REG - Forterra plc - Full Year Results
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RNS Number : 1274W Forterra plc 11 March 2026
A strong performance in challenging markets; £20m share buyback programme
announced
Adjusted(1) Statutory
2025 2024 Change 2025 2024 Change
£m £m (%) £m £m (%)
Revenue 386.0 344.3 12.1 % 386.0 344.3 12.1 %
EBITDA(2) 61.6 52.0 18.5 % 48.9 54.7 (10.6 ) %
EBITDA(2) margin 16.0 % 15.1 % 90 bps 12.7 % 15.9 % (320) bps
Operating profit (EBIT) 42.0 31.2 34.6 % 29.3 33.9 (13.6 ) %
Profit before tax (PBT) 36.0 22.1 62.9 % 23.3 24.8 (6.0 ) %
Earnings per share (pence) 12.6 7.6 65.8 % 8.1 8.3 (2.4 ) %
Operating cash flow 68.7 60.1 14.3 % 68.1 51.8 31.5 %
Net debt before leases (55.7 ) (84.9 ) (34.4 ) %
Total dividend (pence) 6.2 3.0 106.7 %
(1)Adjusted results for the Group have been presented before exceptional and
adjusting items (2025: net expense of £12.7m, 2024: net income of £2.7m)
relative to statutory profit as explained in Alternative Performance Measures
within note 15. Presenting these measures allows a consistent comparison with
prior periods.
(2)EBITDA, adjusted EBITDA and net debt before leases are APMs, as explained
in note 15. They are presented above under the statutory heading, being
calculated with reference to statutory results without adjustment.
RESULTS
• Outperformance versus the wider market delivered 12.1% revenue
growth, with our brick market share recovering to historical levels
• UK brick industry despatches rose by 6% year on year, despite the
market softening in H2
• Pricing remained stable during the year
• Strong 18.5% increase in adjusted EBITDA to £61.6m, margin
improved by 90 bps to 16.0%
• 62.9% increase in adjusted PBT drives a 65.8% increase in adjusted
EPS
• Strong cash generation continued with adjusted operating cash flow
of £68.7m reducing net debt (pre-leases) to £55.7m, equating to leverage of
c.1.0 times
STRATEGIC PROGRESS
• Wilnecote factory nearing completion with the commissioning of a
new specification focused product range underway
• Desford output increased with both kilns running simultaneously
for the first time
• Omnia range of extruded brick slips launched with first sales
secured
CAPITAL ALLOCATION
• Updated capital allocation priorities to maximise stakeholder
value
• Recommended 2025 final dividend of 4.3p per share (2024: 2.0p)
bringing total dividend to 6.2p (2024: 3.0p) in line with updated policy
targeting c.2x cover
• With leverage now returned to normalised levels and reflective of
our lower capital investment requirements going forward, the Board intends to
commence the return of surplus capital to shareholders with an initial £20m
share buyback programme in 2026. The intention is that this programme will
continue beyond the end of this year although the Board will keep this under
review
2026 OUTLOOK
• 2025 ended with subdued market conditions which have continued
into early 2026, with exceptionally wet weather making it difficult to assess
the strength of the underlying market
• We currently anticipate demand in 2026 will be similar to 2025,
although with current activity tracking behind 2025 levels, demand is expected
to be weighted towards the second half
• Expect to recover modest cost inflation through annual pricing
negotiations currently being concluded with our customers
• Gas requirements for the remainder of 2026 c.80% fixed, with March
2026 benefitting from 100% coverage
• Without the further benefit of a meaningful recovery in demand,
and assuming no prolonged impacts from the situation in the Middle East, we
currently expect our 2026 adjusted EBITDA to be slightly ahead of 2025
Neil Ash, Chief Executive Officer, commented:
"We made good strategic and financial progress during 2025. Despite only a
modest improvement in market conditions, the resilience of our business model
alongside our exposure toward new build housing and the weighting of our asset
base in favour of extruded brick allowed us to outperform the wider market and
deliver a strong financial performance.
"During the year, we continued to successfully execute our strategy. At our
Desford brick factory, both kilns ran simultaneously for the first time
increasing production output and efficiency, and the redevelopment of our
Wilnecote factory is nearing completion with commissioning of a specification
focused product range underway. We also launched our Omnia extruded brick slip
range at Accrington.
"Today we have announced our updated capital allocation priorities. Our focus
is to maximise stakeholder value by delivering attractive returns from organic
investment; paying a progressive ordinary dividend; and providing
supplementary returns as appropriate. In this regard we have this morning
announced a £20m share buyback programme.
"Looking beyond 2026, market fundamentals remain attractive with a shortage of
housing, a strong desire within Government to address this, and a constrained
supply of essential building products. The Board remains confident that our
recent investments in new production capacity leave the Group well placed to
benefit from the market's structural growth drivers and a sustained recovery
when it occurs."
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 / Vicky Hayns
A presentation for analysts will be held today, 11 March 2026, at 10.00am. A
video webcast of the presentation will be available on the Investors section
of our website (http://forterraplc.co.uk/).
ABOUT FORTERRA PLC
Forterra is a leading UK manufacturer of essential clay and concrete building
products, with a unique combination of strong market positions in clay bricks,
concrete blocks and precast concrete flooring. Our heritage dates back many
decades and the durability, longevity and inherent sustainability of our
products is evident in the construction of buildings that last for
generations; wherever you are in Britain, you won't be far from a building
with a Forterra product within its fabric.
Our clay brick business combines our extensive secure mineral reserves with
modern and efficient high-volume manufacturing processes to produce large
quantities of extruded and soft mud bricks, primarily for the new build
housing market. We are also the sole manufacturer of the iconic Fletton brick,
sold under the London Brick brand, used in the original construction of nearly
a quarter of England's housing stock and today used extensively by homeowners
carrying out extension or improvement work. Within our concrete blocks
business, we are one of the leading producers of aircrete and aggregate
blocks, the former being sold under one of the sector's principal brands of
Thermalite. Our precast concrete flooring products are sold under the
established Bison brand.
INTRODUCTION
We are pleased with the progress we have made over the past year. Capitalising
on only a modest improvement in market conditions, we have outperformed the
wider industry. Demand from the new build housing sector improved a little
during 2025, while the Repair, Maintenance and Improvement (RM&I) market
remained subdued, with little sign of recovery. Against this mixed backdrop,
the business has demonstrated resilience, delivering a strong financial
performance and continued strategic progress.
OUR MARKETS
Overall, we saw a modest improvement in the demand for our products during
2025, although it was a year of two halves. The first half of the year saw
strengthening demand but this slowed in the second half of the year, largely
driven by uncertainty caused by the late Budget and the long-running
speculation as to its contents. UK domestic brick despatches as published by
the Department for Business and Trade (DfBT) increased by 6% relative to 2024,
however in line with our own experience, demand softened in the second half,
with despatches 4% below the first half, and 3% below the second half of 2024.
National House-Building Council (NHBC) data suggests that new home
registrations increased by 11% in 2025 demonstrating some modest recovery,
although build levels remain well below normal levels and demand from the
Repair Maintenance and Improvement (RM&I) sector remained muted.
Imports of bricks into the UK recorded a modest increase during the year,
remaining broadly flat as a percentage of total brick consumption at
approximately 20%. With 2025 total UK brick consumption standing at
approximately 1.8 billion bricks (2024: 1.7 billion), demand remains almost
30% below the 2022 figure of 2.5 billion.
CURRENT TRADING AND OUTLOOK
2025 ended with subdued market conditions which have continued into early
2026, with exceptionally wet weather making it difficult to assess the
strength of our underlying markets. UK domestic brick despatches in January
2026 were 8% below the 2025 comparative. We anticipate demand in 2026 will be
similar to 2025 although with current activity tracking behind 2025 levels, it
is expected that demand will be weighted towards the second half.
