REG - Forterra plc - 2024 AGM Trading Update

ForterraAnnouncement

21/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240521:nRSU1618Pa&default-theme=true

RNS Number : 1618P  Forterra plc  21 May 2024

21 May 2024

FORTERRA PLC

 

2024 AGM Trading Update

 

Continuation of challenging trading conditions, full year guidance maintained

 

Ahead of our AGM which is to be held at 12.00pm today, Forterra plc (the
'Group'), a leading UK manufacturer of essential clay and concrete building
products, provides its trading update for the four month period ended 30 April
2024 (the 'Period').

 

Trading conditions throughout the Period remained challenging with depressed
activity levels persisting across our key markets, in part driven by the
exceptionally wet weather experienced in the first quarter.

 

Group revenue in the Period was 6% below the prior period comparative. This is
consistent with our assessment of demand in the domestic brick market as
informed by data from our trade association and the Department for Business
and Trade.

 

Alongside this, imports of bricks to the UK in the first three months of the
year, as published by HMRC, fell by 24% relative to the prior year, continuing
the decline seen throughout 2023.

 

Notwithstanding the challenging market, our continued focus on cost control
and commercial discipline have allowed us to mitigate the impact of lower than
expected sales volumes during the Period.

 

Looking ahead, whilst overall trading conditions remain challenging, we have
seen modestly improved levels of activity through April and into May with
improving demand for both flooring and foundation products providing tentative
indications of increasing build rates and improving demand as the year
progresses.

 

Accordingly, subject to a continuation of the recently observed improvement in
activity, our full year expectations remain unchanged, with a greater
weighting towards H2 than previously guided.

 

Neil Ash, Chief Executive of Forterra plc, commented:

 

"Whilst the Group continues to experience weak market demand, I am pleased
that the decisive rationalisation and cost saving actions we implemented in
2023, along with continued commercial discipline and operational agility, has
allowed us to mitigate the effects of a weaker than expected market at the
beginning of the year.

 

We continue to make progress with our strategic investment projects at
Wilnecote and Accrington and the Group remains well positioned to capitalise
as soon as our markets recover."

 

 ENQUIRIES

 Forterra plc                         +44 1604 707 600
 Neil Ash, Chief Executive Officer
 Ben Guyatt, Chief Financial Officer

 FTI Consulting                       +44 203 727 1340
 Richard Mountain / Nick Hasell

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEBLFLZELXBBK