18 May 2021 07:00
FORTERRA PLC
18 May 2021
TRADING STATEMENT
Stronger than expected trading in the first four months of the year
Forterra plc, a leading UK producer of manufactured masonry products, provides this trading update for the first four months of the year ("the period") ahead of its Annual General Meeting being held today at 12.00pm.
Strong demand from both the new build and the repair, maintenance and improvement (RM&I) markets in the period resulted in better than expected trading. Group sales revenues were approximately 95% of the comparable period in 2019, with Bricks and Blocks revenues up 2.5%. Bespoke Products revenues were lower following the previous decision to reduce production of hollowcore concrete flooring. Margins in the period recovered to close to 2019 levels.
However, the Group has recently started to see significant cost inflation across a wide range of categories with the strength of the recovery to date leading to some supply chain shortages. While selling price increases secured at the beginning of the year will be sufficient to offset some of these inflationary pressures, fully recovering cost inflation is likely to become increasingly challenging should these inflationary pressures persist.
While some uncertainty remains as to any effect of the Government reducing its support for the housing market, as well as the ongoing impact of the pandemic on the wider economy, overall customer and market sentiment remains positive and the medium term fundamental attractions of Forterra's key markets remain in place.
The cumulative result of the above is that it is now anticipated that the Group's performance for the year will be materially ahead of the Board's previous expectations.
Results for the six months to 30 June 2021 will be published on 29 July 2021.
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
Forterra (FORT)