We expect the operating leverage benefits of increasing production at Desford
and Wilnecote to be broadly offset by the impacts of production reductions
elsewhere as we continue to actively manage inventory levels. We are currently
concluding our annual pricing negotiations with our customers and expect to
recover the modest cost inflation we currently face. Accordingly, without the
further benefit of a meaningful recovery in demand and assuming no prolonged
impacts from the situation in the Middle East, we currently expect our 2026
adjusted EBITDA to be slightly ahead of 2025.
Looking beyond 2026, market fundamentals remain attractive with a shortage of
housing, a strong desire within Government to address this, and a constrained
supply of essential building products. The Board remains confident that our
recent investments in new production capacity leave the Group well placed to
benefit from the market's structural growth drivers and a sustained recovery
when it occurs.
RESULTS FOR THE YEAR
REVENUE
Total revenue of £386.0m represented a 12.1% increase upon the prior year
(2024: £344.3m). This increase was primarily driven by increased sales
volume. Within our Bricks and Blocks segment we saw our brick volume growth
outperforming the wider market, although demand for both aircrete and
aggregate blocks was muted with despatches falling slightly year-on-year in
line with the wider market. Within the Bespoke Products segment we saw strong
volume growth for our precast concrete flooring products with pricing
remaining stable across our entire product range.
ADJUSTED EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA)
Adjusted EBITDA was £61.6m (2024: £52.0m) with profitability benefitting
from both increased sales volumes and also the greater operating efficiency
that this enables. Bricks and Blocks segmental adjusted EBITDA was £56.9m
(2024: £49.0m) and Bespoke Products contributed an adjusted EBITDA of £4.7m
(2024: £3.0m).
ADJUSTED PROFIT BEFORE TAX
Adjusted profit before tax was £36.0m representing an increase of 62.9% on
the prior year (2024: £22.1m), with the increase driven by an improved
trading performance alongside lower financing costs, which were the result of
a reduction in both the cost and level of borrowings.
STATUTORY RESULTS
On a statutory basis, EBITDA was £48.9m (2024: 54.7m), and profit before tax
(PBT) was £23.3m (2024: £24.8m). These results are stated after the
inclusion of adjusting and exceptional items as laid out in this review.
OPERATING EFFICIENCY
We benefitted from some improvement in operating efficiency during the year
with our output of the majority of our products increasing. In response to
improving demand for extruded bricks, we have increased output at our Desford
factory, running both kilns simultaneously for the first time although,
overall our output remains well below normalised levels which creates some
inherent operating inefficiency. During 2025 our brick production output ran
at approximately 60% of our installed production capacity.
Production planning was challenging, with the strong demand seen in the first
half of the year softening somewhat in the second half, necessitating that we
keep output levels constantly under review. Regrettably, we announced some
modest reductions in both the production of both London Brick and aircrete
blocks in early 2026.
OPERATING COSTS
Our cost base remained broadly stable throughout the year with normal levels
of input cost inflation. Unit gas costs continued to moderate as a result of
both market movements and our strategy of forward purchasing in order to
reduce price risk, however, increased usage associated with higher production
resulted in the overall cost of gas being in line with the prior year.
Our electricity spend in the year benefited from our solar power purchase
agreement (PPA) which was signed in 2022. The solar farm commenced generation
in 2024, but we first benefitted from the long-term contracted competitive
rates in April 2025, resulting in a year-on-year reduction in our electricity
cost.
Looking ahead, we have around 80% of our gas usage secured for the remainder
of 2026 with the month of March 100% covered, insulating us somewhat from the
current price volatility caused by the situation in the Middle East. We also
have a good level of layered coverage beyond this, with around 70% of our
usage secured in 2027 and with coverage reducing through to 2030.
STRATEGIC PROGRESS
During 2025, we continued to Strengthen our Core. At our Desford brick
factory, both kilns ran simultaneously for the first time, increasing
production output and efficiency. The redevelopment of our Wilnecote factory
is virtually complete, and commissioning of a new specification focused
product range is underway. This will enable us to regain and grow our position
in the commercial and specification markets. Beyond the Core, we successfully
launched our Omnia extruded brick slip range at Accrington. Combined with our
Omnia mechanically fixed façade system, these products position us to
increase our share of the growing façade market and ensure brick remains a
relevant and attractive choice for multi-family and high-rise developments.
Sustainability and innovation remain key drivers. In collaboration with a
partner, we have industrialised the production of calcined clay, a low-carbon
cement substitute derived from our London Brick production waste. This
material is already in use in our own concrete products and will shortly be
available commercially through our partner. This initiative represents a first
step leveraging this material and we are considering opportunities to expand
this by utilising virgin clay.
CAPITAL ALLOCATION
Whilst retaining leverage of under 1.5 times adjusted EBITDA, our capital
allocation priorities are designed to maximise stakeholder value and
facilitate the delivery of our strategy over the medium-term.
• Selective strategic organic capital investment to deliver attractive
returns;
Strategic investment in our manufacturing base has been central to our
progress. Over the past six years we have invested approximately £140m in new
brick and brick slip manufacturing capacity, modernising our asset base,
increasing our brick manufacturing capacity by 15%, improving efficiency and
reducing carbon emissions. Looking ahead, we now expect lower levels of
capital expenditure in the coming years, whilst still progressing a potential
investment in our aircrete business, ensuring we retain both our market
position and competitiveness. We intend to mitigate capital outlay by
maximising the value we derive from our property assets.
We are presently investing around £1.5m on a dedicated brick slip cutting
facility at our Measham site complementing our Omnia range of extruded brick
slips with cut slips, ensuring we can meet all our customers' needs. This new
facility is expected to be operational by the end of 2026.
Alongside modest strategic investment, we expect annual maintenance capital
spend of up to £15m in the medium-term whilst retaining the ability to flex
this as appropriate. In the short-term we expect maintenance capital spend to
remain below this figure.
• Attractive ordinary dividend with a coverage of approximately
2x earnings;
We will retain an attractive dividend policy, distributing approximately 50%
of adjusted earnings. As our markets improve and earnings recover, we expect
our dividend to progressively increase.
The Board is recommending a final dividend of 4.3p per share (2024: 2.0p)
which, in addition to the interim dividend of 1.9p per share paid in October
(2024: 1.0p), will bring the total dividend to 6.2p per share, more than
double the prior year figure (2024: 3.0p). Subject to approval by
shareholders, the final dividend will be paid on 6 July 2026 to shareholders
on the register as at 12 June 2026.
• Supplementary shareholder returns as appropriate;
With leverage now returned to normalised levels, comfortably below our
targeted maximum, and reflective of our lower capital investment requirements
in the near-term, the Board intends to commence the return of capital to
shareholders. We are announcing a programme of share buybacks returning
approximately £20m to shareholders through the remainder of 2026. The
intention is that this programme will continue beyond the end of this year
although the Board will keep this under review.
• Bolt-on acquisitions as suitable opportunities arise to accelerate
our growth, particularly Beyond the Core.
We will continue to explore M&A opportunities that align with our
strategy. With our core markets being highly consolidated, any M&A
is more likely to focus upon accelerating growth Beyond the Core.
EXCELLENCE PROGRAMMES
Operational excellence continues to be a cornerstone of Forterra's
performance. Our Sustainable Operational Excellence (SOE) programme, launched
in 2025, equips leaders with the skills, habits, and behaviours needed to
embed continuous improvement across our factories. SOE supports annual cost
reduction targets, aiming to reduce cost of sales by 2%, and will be rolled
out across all our manufacturing facilities over the next two-to-three years.
Commercial excellence also remains central to our strategy. We have refined
our route-to-market to meet customer needs and strengthen margin resilience.
Pricing discipline, specification-led selling and enhanced customer engagement
have allowed us to deepen relationships with housebuilders, merchants,
distributors, and contractors. The introduction of Net Promoter Score
measurement across key customer groups confirms the value we add through
consistent, reliable service and expertise.
