Last checked at 24 Nov 2020 07:00
24 November 2020
FORTERRA PLC
TRADING STATEMENT
Forterra plc, a leading UK producer of manufactured masonry products, provides this trading update for the four months ended 31 October 2020.
Trading and operational update
Trading in September and October exceeded our previous expectations, with brick and block revenues at 95% of the comparable prior year period. The recovery within the Bespoke Products division has also been sustained, with sales of our precast concrete floor beams remaining robust.
Trading has continued in a similar pattern through November, despite the start of a second national lockdown in England. Demand for our products has not been adversely affected with housebuilders encouraged to continue both the building and selling of homes, and builders' merchants remaining open to support tradesmen who are permitted to work on customers' properties. Production at our facilities, except the mothballed hollowcore flooring facility at Swadlincote, is running at pre-pandemic levels. As a result, the Board now anticipates 2020 EBITDA, stated before exceptional items, to be at least £34m, above the previously communicated range of £27m-£32m.
The construction of our new brick factory at Desford continues to progress although the recent insolvency of a supplier of manufacturing equipment and continued restrictions on travel from continental Europe have presented a number of challenges. Discussions with alternative suppliers are at an advanced stage and despite these challenges, at this time we continue to believe that the project can be delivered on time and on budget.
FY20 dividend
The Board remains confident that the Group is well placed to benefit from the strong long-term fundamentals of the residential construction market. Similarly, the Board has been encouraged by the recent recovery in trading and the generation of operating cashflow this has delivered. Accordingly, provided there continues to be no significant disruption to operations from the second wave of COVID-19, the Board now expects to recommend a final dividend for 2020 ahead of the 2021 AGM.
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.
ENQUIRIES
Forterra plc +44 1604 707 600
Stephen Harrison, Chief Executive Officer
Ben Guyatt, Chief Financial Officer
FTI Consulting +44 203 727 1340
Richard Mountain / Nick Hasell