Forterra, the manufacturer of clay and concrete building products, has hailed a “resilient” first half despite a drop in profit and revenue.
In a trading update for the six-month period ending 30 June 2023, the business said the results were “broadly in line with expectations,” and “delivered against a backdrop of challenging trading conditions.”
Revenues for the period are anticipated to be approximately £183m, a decrease of 18% relative to the prior year (2022: £222.8m), while the firm is expecting to report an adjusted profit before tax of approximately £18m, down from £37.3m last year.
Forterra said progressive signs of market improvement were seen through May and June, but this improvement has been less pronounced than previously anticipated.
In response to the challenging market conditions, and with its brick production capacity increasing with the opening of the new Desford factory, Forterra has mothballed its Howley Park brick factory and implemented other production reductions which will reduce fixed costs by around £10m on an annualised basis.
In addition, the company is consulting with affected individuals on a restructuring of commercial and support functions, aligning them to anticipated demand, which Forterra expects to save approximately £3m annually.
