With a dip in revenue and profit, Forterra, the manufacturer of clay and concrete building products, has hailed “a solid performance in the first half of 2024, despite a continuing backdrop of challenging market conditions.”
For the six months ended 30 June 2024, group revenue stood at £162.1m, down from £183.2m in the same period of 2023. Meanwhile, the firm posted an adjusted profit before tax of £9.1m, dropping from £19.2m.
It comes as UK brick industry despatches in the first half of the year are estimated to have fallen approximately 9% relative to the prior period, with Forterra’s own brick despatches in line with this. Moreover, competitive market conditions are restricting the business’s ability to implement its planned price increases.
Neil Ash, Chief Executive Officer, said: “The Group delivered a solid performance in the first half of 2024, despite a continuing backdrop of challenging market conditions. Decisive management actions assisted in producing a result in line with our expectations and a better than expected net debt position at the period end.
“We are encouraged by the new Government’s focus on significantly increasing housing supply which will clearly provide medium to long-term structural benefits for Forterra. Our strategic investment in Desford and Wilnecote addresses previous capacity constraints and positions us well to satisfy increased demand for our products.
“While the short-term outlook remains challenging, as we look further ahead the Group is well positioned to capitalise on the recovery of our key markets as it occurs.”
