Forterra, the Northampton-headquartered producer of manufactured masonry products, has reported “strong” trading in 2021, with results slightly ahead of market expectations.
Revenue grew to £370.4m from £291.9m in 2020, while the firm posted a pre-tax profit of £50.7m, up from £17.4m.
The company noted that construction of its new Desford brick factory remains on track and is expected to deliver a 22% effective increase in brick production output from 2025.
Stephen Harrison, Chief Executive Officer, said: “We delivered a good financial performance in 2021, with strong trading throughout the year and full year results slightly ahead of expectations.
“Our markets continued to recover from the effects of the pandemic, with our brick sales volumes similar to 2019 and further growth only limited by production capacity and available inventory.
“We continued our programme of organic investment, with the construction of our new Desford brick factory remaining on track for commissioning at the end of this year, our Wilnecote refurbishment proceeding to plan; and new investments in Accrington and solar power generation announced today. We remain disciplined in our capital allocation and have maintained our progressive dividend policy whilst commencing a share buy-back programme and retaining balance sheet flexibility for bolt-on acquisitions.
“Our order book remains strong and, although inflationary pressures continue, we remain confident of recovering these through selling price increases.
“We remain watchful as to the impacts of increasing macro uncertainty and supply chain pressures as well as increases in interest rates. Approximately 70% of the Group’s 2022 energy requirements have been secured.
“With market conditions remaining highly supportive, and Desford now expected to deliver a 22% effective increase in brick production and increased incremental EBITDA of £25m from 2025, we are confident that the Group will achieve further progress in the coming year and beyond.”
