30th Jul 2019 10:20
(Alliance News) - Masonry building products firm Forterra PLC on Tuesday reported a solid interim performance, though profit growth was held back by higher costs.
Forterra posted pretax profit of GBP32.7 million for the six months to June, up 1.2% on a year before, with revenue rising 7.6% to GBP193.6 million.
The company boosted its interim dividend by 21% to 4.0 pence per share.
Revenue growth came from higher brick and pre-cast concrete volumes, Forterra said. While profit was helped by the growth in revenue. it was held back by rising operating costs.
Chief Executive Stephen Harrison said: "The group delivered a result in the first half in line with the board's expectations. Construction has commenced on our new brick facility at Desford following the confirmation of full planning consent. Once completed, the GBP95 million investment will result in the largest and most efficient brick plant in Europe.
"We remain watchful of the impact of the current political and economic uncertainty on our end markets. While noting that some recent economic data points have weakened, demand for products supplied into the new build residential market remains robust. Based on our order book and the continued strength of our core market, the board's expectations for the full year are unchanged," Harrison continued.
"The board remains confident of its strategy and its belief that the business is well positioned to benefit from the attractive market fundamentals over the medium term."
Bricks & Blocks make up the majority of Forterra's revenue, and the figure for the unit rose 5.3% to GBP143.9 million. Earnings before interest, tax, depreciation, and amortisation climbed 8.1% to GBP41.6 million.
Bespoke Products revenue jumped 15%, and Ebitda by 29%, to GBP50.9 million and GBP900,000 respectively, boosted by higher pre-cast concrete volumes.
Forterra shares were 1.9% lower on Tuesday morning in London at a price of 266.74 pence each.
Related Shares:
Forterra