Revenue slips at brickmaker in first half as market conditions ‘weaken further’

Brickmaker Forterra said revenue in the first half of the year was down by more than 10% in the wake of the worsening market conditions.

The firm said turnover fell 11.5% to £162m which it said had been caused by “challenging market conditions which were a little weaker than had been anticipated at the beginning of the year”. Pre-tax profit in the six months to June slumped 29% to £12.8m.

And Forterra, which last year saw turnover drop 24% to £346m, said there was “little evidence of a sustained recovery in the near-term [despite] modest signs of improving demand in recent months”.

It added: “With H1 despatches generally below our previous expectations, we have acted decisively to adjust our production plans and reduce output accordingly, prioritising working capital over short-term operating efficiency.

“With expected reductions in interest rates now delayed into H2 and mortgage rates remaining high, the challenging trading conditions which have persisted in H1 are expected to continue in the near term.”

It said it shelled out £2.8m in exceptional costs which was made up of £2.6m in professional fees for “an aborted corporate transaction” and a further £200,000 of restructuring costs, having cut jobs last year.