Forterra plc Trading update (6227Q)
October 22 2019 - 1:00AM
UK Regulatory
TIDMFORT
RNS Number : 6227Q
Forterra plc
22 October 2019
22 October 2019
Forterra plc
Trading update
Forterra plc, a leading UK producer of manufactured masonry
products, provides this trading update covering the period from 1
July 2019 to date.
While volumes into the new build housing market have remained
broadly in line with plan, trading in relation to distributors and
non-residential applications has slowed. Key indicators such as UK
national brick sales volumes, construction output, new housing
starts, housing transactions and consumer confidence also point to
further uncertainty in macroeconomic conditions.
The Group's sales volumes have been affected by this recent
weakening of activity, with brick and block volumes down in line
with the overall market. Precast concrete sales have slowed in
recent weeks despite good growth earlier in the year. Whilst a
sustained improvement in productivity has now been achieved, the
Bison precast business is unlikely to deliver the level of margin
growth anticipated in the second half as a result of delays in a
number of large contracts.
As a result of the above factors, and recognising the current
macroeconomic uncertainty, the Board now expects profit before tax
to be modestly below last year's result (2018: GBP64.8m).
The Group continues to generate strong operating cashflows to
support capital investment and the previously announced increased
dividend payout. Construction of the new brick facility at Desford,
at an investment of GBP95m, is progressing to plan with site
clearance completed and work commenced on preparing the building
foundation. As previously indicated, the new plant is expected to
commence full production during 2022.
Despite the short term political and economic uncertainty, the
Board remains confident in its strategy and believes that the
business is well positioned to benefit from attractive market
fundamentals over the medium term.
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
TSTBIBDGCBDBGCB
(END) Dow Jones Newswires
October 22, 2019 02:00 ET (06:00 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