Forterra, the manufacturer of clay and concrete building products, is remaining positive, despite a slide in EBITDA and revenue in 2024.
According to a trading update for the year ended 31 December 2024, the Northamptonshire business saw a modest improvement in trading conditions in the final months of the year, with despatches remaining resilient in the run up to Christmas when there is often a more pronounced slowdown.
Full year revenue was slightly below the prior year at £345m (in comparison to £346.4m in 2023), with a double digit increase in second half revenue relative to both the prior year and the first hald of 2024. Forterra noted it had benefited from volume gains in some of its concrete products with brick volumes flat year on year. The business added: “We have continued to maintain pricing discipline with selling prices remaining relatively stable across our product range.”
Adjusted EBITDA, meanwhile, is expected to be around £50m, down from £58.1m in 2023.
Looking ahead, the business told the London Stock Exchange: “Whilst we now see signs of modest improvement in our markets, recent heightened macro-economic uncertainty dictates that the timing and trajectory of the recovery remains uncertain.
“We continue to take encouragement from the Government’s ambition to materially increase housebuilding but remain wary of the challenges in delivering this. We look forward to the Government considering wider levers to stimulate both supply and demand for new housing and in the short term we are watchful as to any impacts arising from the changes to Stamp Duty on 1 April 2025 which will influence housing affordability.
“We continue to anticipate modest levels of cost inflation heading into 2025, including Employers’ National Insurance contributions as outlined in the Autumn Budget. We have secured around 85% of our energy requirements for 2025 and have good levels of coverage for 2026 and 2027. To mitigate cost increases we have announced selling price increases for 2025 with customer discussions continuing.
“The Group remains well placed to capitalise on a recovering market with our £140m programme of strategic investment in our facilities at Desford, Wilnecote and Accrington nearing completion and providing a 15% increase in brick manufacturing capacity and improved efficiency relative to the previous cycle.”
