Forterra plc Trading Update (9493F)
November 01 2018 - 2:00AM
UK Regulatory
TIDMFORT
RNS Number : 9493F
Forterra plc
01 November 2018
This announcement contains inside information and is disclosed
in accordance with the Company's obligations under the Market Abuse
Regulation (EU) No 596/2014
1 November 2018
Forterra plc
Trading update
Forterra plc, a leading UK producer of manufactured masonry
products, provides this trading update covering the period from 1
July to 31 October 2018.
Trading in the period has been in line with expectations,
underpinned by good levels of activity in the new build residential
sector, with brick sales on a year to date basis being marginally
ahead of prior year. Sales of precast concrete products have
improved as previously anticipated and whilst capacity utilisation
has increased at the newly acquired Bison Swadlincote facility,
further improvements in productivity are being pursued.
During the period, the Group has continued to absorb significant
cost pressures, especially from rising prices of energy, fuel and
carbon credits (required under the terms of the EU Emissions
Trading Scheme), and the impact of the lower productivity at
Bison.
The Group continues to generate a strong level of operating
cashflow and net debt at 30 September 2018 was GBP56.1m compared
with GBP60.8m at the start of the year reflecting also capital
expenditure, dividend payment and the ongoing share purchase
programme.
Following a recent overheating of the kiln at the Group's
Desford brick manufacturing facility, resulting from a prolonged
power outage, it has become necessary to shut the kiln for repair
for approximately six weeks. After a detailed inspection, the
Company considers a full rebuild of the damaged sections of the
kiln, rather than temporary repair ahead of the next planned
shutdown, to be in the medium term the most prudent and
cost-effective option. The impact on current year operating profit
of lost production and sales and the cost of repair is estimated to
be between GBP2m to GBP3m.
As a result, the Board now anticipates that profits for 2018
will be marginally below its previous expectations.
Enquiries
Forterra plc: +44 (0) 1604 707 600
Stephen Harrison (CEO)
Shatish Dasani (CFO)
FTI Consulting: +44 (0) 20 3727 1340
Richard Mountain
Nick Hasell
Further information relating to the Company and its group can be
found at www.forterraplc.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTBCBDGSBXBGIB
(END) Dow Jones Newswires
November 01, 2018 03:00 ET (07:00 GMT)
Forterra (LSE:FORT)
Historical Stock Chart
From Apr 2024 to May 2024
Forterra (LSE:FORT)
Historical Stock Chart
From May 2023 to May 2024
