Forterra grows 11%
August 01, 2017 – Brick and block producer Forterra, formerly Hanson Building Products, has reported 11% growth in revenues for the first half of 2017 on the back of growth in the house-building sector.
For the six months ended 30th June 2017 Forterra generated revenue of £162.7m (2016 H1: £146.0m). Pre-tax profit was £33.6m, up considerably on the previous year’s £13.0m, although last year’s results were impacted by costs associated with Forterra spinning out from former parent company HeidelbergCement.
As reported last week, Forterra is now also looking to take market leadership in precast concrete products having agreed to acquire the trade and assets of Bison Manufacturing from Laing O’Rourke for £20m.
Chief executive Stephen Harrison said of recent trading: “We are pleased with the first half performance. We achieved increased sales through strong brick and aggregate block volumes, underpinned by robust activity levels in the new build residential sector, albeit against a relatively weaker volume comparator due to supply chain destocking which unwound during 2016. We also achieved underlying price increases in the first half which mitigated increases in the operating cost base.
“Current levels of activity from our housebuilder customers and our order book growth continue to be positive, but we remain watchful over any negative impact from a weakening of consumer confidence on the housing and RMI markets.
“The board expects to continue to make progress in the second half, and our expectations for the full year are unchanged.”