30th Jul 2024 20:18
Forterra PLC - Northampton, England-based building product manufacturer - Endures "challenging trading conditions" in the first half of 2024, with revenue declining 12% to GBP162.1 million from GBP183.2 million a year prior. Its pretax profit declines 29% to GBP12.8 million from GBP18.1 million. Forterra cuts its interim dividend by 58% to 1.0p per share from 2.4p. "With softer comparatives, the expected 9% reduction in UK brick despatches seen in H1 is expected to improve in H2; although overall, full year 2024 demand is expected to be lower than 2023," it cautions. It now expects adjusted earnings before interest, tax, depreciation and amortisation of GBP50 million for the whole of 2024, a decline of 14% from 2023. Forterra's adjusted Ebitda in the first-half fell 22% on-year to GBP24.3 million.
Encouraged by the new Government's commitment to increase housing supply and remains confident that the group is well positioned to capitalise on a recovery of its key markets in due course. "While the short-term outlook remains challenging, as we look further ahead the group is well positioned to capitalise on the recovery of our key markets as it occurs," company says.
Current stock price: 172.40 pence
12-month change: up 0.2%
By Jeremy Cutler, Alliance News reporter
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