SEGMENTAL RESULTS
Our business is managed as two segments and we allocate our central overheads
to each segment based on a historical revenue-driven allocation mechanism,
with central overheads allocated to Bricks and Blocks and Bespoke Products in
the ratio 80%:20% respectively. In practice, the allocation of overheads to
Bespoke Products exceeds the level of overheads that are directly applicable
to this segment. Accordingly, we also disclose the allocation of central
overheads to give greater visibility of the underlying profitability of our
segments, in particular Bespoke Products.
BRICKS AND BLOCKS SEGMENT
We possess a unique combination of strong market positions in both clay brick
and concrete blocks. We operate eight brick factories in seven locations
across the country with a total installed production capacity of approximately
600 million bricks per annum. Alongside a range of products ideally suited to
new build housing, we are the only manufacturer of the iconic and original
Fletton brick sold under the London Brick brand. Fletton bricks were used in
the original construction of nearly a quarter of England's existing housing
stock and are today used to match existing brickwork by homeowners carrying
out extension or improvement work.
Our clay reserves are the foundation that our brick business is built upon
and are the primary raw material used in manufacturing our bricks. Each of our
brick factories is located adjacent to a quarry supplying locally sourced clay
directly into the manufacturing process. Sourcing material locally is
sustainable and therefore preferable wherever possible as it avoids the costs
and carbon emissions associated with transportation. Our mineral reserves also
provide a natural barrier, reducing the threat of new entrants entering the
market as the planning process to secure consent for a 'green-field' quarry
and associated brick factory can take as long as 10 years. All of the new
brick factories built in the UK over the last two decades, if not longer, have
been redevelopments of existing locations utilising established quarries. We
have access to over 90 million tonnes of minerals, and on average these
reserves are sufficient to sustain manufacturing operations for approximately
50 years. The majority of our minerals are owned, although a small amount are
secured by way of lease with a royalty payable at the point of extraction.
We are also a leader nationally in the aircrete block market. Under the
Thermalite brand, we operate two block facilities in the Midlands and South of
England. In addition, our aggregate block business has a leading position in
the important South East and East of England markets where it has two
well-located manufacturing facilities.
TRADING AND RESULTS
2025 2024
£m
£m
Adjusted Statutory Adjusted Statutory
Revenue(1) 307.7 307.7 276.7 276.7
EBITDA(2) before overhead allocations 81.6 72.2 66.2 71.7
Overhead allocations(3) (24.7) (24.7 ) (17.2) (17.2 )
EBITDA(2) after overhead allocations 56.9 47.5 49.0 54.5
EBITDA(2) margin before overhead allocations 26.5% 23.5 % 23.9% 25.9 %
EBITDA(2) margin after overhead allocations 18.5% 15.4 % 17.7% 19.7 %
(1)Revenue is stated before inter-segment eliminations.
(2)Both EBITDA and adjusted EBITDA are APMs, as explained within note 15.
EBITDA is presented above under the statutory heading, being calculated with
reference to statutory results without adjustment.
(3)Overhead allocations are costs centrally incurred by the Group, including
general administrative expenses.
SALES VOLUMES
Our brick despatches showed solid growth, outperforming the wider market. Of
the different market segments that we service we carry the greatest exposure
to new build housing. It is this segment that has driven the wider growth in
the market during the year. As a result of our focus on housebuilding, we
somewhat mechanically suffered a loss of brick market share in 2023 as our
major housebuilding customers quickly curtailed their build programmes in
response to a sudden decline in demand. With the same major housebuilders
increasing their brick consumption in 2025 and our footprint weighted towards
extruded brick, our market share has recovered back to historical levels.
Current affordability challenges place the greatest pressure on the housing
market in the South East of England where soft mud brick is most prevalent. It
is in the Midlands and Northern England where we have seen a stronger recovery
in housing starts increasing demand for extruded bricks. Also, imported bricks
are primarily soft mud products, which therefore has a greater impact on
demand for domestically produced soft mud bricks.
Our manufacturing footprint is well suited to current demand. UK brick
manufacturing capacity is split approximately 65% extruded and 35% soft mud,
with domestic despatches in recent years being approximately two thirds
extruded, one third soft mud. Our own brick production footprint (excluding
the unique London Brick) is 80% extruded, and 20% soft mud, with only a single
highly efficient soft mud factory in our estate. Trade association data
suggests that domestic extruded brick despatches grew by 9% in 2025, whereas
soft mud demand actually fell by 1%, benefitting Forterra. In addition, with
limited house price growth and the housebuilding sector facing pressure on
their margins, housebuilders may seek to reduce build costs by electing for
cheaper extruded bricks over soft mud.
Demand for our aircrete and aggregate block products actually fell slightly
relative to 2024. The aircrete market stabilised following the prior year
competitor supply challenges from which we benefited, and our aggregate block
business continued to experience weak demand by virtue of its exposure to the
South East market and also the multi-family residential market which was
heavily impacted by delays associated with the Building Safety Regulator.
PRICING AND COSTS
We saw the continuation of a relatively benign cost base throughout 2025. Unit
gas costs continued to moderate as a result of market movements and our
strategy of forward purchasing in order to reduce price risk, however
increased usage associated with higher production resulted in the overall cost
of gas being in line with the prior year.
Our electricity spend in the year benefited from our solar power purchase
agreement (PPA) which was signed in 2022. With the solar farm commencing
generation in 2024, we began benefitting from the long-term competitive rates
in April 2025 resulting in a year-on-year reduction in our electricity cost.
Brick pricing during the year was stable. With no meaningful price increases
delivered since 2022, our intention had been to increase selling prices to
offset inflation. Unfortunately, challenging market conditions and competitor
behaviours determined that these price increases did not hold in the market,
as we needed to ensure our pricing remained competitive. In addition, with
much of our volume growth being in extruded brick, we also experienced an
adverse price mix as cheaper bricks represented a larger proportion of our
sales. Pricing in aircrete was more positive with increases delivered to all
customers, although aggregate block remained highly competitive.
OPERATIONS
Our operational focus through 2025 was to ensure production remained aligned
with demand, something that proved challenging with differing and shifting
demand dynamics across our product range. Strong demand for extruded bricks
led to our ramping up production at the Desford brick factory where during the
autumn we commenced running both kilns simultaneously for the first time.
Adding just 25 additional roles ultimately facilitates a doubling of output,
significantly enhancing the factory's efficiency relative to a single kiln
operation. This represents a key step in Desford's journey as we seek to
increase output towards its design capacity of 180 million bricks per annum.
During the year we also increased production of aircrete blocks in response to
growing demand in the first half. Demand increases have not been uniform
however and regrettably, at the beginning of 2026 we have announced
reductions in production of London Brick and aircrete blocks. In the case of
aircrete, this has reversed some of the increase implemented in 2025. These
actions have regrettably led to modest numbers of redundancies in early 2026.
Looking ahead, with continued uncertainty, we need to retain our agility and
will act to ensure that production continues to remain aligned with sales.
CLOSURE OF NON-CORE BUSINESS
During the year we made the decision to exit our two non-core businesses, one
of which, being the Formpave concrete block paving business, is included
within our Bricks and Blocks segment. With 2024 full-year revenue of £5.9m,
Formpave was a small non-core part of the segment, contributing around 2% of
segmental revenue. The business broke even in 2024 and was loss-making in the
current year. With the landscaping market remaining particularly challenging
and the factory requiring significant capital investment to remain
operational, we opted to exit this sub-scale business.
BESPOKE PRODUCTS SEGMENT
The Bespoke Products segment consists of our Bison Precast flooring business.
Our products comprise beam and block flooring, including Jetfloor, which was
the UK's first suspended ground floor system to use expanded polystyrene
blocks combined with a structural concrete topping to provide high levels of
thermal insulation. As well as this, we manufacture and supply hollowcore
floor alongside accompanying staircases and landings for use in the upper
floors of multi-family and commercial developments.
