Brickmaker says further price hikes coming next month

Forterra has told customers that more price increases are coming their way from the beginning of next month as the firm said it had returned to the black last year.

The brickmaker introduced hikes of 16.5% at the end of last year and said it would be making further double-digit increases on 1 April.

“With most of the raw materials sourced internally, our brick business was somewhat insulated from the worst inflationary pressures until the energy prices increased suddenly in the autumn,” it said.

And it said the war in Ukraine was adding further uncertainty to energy prices.

It added: “To date, the primary risk regarding energy was that of cost. More recently the war in Ukraine has increased concerns as to the security of energy supplies.

“Security of energy supplies has not been identified as a key risk previously although recently this has become an increasing concern.”

The firm said the new build and repair and maintenance markets helped drive the recovery from the pandemic with turnover up 27% to £370m, just 3% below the £380m it posted in 2019.

Pre-tax profit was £56.8m from a £5.4m loss last time.

Forterra has already announced that it is ploughing £27m into its 30-year-old Wilnecote factory in Staffordshire which will be spent on a new kiln, dryers and handling equipment. It is also building a new £95m brick plant at Desford, Leicestershire, which is due to finish later this year.