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Annual Results

Forterra revenues rise

15 March 2017 09:28

Forterra's revenues rose to £294.5m in the year to the end of December - 1.5% up on last time.

It said this was due to increased brick, aggregate block and precast volumes arising from strong sales to housebuilders offset partially by merchant destocking earlier in the year.

Forterra said EBITDA increased by £3.1m to £70.6m due to higher sales and good control of cost base and overheads while strong cash flow performance reduced debt ahead of target, with net debt at 31 December of £92.3m representing 1.3 times adjusted EBITDA.

Chief executive Stephen Harrison said: "Our first annual results as a listed company show good progress in the delivery of our strategy.

"Revenue and profit both increased year-on-year due to a strong performance in the second half as volumes to housebuilders continued at a good rate and the destocking in the supply chain at merchants and distributors eased towards the end of the year.

"2017 has started well, building on the momentum seen in the second half of 2016, with brick volumes for the first two months ahead of last year.

"The Group continues to see strong activity levels from the major housebuilders and positive indications from these customers for at least the first half of the year.

"It appears that the destocking in the builders merchants' supply chain is now largely complete. As anticipated, price increases for the year have now been agreed with most customers in order to cover the increases in the cost base.

"Based on our order book and current levels of activity, the outlook for the first half of the year is good. We have less visibility for the second half of the year, however we anticipate a more balanced outcome between the first and second halves than in 2016.

"At this stage we expect to make progress through 2017 and our expectations for the full year are unchanged.

"The board remains confident that the business is well-positioned to take advantage of the attractive market fundamentals and of its ability to increase shareholder value."

At 9:28am: (LON:FORT) Forterra Plc Ord 1p Wi share price was +0.63p at 208.63p

Story provided by StockMarketWire.com

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