Revenue has dropped at Forterra, the manufacturer of clay and concrete building products, according to a trading update for the year ended 31 December 2023.
With weak demand, full year revenue totalled £345m, down from £455m in 2022.
Despite challenging market conditions, however, the business does expect to report full year adjusted EBITDA slightly ahead of expectations.
During the year, faced with increasing inventory levels, Forterra made reductions to production, with the mothballing of factories, shift reductions and production breaks. The business has also looked to deliver savings through restructuring commercial and back-office functions. Such management actions during the year are set to deliver annualised fixed costs savings of over £20m.
Looking ahead Forterra said: “The outlook for our industry remains subject to considerable uncertainty and, with a general election expected in 2024, demand is anticipated to remain subdued in the near term.
“However, with the long term under supply of housing in the UK continuing to worsen, and UK brick despatches now running at levels last seen in 2009, the Board remains confident in the Group’s ability to benefit as our key markets recover.
“Recent reductions in mortgage interest rates will improve the affordability of new homes, thus increasing demand for our products.“