During the year we exited the Bison Bespoke Precast operation. This business
manufactured a range of non-flooring structural precast components. The Bison
flooring business is unaffected by this decision and remains an integral part
of the Group's core operations.
TRADING AND RESULTS
With Bison precast concrete flooring accounting for much of this segment's
revenue during the year, the performance of this segment remains closely
correlated with Bricks and Blocks. Segmental turnover in the year increased by
13.3% to £81.0m (2024: £71.5m) driven by strong demand for both our beam and
block and hollowcore products.
Segmental adjusted EBITDA stated before allocation of Group overheads was
£10.9m (2024: £7.3m). This segment delivered an excellent performance in the
year ahead of the levels delivered in 2022 when market demand was much
stronger. After an allocation of Group overheads of £6.2m (2024: £4.3m),
the segment's adjusted EBITDA was £4.7m (2024: £3.0m). We have retained a
consistent allocation of central overhead costs based on revenue although, in
reality, the level of overhead directly attributable to this segment is likely
to be lower.
2025 2024
£m
£m
Adjusted Statutory Adjusted Statutory
Revenue(1) 81.0 81.0 71.5 71.5
EBITDA(2) before overhead allocations 10.9 7.6 7.3 7.2
Overhead allocations(3) (6.2) (6.2 ) (4.3) (4.3 )
EBITDA(2) after overhead allocations 4.7 1.4 3.0 2.9
EBITDA(2) margin before overhead allocations 13.5% 9.4 % 10.2% 10.1 %
EBITDA(2) margin after overhead allocations 5.8% 1.7 % 4.2% 4.1 %
(1)Revenue is stated before inter-segment eliminations.
(2)Both EBITDA and adjusted EBITDA are APMs, as explained within note 15.
EBITDA is presented above under the statutory heading, being calculated with
reference to statutory results without adjustment.
(3)Overhead allocations are costs centrally incurred by the Group, including
general administrative expenses.
SALES VOLUMES
Linked to an increase in housebuilding activity, we experienced a strong
growth in demand for both our Jetfloor beam and block flooring system and our
hollowcore products during the first half of the year, although demand
softened in the second half of the year.
PRICING AND COSTS
Both our selling prices and cost base remained relatively stable during the
year. Margins improved reflecting both increased activity levels and the
associated benefit in operating efficiency, alongside the benefits enabled by
product innovation as we developed our products to meet customer needs in a
more cost-effective manner. Our Sustainable Operational Excellence (SOE)
programme continued to yield cost savings.
EXIT FROM NON-CORE BUSINESS
As outlined above, we exited our non-core Bison Bespoke Precast operation
during the year. Manufacturing a range of non-flooring structural precast
components, Bison Bespoke Precast generated revenue of £9.7m in 2024,
accounting for around 14% of segmental revenue. This business had struggled to
exceed break even performance for a number of years and several attempts to
improve upon this performance had not been successful. The freehold factory
site is owned by the Group and holds significant land value that we intend to
monetise in support of our wider strategic and capital allocation priorities.
ALTERNATIVE PERFORMANCE MEASURES
In order to provide the most transparent understanding of the Group's
performance, we use alternative performance measures (APMs) which are not
defined or specified under IFRS. We believe that these APMs provide additional
helpful information on how our trading performance is reported and reviewed
internally by management and the Board, allowing non-trading items which are
less likely to recur to be assessed separately.
Management and the Board use several profit-related APMs in assessing Group
performance and profitability. These are considered before the impact of
exceptional and adjusting items.
EXCEPTIONAL ITEMS
Exceptional items in the year included impairment and termination costs
associated with the exiting of the non-core businesses of Formpave and Bison
Bespoke Precast. The total combined exceptional cost of exiting these
businesses was £6.7m with termination costs which have been, or will be
cash-settled totalling £2.5m with the rest of costs being non-cash impairment
charges. The decision to exit these non-core businesses is aligned to our
long-term strategy, demonstrating disciplined capital management, being both
cash flow and margin accretive, avoiding significant capital expenditure at
Formpave and releasing a valuable land asset in the case of Bison Bespoke
Precast, whilst at the same time enabling greater management focus on
delivering our strategy of Strengthening the Core and seeking growth through
expansion Beyond the Core.
ADJUSTING ITEMS
In addition to exceptional items, we have also identified further adjusting
items, the separate disclosure of which allows us to present our results in a
manner that will allow users of our financial statements to understand the
underlying trading performance of the business applying consistent treatments
as used by management to monitor the performance of the Group.
Adjusting items in the current and previous year relate to both realised and
open energy positions where committed energy purchased by the Group have or
are expected to exceed consumption. Where forward energy contracts are
expected to be utilised in full, we apply the own use exception within IFRS 9
Financial Instruments and these are not marked to market. Where we have energy
in excess of our anticipated needs secured under forward contracts, these
contracts do not meet the own use exemption and as such are treated as
derivatives and marked to market, resulting in gains and losses as market
prices fluctuate. Any impact on the profit and loss as a result of this marked
to market treatment, along with profits and losses on the sale of surplus
energy, are shown as adjusting items.
In the year, the Group realised a £1.2m gain in respect of surplus energy
sold back to the market, which has been removed from the adjusted results.
Alongside this, the Group has removed the marked to market revaluation impact
of energy derivatives in the period, with the adjusted results reflecting the
cost of energy consumed at the forward purchased rate. This has resulted in a
£7.2m benefit in the adjusted versus the statutory results, with this
effectively being a matter of timing, with a near reverse adjustment in the
prior year.
2025 2024
£m
£m
Adjusted EBITDA(1) 61.6 52.0
Exceptional costs:
Restructuring costs (6.7 ) (0.2 )
Aborted corporate transaction - (2.7 )
Adjusting items:
Realised gain/(loss) on the sale of surplus energy 1.2 (1.5 )
Fair value movement on energy contract derivatives (7.2 ) 7.1
EBITDA(1) 48.9 54.7
(1)Both EBITDA and adjusted EBITDA are APMs, as explained within note 15.
EBITDA is presented above under the statutory heading, being calculated with
reference to statutory results without adjustment.
FINANCE COSTS
Finance costs were £6.0m (2024: £9.1m) with the decrease driven by a
reduction in the level of borrowing, alongside a reduction in the interest
rate payable, with falling leverage leading to a reduction in the margin
payable on our facility, in addition to falls in the headline interest rate.
Finance costs are stated net of capitalised interest of £2.5m (2024: £2.1m)
in respect of the capital investment projects at Wilnecote and Accrington.
Under the terms of the credit agreement, interest is payable according to a
margin grid dependent on leverage. Starting with a margin of SONIA plus 1.65%
applicable whilst leverage (net debt/adjusted EBITDA, as measured before the
impact of IFRS 16) is less than 0.5 times, rising to a margin of 2.75%
if leverage is greater than 2.5 times. A commitment fee of 35% of the margin
is payable on the undrawn credit facility.
TAXATION
The adjusted effective tax rate (ETR) excluding the impacts of exceptional and
adjusted items was 26.2% (2024: 27.1%). The decrease in the ETR is largely
driven by the increase in adjusted profit before tax compared to 2024, and
therefore the percentage of the permanent non-deductible items against profit
is lower. The ETR is higher than the UK main rate of corporation tax due to
the permanent impact of non-deductible items such as depreciation on
non-qualifying assets. The statutory ETR was 27.1% (2024: 29.5%), with the
decrease due to the impact of non-deductible professional fees incurred on an
aborted corporate transaction in 2024.
EARNINGS PER SHARE (EPS)
Adjusted basic EPS was 12.6p (2024: 7.6p). Statutory basic EPS was 8.1p (2024:
8.3p). EPS is calculated as the weighted average number of shares in issue
during the year (excluding those held by the Employee Benefit Trust (EBT))
which in 2025 was 211.0 million (2024: 210.6 million).
