Revenue and profit have dipped at Forterra, the manufacturer of clay and concrete building products.
According to full year results for 2023, revenue slid from £455.5m in 2022 to £346.4m.
Meanwhile, profit before tax declined from £70.6m to £31.1m.
Neil Ash, Chief Executive Officer, said: “Forterra produced a resilient performance in 2023, in what turned out to be a very challenging year for our industry. Demand for new housing in the UK fell substantially, driven by increasing interest rates adversely impacting affordability and therefore demand for new homes.
“In light of this lower demand management took decisive action on our cost base. Assuming 2024 demand remains consistent with 2023, our management actions will ensure output is broadly matched with sales, thus limiting future inventory build.
“Importantly, however, these temporary reductions will not impact our ability to respond quickly when our markets recover. Indeed, one bright spot during 2023 was the commissioning of the new Desford brick factory, which gradually ramped up production throughout the year, and which will provide a significant capacity uplift in improved markets.
“With the long-term under-supply of housing in the UK continuing to worsen, and with our previous capacity constraints now addressed, the Board remains confident in the Group’s ability to benefit as our key markets recover.”
During the year production was reduced through the mothballing of factories, shift reductions and production breaks. In addition, Forterra restructured commercial and back-office functions.
These actions are set to deliver annualised fixed costs savings in excess of £20m, with around £6m realised in 2023 and the balance being realised in 2024.
