Forterra, the manufacturer of clay and concrete building products, says it is “well positioned to withstand continuing uncertainty” after a “strong 2022 result.”
According to a trading update for the year ended 31 December 2022, results are expected to be slightly ahead of management’s expectations and also above pre-pandemic comparators.
Full year revenue of £450m is anticipated, 21% ahead of 2021 (£370.4m).
Stephen Harrison, Chief Executive of Northampton-based Forterra, said: “We are pleased with our strong performance in 2022 against a backdrop of severe cost inflation.
“There is considerable uncertainty as to the outlook for the UK housing market and accordingly demand for our products in the coming year. We did see signs of softening demand towards the end of 2022 and we are waiting to see how our customers’ spring new house selling season develops as the outcome of this is likely to be a key determinant of demand for our products during 2023.
“We remain confident that Forterra is well positioned to face this more challenging environment. The UK brick industry is ideally placed to displace imported products should demand fall, and with our new Desford factory we expect to benefit from the industry-leading efficiency this will offer. Alongside this, we retain a strong balance sheet with minimal debt.
“In the medium term we continue to expect to benefit from the attractive long-term UK market fundamentals of population growth, housing undersupply, a shortage of domestically-produced bricks and an increasing focus on the quality of housing stock.”
