25th Jan 2023 10:56
(Alliance News) - Forterra PLC on Wednesday said it expects 2022 results ahead of management expectations, as it hopes to benefit from UK population growth amid an undersupply of housing.
The Northampton, England-based building product manufacturer predicted full year revenue of around GBP450 million, up around 21% from GBP370.4 million a year earlier.
Forterra said 2022 sales volumes regarding its brick and block products were line with 2021.
For 2023, it expected a significant increase in energy costs compared to 2022. The company increased brick selling prices by about 50% during 2022, and expects further price rises.
It also expects to benefit from an "attractive" long-term UK market, driven by UK population growth during a time of housing crisis.
Looking ahead, Chief Executive Stephen Harrison says: "There is considerable uncertainty as to the outlook for the UK housing market and accordingly, demand for our products in the coming year. We did see signs of softening demand towards the end of 2022 and we are waiting to see how our customers' spring new house selling season develops as the outcome of this is likely to be a key determinant of demand for our products during 2023."
The company aims to issue 2022 results on March 9.
Forterra shares were 4.9% higher at 215.50 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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