company’s second half, reflecting improvement in market conditions.
Neil Ash, Chief Executive of Forterra plc, said: “Trading conditions in the period have been challenging and we are therefore pleased to deliver a result in line with our expectations.
“Our expectations for the year are based upon an underlying fall in market demand of 20% relative to 2022. With the inventory reduction within our customer base still ongoing, the decline in demand we have seen in the period is greater than 20%. However, we do expect demand will improve as the year progresses, noting the improving conditions cited by the housebuilders over recent weeks.
“We have already taken proactive steps to manage our production capacity and cost base, as we seek to maximise the benefits of the new Desford factory and the industry leading efficiencies it will provide.
“Our other growth investments at Wilnecote and Accrington are both progressing well.
“We believe the Group is well placed to meet the short-term challenges we face and remain confident in the medium to long-term fundamentals of our markets. This confidence is underpinned by a longstanding shortage of housing supply, the strong cross-party political support for housebuilding and a long-term deficit of domestic brick production capacity.
“Subject to market conditions improving in line with our projections we continue to anticipate delivering a full year result in line with our expectations with the result weighted towards H2.”
