Wednesday, September 23, 2020

Results “heavily impacted by COVID-19” at Forterra

“Unprecedented challenges” in the first half of 2020 have seen revenue and profit fall at Northamptonshire-headquartered producer of manufactured masonry products, Forterra.

As a result of COVID-19, according to results for the six months ended 30 June 2020, revenue slumped to £122.4m, in comparison to £193.6m in the same period of 2019.

Meanwhile a profit of £32.7m in 2019 dropped to a loss of £23.3m in 2020.

Forterra has said however that trading since emerging from lockdown through to the end of August has exceeded management expectations.

Stephen Harrison, Chief Executive Officer, said: “The Group faced unprecedented challenges during the first half and I would like to thank all our employees and other stakeholders for their collaborative approach in overcoming the challenges we faced through this period.

“Inevitably, our results were heavily impacted by COVID-19 and the associated lockdown. We took swift action to ensure the wellbeing of our employees as demand for our products fell dramatically and we ceased production at the majority of our facilities. We also acted decisively to manage our cost base and ensure sales and production remained balanced. We have now substantially completed a range of restructuring actions and production has now resumed at all our factories.

“I am pleased to report that trading since emerging from lockdown has exceeded management’s expectations and we remain very confident in the long-term recovery of our markets.

“Subject to a continuation of current trading conditions and there being no further COVID-19 driven disruption, the Board expects full year EBITDA, stated before exceptional items, to be in the range of £27m-£32m. The Board will continue to monitor our key markets and the economy more generally and believes that the Group’s strong balance sheet, reinforced by the recent equity placing and refinancing, provides both the resilience and agility required in these unprecedented times.”

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