CASH FLOW
The Group has a strong history of cash generation and we have delivered
another strong performance in 2025.
Adjusted operating cash flow totalled £68.7m (2024: £60.1m), a year-on-year
improvement of £8.6m. This helped drive a £29.2m reduction in net debt
before leases to £55.7m (2024: £84.9m) after a total capital expenditure of
£14.5m including £8.3m on our three strategic projects at Desford, Wilnecote
and Accrington.
Overall, we saw a favourable £7.8m working capital movement with inventories
decreasing by £2.5m with further favourable movements in both receivables and
payables. Cash outflows in respect of adjusting items comprised restructuring
costs of £1.8m which were associated with exiting the non-core businesses,
offset by receipts from settling surplus gas contracts of £1.2m.
The net tax outflow was £1.1m although within this, the Group received a
prior year tax refund of £2.3m. The corporation tax charge in respect of 2025
was £4.9m; this liability was satisfied by payments to HMRC of £3.4m and an
estimated R&D tax credit claim for 2025 of £1.6m with a refund of £0.1m
recoverable at the year end.
Net payments to the EBT in the year were £0.7m (2024: receipt of £5.1m).
Whilst challenging trading conditions have dictated that the Performance Share
Plan (PSP) awards due to vest in 2025 and 2026 have not done so, accordingly,
the EBT's current requirement for shares to satisfy vesting awards was
diminished. With a significant Save As You Earn award due to vest at the end
of 2026, the EBT has recommenced a modest monthly purchase of shares which is
funded by the Group.
As at the year end, the EBT held 2.2 million shares (2024: 1.9 million shares)
with a market value of £4.0m (2024: £3.1m). It remains our policy to provide
shares for settlement of our share-based employee reward schemes through open
market purchases as opposed to the issue of new share capital.
2025 2024
£m
£m
Adjusted EBITDA 61.6 52.0
Purchase and settlement of carbon credits (0.9 ) 6.0
Other cash flow items 0.2 (6.5 )
Changes in working capital
- Inventories 2.5 13.8
- Trade and other receivables 3.5 (8.0 )
- Trade and other payables 1.8 2.8
Adjusted operating cash flow 68.7 60.1
Payments made in respect of adjusted items (0.6 ) (8.3 )
Operating cash flow after adjusted items 68.1 51.8
Interest paid (8.0 ) (10.0 )
Tax (paid)/credit (1.1 ) 0.4
Capital expenditure
- Maintenance (6.2 ) (4.0 )
- Strategic (8.3 ) (21.6 )
Dividends paid (8.2 ) (6.3 )
Net cash flow from sale and purchase of shares by Employee Benefit Trust (0.7 ) 5.1
Repayment of lease liabilities (6.0 ) (5.9 )
Other movements (0.4 ) (1.2 )
Decrease in net debt before leases 29.2 8.3
CAPITAL EXPENDITURE
The cash outflow in relation to capital expenditure excluding capitalised
borrowing costs totalled £14.5m (2024: £25.6m) with strategic capital
expenditure totalling £8.3m (2024: £21.6m) with maintenance capital
expenditure of £6.2m (2024: £4.0m). Strategic capital expenditure has been
focused upon completing the projects at Wilnecote and Accrington with a small
spend at Desford. The Accrington project is substantially complete with the
new range of extruded brick slips successfully commissioned.
The Wilnecote project is now nearing completion after a number of supplier
driven delays with the commissioning process continuing. Recent maintenance
capital spend reflects our balance sheet management and also the temporary
reduction in our output. Our capital allocation priorities anticipate up to
£15m of maintenance capital spend annually over the medium-term, with lower
spend in recent years demonstrating our ability to flex this. Our total capex
spend in 2026 is again expected to be around £15m, with approximately £8m of
this related to the completion of the strategic projects.
BORROWINGS AND FACILITIES
At 31 December 2025 net debt before leases was £55.7m equating to leverage of
c.1.0 times on a banking covenant basis and a £29.2m reduction on 2024 (2024:
£84.9m). Net debt after adding lease liabilities of £19.9m (2024: £20.9m)
was £75.6m (2024: £105.8m). These leases primarily relate to plant and
equipment, in particular the fleet of heavy goods vehicles used to deliver
our products to our customers.
After exercising an extension option during 2025, the Group's credit facility
comprises a committed revolving credit facility (RCF) of £170m extending to
June 2028. At the year-end a total of £62m was drawn on the facility, leaving
headroom of £108m.
The facility is subject to normal covenant restrictions of net debt/adjusted
EBITDA (as measured before the impact of IFRS 16) of less than three times and
interest cover of greater than four times. The Group has traded comfortably
within these covenants throughout 2025.
With the announcement of the commencement of a programme of share buybacks and
our intention to allocate £20m to the repurchase of shares in 2026, we expect
net debt before leases to remain around the current level over the next year.
Our net debt does fluctuate seasonally and in line with historical trends our
debt levels are likely to be a little higher at the half year.
SUSTAINABILITY
Sustainability continues to guide our innovation efforts. Recognising that our
housebuilding customers increasingly focus on embodied carbon per home, we now
monitor and report carbon emissions per square metre of product alongside our
previous weight based measures. We are developing lighter, more efficient
products reducing raw material use, energy consumption, and distribution
emissions, allowing us to demonstrate meaningful progress in lowering our
carbon footprint despite the significant operating inefficiencies that the
weak demand environment forces upon us. We will continue to collaborate with
customers to ensure our innovation and sustainability initiatives deliver
tangible value across the supply chain.
HEALTH, SAFETY AND WELLBEING
Our commitment to health, safety and wellbeing is unrelenting. We are pleased
that we have delivered a strong safety performance in 2025 with a 60%
reduction in lost time accidents. Our Lost Time Incident Frequency Rate
(LTIFR) fell to its lowest ever level at 0.92 incidents for every million
hours worked (2024: 2.25 incidents).
2025 saw the launch of our Base to Brilliant programme which is focused on
delivering best in class standards and compliance across our manufacturing
facilities with our first sites achieving bronze status in 2025. We have
extended our Visible Felt Leadership programme to around 200 managers focused
on creating a strong safety culture through leaders being visible on the
factory floor and having positive safety conversations with employees.
We have also focused upon positive engagement around safety with our employees
through dedicated safety days run at each factory.
BOARD CHANGES
Independent Non-Executive Director, Martin Sutherland will be retiring from
the Board at the forthcoming AGM. We wish to thank Martin for his significant
contribution and wise counsel during his tenure and the Board wish him every
success in the future.
Our Senior Independent Non-Executive Director and Chair of the Remuneration
Committee, Katherine Innes Ker will also reach the ninth anniversary of her
appointment during 2026. We are committed to maintaining the right balance of
skills, experience and diversity while at the same time introducing fresh
perspective to the Board. Over the coming year the Nomination Committee will
continue with a search process to identify new Independent Non-Executive
Directors.
GOING CONCERN
The Group's credit facility comprises a committed revolving credit facility
(RCF) of £170m extending to June 2028, which was extended following the
exercise of a 17-month extension option during 2025. At the balance sheet
date, borrowings against the facility totalled £62m with £108m of headroom
remaining. The cash balance stood at £6.1m with reported net debt before
leases of £55.7m (2024: £84.9m) (net debt is presented inclusive of
capitalised arrangement fees). The Group also benefits from an uncommitted
overdraft facility of £10m which was undrawn at the year-end.
The Group meets its working capital requirements through these cash reserves
and facilities, and closely manages working capital to ensure sufficient daily
liquidity and prepares financial forecasts under various scenarios to ensure
sufficient liquidity over the medium-term. Management maintains strong
relationships with the Group's lenders and advisors, and remains confident in
the Group's ability to continue to access the financing it requires.
