10th Sep 2020 11:13
(Alliance News) - Forterra PLC on Thursday said it expects its annual earnings to fall by more than a half after it swung to loss in the first half of 2020.
The masonry products manufacturer reported revenue of GBP122.4 million for the six months to the end of June compared to GBP193.6 million a year earlier, resulting in pretax loss of GBP23.3 million versus GBP32.7 million profit.
Forterra said its results were hurt by Covid-19. Exceptional items of GBP21.0 million include non-cash impairment charges of GBP16.2 million, restructuring costs of GBP4.4 million and debt-refinancing costs of GBP400,000.
"We took swift action to ensure the wellbeing of our employees as demand for our products fell dramatically and we ceased production at the majority of our facilities. We also acted decisively to manage our cost base and ensure sales and production remained balanced," said Chief Executive Stephen Harrison.
Going forward, Forterra said trading since emerging from lockdown through to the end of August has exceeded management expectations although uncertainties remain.
July and August sales revenue highlight encouraging recovery at 89% and 82% of prior year, respectively.
Subject to a continuation of current trading conditions and there being no further Covid-19 driven disruption, the board expects full year earnings before interest, tax, depreciation and amortization, stated before exceptional items, to be in the range of GBP27 million to GBP32 million.
A year ago, the company's Ebitda totalled GBP78.4 million.
Forterra shares were trading 13% higher in London on Thursday at 191.52 pence each.
By Evelina Grecenko; [email protected]
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