Forterra Share News (FORT)

LONDON (Alliance News) - Masonry products firm Forterra PLC on Monday reported an increase in interim profit as its core Bricks & Blocks business put in a strong performance.

For the six months to June, Forterra posted a pretax profit of GBP32.3 million, up 2.9% on the same period a year before.

Revenue for the period was 11% higher at GBP180.0 million.

Forterra is increasing its interim shareholder return by 6.5% year-on-year to 3.3 pence per share.

Forterra said revenue growth was both on an organic basis, driven by higher aircrete block volume and price increases to offset inflation, as well as the September last year acquisition of Bison Manufacturing Ltd.

In Bricks & Blocks, revenue rose 7.0% to GBP132.4 million while earnings before interest, tax, depreciation, and amortisation increased 7.8% to GBP38.5 million.

Forterra said trading was hit at the start of the year by severe weather, with the company managing to nevertheless increase aircrete volumes. Brick volumes, by contrast, were largely flat year-on-year due to the bad weather and a strong comparable.

Forterra's Bespoke Products arm posted revenue of GBP48.5 million, 21% higher year-on-year, but Ebitda fell 77% to GBP700,000.

Reduced orders in the business meant the integration of Bison Manufacturing's Swadlincote factory was "more challenging", while there were also issues at an existing plant. The company has since made a leadership change in the business.

Forterra described its interim performance as "solid", and it expects Bespoke Products to recover somewhat. Overall, group pretax profit for 2018 should meet expectations.

Shares were 2.1% higher on Monday at a price of 299 pence each.