The facility is subject to covenant restrictions of leverage (net
debt/adjusted EBITDA) (as measured before leases) of less than 3 times and
interest cover of greater than 4 times. The covenants are subject to testing
on a half yearly basis. The Group has comfortably traded within its covenants
throughout 2025 and anticipates remaining within these throughout 2026.
Management have modelled two financial scenarios for the 18-month period to 30
June 2027, comprising a base case and a plausible downside scenario,
reflecting both macroeconomic and industry-specific projections. In addition
to this, a reverse stress test has also been modelled.
Assumptions underpinning these scenarios are outlined as follows:
• The base case scenario is aligned to our current demand
expectations, with 2026 sales volumes expected to be similar to 2025;
• Management continues to align production to anticipated sales,
minimising inventory growth. In addition, capital expenditure continues to
reduce from prior years, with the Group's spend on strategic projects largely
complete, increasing free cash flows;
• With leverage now returned to normalised levels, and reflective of
our lower capital expenditure requirements going forward, the Board's
intention to commence the return of surplus capital to shareholders with a
£20m share buyback programme has been included; and
• The Group's plausible downside scenario takes into account the
lowest levels of market demand seen across our products since 2022. Product
dependent, this ranges up to 40% below the levels last seen in 2022. 2022 is
considered to be representative of a normalised market for the Group and as
such is seen as a reasonable benchmark for scenario modelling. It is not
considered plausible that demand could fall further than the assumptions
detailed within the downside scenario laid out below.
Scenario Sales volume assumptions Management mitigations
Base Sales volumes remain between 12% and 25% below 2022. Volumes improve in 2027 None necessary
but remain up to 22% below 2022
Plausible downside Product dependent, volumes return to their lowest level since 2022, which is a Proposed share buyback programme is paused
reduction of between 23% and 38% relative to 2022. Volumes begin to recover in
2027 but remain up to 36% below 2022
Under both of the above scenarios, there is no breach in covenants throughout
2026 and in the period up to 30 June 2027.
In addition to the scenarios, the Group has prepared a reverse stress test to
determine the level of market decline that could potentially breach covenants,
before further mitigating actions are taken. The reverse stress test
indicated, that should volumes fall by a further 16% from the plausible
downside, the Group would be at risk of breaching its covenants. This is
viewed by the Board to be a highly unlikely scenario. The Board remains
confident in the Group's ability to benefit significantly as markets recover
and its strategic investments generate returns.
Further to this, in the event of sales volumes falling in line with those
modelled in the reverse stress test, the Group would seek to enact further
mitigating actions including additional cost savings, production reductions,
curtailment in the quantum of dividend distributions and the sale of surplus
land and buildings.
Taking the above into consideration, the Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the going concern period to 30 June 2027. The Group therefore
adopts the going concern basis in preparing this consolidated financial
information.
FORWARD LOOKING STATEMENTS
Certain statements in this announcement are forward looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations
will prove to have been correct. Because these statements contain risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements. We undertake no obligation to
update any forward-looking statements, whether as a result of new information,
future events or otherwise.
DIRECTORS' RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
1. the Consolidated Financial Statements of the Group, which have been
prepared in accordance with UK-adopted international accounting standards in
conformity with the requirements of the Companies Act 2006 give a true and
fair view of the assets, liabilities, financial position and profit of the
Group; and
2. the announcement includes a fair review of the development and performance
of the business and the position of the Group, together with a description of
the principal risks and uncertainties that it faces.
Neil Ash
Ben Guyatt
Chief Executive Officer Chief Financial Officer
10 March 2026
CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
Note 2025 2024
£m
£m
Revenue 3 386.0 344.3
Cost of sales (264.5 ) (241.3 )
Gross profit 121.5 103.0
Distribution costs (52.5 ) (46.1 )
Administrative expenses (34.3 ) (29.4 )
Other operating (expense)/income (5.4 ) 6.4
Operating profit 29.3 33.9
Finance expense 5 (6.0 ) (9.1 )
Profit before tax 23.3 24.8
Income tax expense 6 (6.3 ) (7.3 )
Profit for the financial year attributable to equity shareholders 17.0 17.5
Other comprehensive income/(loss)
Effective portion of changes of cash flow hedges (net of tax impact) 0.2 (0.1 )
Total comprehensive income for the year attributable to equity shareholders 17.2 17.4
Earnings per share Pence Pence
Basic earnings 8 8.1 8.3
Diluted earnings 8 8.0 8.3
Note 2025 2024
£m
£m
Adjusted profit measures
Adjusted EBITDA 61.6 52.0
Exceptional items 4 (6.7 ) (2.9 )
Adjusting items 15 (6.0 ) 5.6
EBITDA 48.9 54.7
Depreciation and amortisation (19.6 ) (20.8 )
Operating profit 29.3 33.9
Adjusted profit before tax 36.0 22.1
Exceptional items 4 (6.7 ) (2.9 )
Adjusting items 15 (6.0 ) 5.6
Profit before tax 23.3 24.8
Adjusted earnings per share Pence Pence
Basic earnings 8 12.6 7.6
Diluted earnings 8 12.5 7.6
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2025
Note 2025 2024
£m
£m
Non-current assets
Intangible assets 11.5 11.6
Property, plant and equipment 262.8 263.8
Right-of-use assets 18.8 20.5
Derivative financial assets - 2.8
293.1 298.7
Current assets
Assets held for sale 9 3.0 -
Inventories 78.6 82.0
Trade and other receivables 35.4 39.0
Income tax asset 0.2 2.4
Cash and cash equivalents 6.1 15.2
Derivative financial assets 0.7 5.1
124.0 143.7
Total assets 417.1 442.4
Current liabilities
Trade and other payables (69.8 ) (68.7 )
Loans and borrowings 10 (0.2 ) (0.7 )
Lease liabilities (6.7 ) (5.8 )
Provisions for other liabilities and charges (8.4 ) (6.6 )
Derivative financial liabilities - (0.1 )
(85.1 ) (81.9 )
Non-current liabilities
Loans and borrowings 10 (61.6 ) (99.4 )
Lease liabilities (13.2 ) (15.1 )
Provisions for other liabilities and charges (8.7 ) (8.2 )
Deferred tax liabilities (14.0 ) (12.9 )
(97.5 ) (135.6 )
Total liabilities (182.6 ) (217.5 )
Net assets 234.5 224.9
Capital and reserves attributable to equity shareholders
Ordinary shares 2.1 2.1
Retained earnings 238.2 228.2
Cash flow hedge reserve - (0.2 )
Reserve for own shares (6.0 ) (5.4 )
Capital redemption reserve 0.2 0.2
Total equity 234.5 224.9
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
Note 2025 2024
£m
£m
Cash generated from operations 11 68.1 51.8
Interest paid (8.0 ) (10.0 )
Tax (paid)/credit (1.1 ) 0.4
Net cash inflow from operating activities 59.0 42.2
Cash flows from investing activities
Purchase of property, plant and equipment (14.5 ) (25.4 )
Purchase of intangible assets - (0.2 )
Net cash used in investing activities (14.5 ) (25.6 )
Cash flows from financing activities
Repayment of lease liabilities (6.0 ) (5.9 )
Dividends paid 7 (8.2 ) (6.3 )
Drawdown of borrowings 47.0 93.0
Repayment of borrowings (85.0 ) (103.0 )
Purchase of shares by Employee Benefit Trust (0.7 ) -
Proceeds from sales of shares by Employee Benefit Trust - 5.1
Financing fees (0.7 ) (0.3 )
Net cash used in financing activities (53.6 ) (17.4 )
Net decrease in cash and cash equivalents (9.1 ) (0.8 )
Cash and cash equivalents at the beginning of the year 15.2 16.0
Cash and cash equivalents at the end of the year 6.1 15.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
Note Ordinary Capital redemption reserve Reserve Cash flow Retained earnings Total
shares
£m for own hedge £m
equity
£m shares reserve
£m
£m £m
Balance at 1 January 2024 2.1 0.2 (14.2 ) (0.1 ) 219.8 207.8
Profit for the year - - - - 17.5 17.5
Other comprehensive loss - - - (0.1 ) - (0.1 )
Total comprehensive (loss)/income for the year - - - (0.1 ) 17.5 17.4
Dividends paid 7 - - - - (6.3 ) (6.3 )
Proceeds from sale of shares by Employee Benefit Trust - - 5.1 - - 5.1
Share-based payments charge - - - - 1.0 1.0
Share-based payments exercised - - 3.7 - (3.7 ) -
Tax on share-based payments - - - - (0.1 ) (0.1 )
Balance at 31 December 2024 2.1 0.2 (5.4 ) (0.2 ) 228.2 224.9
Note Ordinary shares £m Capital redemption reserve Reserve for own share £m Cash flow hedge reserve £m Retained earnings £m Total equity £m
£m
As at 1 January 2025 2.1 0.2 (5.4 ) (0.2 ) 228.2 224.9
Profit for the year - - - - 17.0 17.0
Other comprehensive income - - - 0.2 - 0.2
Total comprehensive income for the year - - - 0.2 17.0 17.2
Dividends paid 7 - - - - (8.2 ) (8.2 )
Purchase of shares by Employee Benefit Trust - - (0.7 ) - - (0.7 )
Share-based payments charge - - - - 1.4 1.4
Share-based payments exercised - - 0.1 - (0.1 ) -
Tax on share-based payments - - - - (0.1 ) (0.1 )
Balance at 31 December 2025 2.1 0.2 (6.0 ) - 238.2 234.5
1. General information
Forterra plc (Forterra or the Company) and its subsidiaries (together referred
to as the Group) are domiciled in the United Kingdom. The address of the
registered office of the Company and its subsidiaries is 5 Grange Park Court,
Roman Way, Northampton, NN4 5EA. The Company is the parent of Forterra
Holdings Limited and Forterra Building Products Limited, which together
comprise the Group. The principal activity of the Group is the manufacture and
sale of bricks, dense and lightweight blocks, precast concrete, concrete block
paving and other complementary building products.
