Forterra says revenue hit by housing slowdown
Brickmaker Forterra said revenue in the first four months of the year slipped nearly a quarter from the same period last time.
In a trading update this morning, the firm said revenue was down 24% to 拢109m adding that it expected a 20% fall in full year market demand compared to 2022.
At its annual results in March, the firm warned investors of weaker trading in the year ahead as housebuilders build fewer homes.
But it said improved housebuilder reservation rates in the second half of the year 鈥減rovide cause for optimism and an improving outlook for H2 2023 and into 2024鈥�.
It added this year鈥檚 annual results would be 鈥渨eighted towards H2 reflecting the anticipated improvement in market conditions鈥�.
Forterra鈥檚 new 拢95m brick factory at Desford in Leicestershire will open tomorrow and will eventually see the firm鈥檚 brickwork production rise from 80 million bricks a year to 180 million.
In its 2022 results, the brickmaker reported revenue of 拢456m, a rise of 23% on the number it posted in 2021, and a pre-tax profit of 拢73m, up 28% from 拢57m.
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