12th Mar 2019 11:20
LONDON (Alliance News) - Masonry products firm Forterra PLC on Tuesday reported a solid set of 2018 figures, with its outlook remaining confident despite economic and political worries.
Forterra posted pretax profit of GBP64.8 million for 2018, up 9.3% year-on-year. Stripping out exceptional items, the figure rose 6.1%.
Revenue climbed 11% to GBP367.5 million, due in part to a "modest" increase in volumes on the back of continue strength in the UK new-build residential market.
Forterra has managed to slash its net debt, as of the end of December, by 36% to GBP38.8 million, on the back of "strong" cash flow.
It is to pay a final dividend of 7.2 pence per share, taking the total for 2018 to 10.5p, 11% higher year-on-year, in line with its policy.
"2018 was a year of good progress for the group, with a strong performance from the Bricks & Blocks businesses and the integration of Bison gaining traction following a slow start," said Chief Executive Stephen Harrison.
"We also approved a GBP95 million investment to build a new brick manufacturing facility that will increase our existing capacity by 16%."
Looking ahead, trading so far in 2019 has been solid, with price increases agreed with most customers to cover higher costs for Forterra. Based on its current order book, and indications from major customers, expectations for 2019 are unchanged.
"Whilst we are watchful of the impact of the current political and economic uncertainty on our end markets, the board remains confident the business is well positioned to take advantage of the attractive market fundamentals in order to continue delivering sustainable shareholder value," added Harrison.
Bricks & Blocks, which makes up most of Forterra's revenue, increased earnings before interest, tax, depreciation, and amortisation by 9.7% to GBP75.8 million, as revenue rose 8.0% to GBP269.4 million.
Bespoke Products Ebitda slumped 52% to GBP3.0 million despite revenue growth of 20% to GBP100.3 million, due to a slower-than-hoped integration of a new precast site as well as first half weather delays.
Forterra shares were trading down 1.7% on Tuesday, at a price of 290.50 pence each.
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