Forterra plc was incorporated on 21 January 2016 for the purpose of listing
the Group on the London Stock Exchange. Forterra plc acquired the shares of
Forterra Building Products Limited on 20 April 2016, which to that date held
the Group's trade and assets, before admission to the main market of the
London Stock Exchange.
2. Basis of preparation
The consolidated financial information for the year ended 31 December 2025 has
been extracted from the audited consolidated financial statements, which were
approved by the Board of Directors on 10 March 2026. The audited consolidated
financial statements have not yet been delivered to the Registrar of Companies
but are expected to be published in March 2026 and will be available on our
website https://www.forterra.co.uk/. The auditors have reported on those
accounts; their report was unqualified and did not contain statements under
s498(2) or (3) of the Companies Act 2006.
This consolidated financial information has been prepared in accordance with
UK-adopted international accounting standards. Whilst the financial
information included in this preliminary announcement has been prepared in
accordance with IFRS, this announcement does not itself contain sufficient
information to comply with IFRS. This preliminary announcement constitutes a
dissemination announcement in accordance with Section 6.3 of the Disclosures
and Transparency Rules (DTR).
The financial information set out in this announcement does not constitute the
statutory accounts for the Group within the meaning of Sections 434 to 436 of
the Companies Act 2006 and is an abridged version of the consolidated
financial statements for the year ended 31 December 2025. Copies of the Annual
Report for the year ended 31 December 2025 will be mailed to those
shareholders who have opted to receive them by the end of April 2026 and will
be available from the Company's registered office at Forterra plc, 5 Grange
Park Court, Northampton and the Company's website (http://forterraplc.co.uk/)
after that date.
The consolidated financial information are presented in pounds sterling and
all values are rounded to the nearest hundred thousand unless otherwise
indicated.
Going concern
The Group's credit facility comprises a committed revolving credit facility
(RCF) of £170m extending to June 2028, which was extended following the
exercise of a 17-month extension option during 2025. At the balance sheet
date, borrowings against the facility totalled £62m with £108m of headroom
remaining. The cash balance stood at £6.1m with reported net debt before
leases of £55.7m (2024: £84.9m) (net debt is presented inclusive of
capitalised arrangement fees). The Group also benefits from an uncommitted
overdraft facility of £10m which was undrawn at the year-end.
The Group meets its working capital requirements through these cash reserves
and facilities, and closely manages working capital to ensure sufficient daily
liquidity and prepares financial forecasts under various scenarios to ensure
sufficient liquidity over the medium-term. Management maintains strong
relationships with the Group's lenders and advisors, and remains confident in
the Group's ability to continue to access the financing it requires.
The facility is subject to covenant restrictions of leverage (net
debt/adjusted EBITDA) (as measured before leases) of less than 3 times and
interest cover of greater than 4 times. The covenants are subject to testing
on a half yearly basis. The Group has comfortably traded within its covenants
throughout 2025 and anticipates remaining within these throughout 2026.
Management have modelled two financial scenarios for the 18-month period to 30
June 2027, comprising a base case and a plausible downside scenario,
reflecting both macroeconomic and industry-specific projections. In addition
to this, a reverse stress test has also been modelled.
Assumptions underpinning these scenarios are outlined as follows:
• The base case scenario is aligned to our current demand
expectations, with 2026 sales volumes expected to be similar to 2025;
• Management continues to align production to anticipated sales,
minimising inventory growth. In addition, capital expenditure continues to
reduce from prior years, with the Group's spend on strategic projects largely
complete, increasing free cash flows;
• With leverage now returned to normalised levels, and reflective of
our lower capital expenditure requirements going forward, the Board's
intention to commence the return of surplus capital to shareholders with a
£20m share buyback programme has been included; and
• The Group's plausible downside scenario takes into account the
lowest levels of market demand seen across our products since 2022. Product
dependent, this ranges up to 40% below the levels last seen in 2022. 2022 is
considered to be representative of a normalised market for the Group and as
such is seen as a reasonable benchmark for scenario modelling. It is not
considered plausible that demand could fall further than the assumptions
detailed within the downside scenario laid out below.
Scenario Sales volume assumptions Management mitigations
Base Sales volumes remain between 12% and 25% below 2022. Volumes improve in 2027 None necessary
but remain up to 22% below 2022
Plausible downside Product dependent, volumes return to their lowest level since 2022, which is a Proposed share buyback programme is paused
reduction of between 23% and 38% relative to 2022. Volumes begin to recover in
2027 but remain up to 36% below 2022
Under both of the above scenarios, there is no breach in covenants throughout
2026 and in the period up to 30 June 2027.
In addition to the scenarios, the Group has prepared a reverse stress test to
determine the level of market decline that could potentially breach covenants,
before further mitigating actions are taken. The reverse stress test
indicated, that should volumes fall by a further 16% from the plausible
downside, the Group would be at risk of breaching its covenants. This is
viewed by the Board to be a highly unlikely scenario. The Board remains
confident in the Group's ability to benefit significantly as markets recover
and its strategic investments generate returns.
Further to this, in the event of sales volumes falling in line with those
modelled in the reverse stress test, the Group would seek to enact further
mitigating actions including additional cost savings, production reductions,
curtailment in the quantum of dividend distributions and the sale of surplus
land and buildings.
Taking the above into consideration, the Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the going concern period to 30 June 2027. The Group therefore
adopts the going concern basis in preparing this consolidated financial
information.
3. Segmental reporting
Management has determined the operating segments based on the management
reports reviewed by the Executive Committee that are used to assess both
performance and strategic decisions. Management has identified that the
Executive Committee is the chief operating decision maker in accordance with
the requirements of IFRS 8 'Operating segments'.
The Executive Committee considers the business to be split into three
operating segments: Bricks, Blocks and Bespoke Products.
The principal activity of the operating segments are:
• Bricks: Manufacture and sale of bricks to the construction sector;
• Blocks: Manufacture and sale of concrete blocks and permeable
block paving to the construction sector; and
• Bespoke Products: Manufacture and sale of bespoke products to the
construction sector.
The Executive Committee considers that for reporting purposes, the operating
segments above can be aggregated into two reporting segments: Bricks and
Blocks and Bespoke Products. The aggregation of Bricks and Blocks is due to
these operating segments having similar long-term average margins, production
processes, suppliers, customers and distribution methods.
The Bespoke Products range comprises precast concrete (marketed under the
'Bison Precast' brand), which is typically made-to-measure or customised to
meet the customer's specific needs. The precast concrete products are
complemented by the Group's full design and nationwide installation services.
Costs which are incurred on behalf of both segments are held at the centre
and these, together with general administrative expenses, are allocated to the
segments for reporting purposes using a split of 80% Bricks and Blocks and 20%
Bespoke Products. Management considers that this is an appropriate basis for
the allocation.
The revenue recognised in the Consolidated Statement of Total Comprehensive
Income is all attributable to the principal activity of the manufacture and
sale of bricks, both dense and lightweight blocks, precast concrete, concrete
paving and other complementary building products.
Substantially all revenue recognised in the Consolidated Statement of Total
Comprehensive Income arose within the UK.
Segment revenue and results
2025 2024
Note Bricks and Blocks Bespoke Products Total Bricks and Blocks Bespoke Products Total
£m £m £m £m £m £m
Segment revenue 307.7 81.0 388.7 276.7 71.5 348.2
Inter-segment eliminations (2.7 ) (3.9 )
Revenue 386.0 344.3
EBITDA before adjusted items 56.9 4.7 61.6 49.0 3.0 52.0
Depreciation and amortisation (18.1 ) (1.5 ) (19.6 ) (19.1 ) (1.7 ) (20.8 )
Operating profit before adjusted items 38.8 3.2 42.0 29.9 1.3 31.2
Allocated exceptional items 4 (3.4 ) (3.3 ) (6.7 ) (0.1 ) (0.1 ) (0.2 )
Unallocated exceptional items 4 - (2.7 )
Allocated adjusting items 15 (6.0 ) - (6.0 ) 5.6 - 5.6
Operating profit 29.3 33.9
Finance expense 5 (6.0 ) (9.1 )
Profit before tax 23.3 24.8
Segment assets
2025 2024
Note Bricks and Blocks Bespoke Products Total Bricks and Blocks Bespoke Products Total
£m £m £m £m £m £m
Intangible assets 10.1 1.4 11.5 9.7 1.9 11.6
Property, plant and equipment 258.4 4.4 262.8 255.4 8.4 263.8
Assets held for sale 0.5 2.5 3.0 - - -
Inventories 75.6 3.0 78.6 79.0 3.0 82.0
Right-of-use assets 17.9 0.9 18.8 19.4 1.1 20.5
Segment assets 9 362.5 12.2 374.7 363.5 14.4 377.9
Unallocated assets 42.4 64.5
Total assets 417.1 442.4
Property, plant and equipment, intangible assets, right-of-use assets and
inventories are allocated to segments and considered when appraising segment
performance. Trade and other receivables, income tax assets, cash and cash
equivalents and derivative assets are centrally controlled and unallocated.
Other segment information
2025 2024
Bricks and Blocks Bespoke Products Total Bricks and Blocks Bespoke Products Total
£m £m £m £m £m £m
Intangible asset additions 3.6 - 3.6 0.1 - 0.1
Property, plant and equipment additions 16.1 0.4 16.5 27.7 0.2 27.9
Right-of-use asset additions 4.9 0.2 5.1 2.5 0.2 2.7
Customers representing 10% or greater of revenues
2025 2024
Bricks and Blocks Bespoke Products Total Bricks and Blocks Bespoke Products Total
£m £m £m £m £m £m
Customer A - - - 35.6 0.4 36.0
Customer B 16.2 22.9 39.1 - - -
4. Exceptional items
2025 2024
£m £m
Restructuring costs (6.7 ) (0.2 )
Aborted corporate transaction - (2.7 )
(6.7 ) (2.9 )
2025 exceptional items
During the year, the Group exited from two non-core businesses, the Formpave
block paving business and the Bison Bespoke Precast operation. As a
consequence of these operation closures, asset values at these sites are no
longer supportable by value-in-use assessments. Instead, in assessing the
carrying value of assets at these sites, management has relied on estimates of
fair value less costs to sell.
Following these assessments, the Group recognised impairments of £2.3m
(£1.0m at Formpave and £1.3m at Bison Bespoke Precast) against certain items
of plant and machinery, along with £0.8m against the right-of-use land asset
at Formpave. In addition, inventory at Formpave has been impaired by £0.9m to
reflect management's assessment of realisable values. Further restructuring
costs of £2.7m include redundancies of £2.5m (£0.7m at Formpave and £1.8m
at Bison Bespoke Precast) and a provision of £0.2m for site clearance works
at Bison Bespoke Precast.
2024 exceptional items
Exceptional items in 2024 relate to restructuring costs of £0.2m and
professionals fees associated with an aborted corporate transaction of £2.7m.
Presentation of exceptional items
Cost of sales Distribution costs Administrative expenses Total
£m £m
£m £m
2025
Restructuring costs (6.7 ) - - (6.7 )
(6.7 ) - - (6.7 )
2024
Restructuring costs (0.1 ) - (0.1 ) (0.2 )
Aborted corporate transaction - - (2.7 ) (2.7 )
(0.1 ) - (2.8 ) (2.9 )
Tax on exceptional items
The restructuring costs incurred in the year, including redundancies and legal
costs, were tax deductible.
5. Finance expense
2025 2024
£m £m
Interest payable on loans and borrowings 4.2 7.4
Interest payable on lease liabilities 0.9 1.0
Other finance expenses 0.1 0.1
Amortisation of capitalised financing costs 0.8 0.6
6.0 9.1
Interest payable on loans and borrowings is presented net of borrowings costs
which have been capitalised against qualifying assets. In the year to 31
December 2025, interest of £2.5m (2024: £2.1m) was capitalised against
qualifying assets, with an average capitalisation rate of 5.7%.
6. Taxation
2025 2024
£m £m
Current tax
UK corporation tax on profit for the year 4.9 3.2
Prior year adjustment on UK corporation tax 0.4 (2.4 )
Total current tax 5.3 0.8
Deferred tax
Origination and reversal of temporary differences 1.3 4.1
Effect of changes in tax rates - -
Effect of prior period adjustments (0.3 ) 2.4
Total deferred tax 1.0 6.5
Income tax expense 6.3 7.3
2025 2024
£m £m
Current tax
Profit before taxation 23.3 24.8
Expected tax charge 5.8 6.2
Expenses not deductible for tax purposes 0.4 1.1
Effect of prior period adjustments 0.1 -
Income tax expense 6.3 7.3
The effective tax rate (ETR) used for statutory measures is 27.1% (2024:
29.5%) and the adjusted ETR is 26.2% (2024: 27.1%). Deferred tax is calculated
at the rate at which the provision is expected to reverse. The UK main rate of
corporation tax increased to 25% on 1 April 2023. There has been no further
changes to the rate of corporation tax since the Finance Bill 2023.
7. Dividends
2025 2024
£m £m
Amounts recognised as distributions to equity holders in the year
Interim dividend of 1.9p per share (2024: 1.0p) 4.0 2.1
Final dividend of 2.0p per share in respect of prior year (2024: 2.0p) 4.2 4.2
8.2 6.3
The Directors are proposing a final dividend for 2025 of 4.3p per share,
making a total payment for the year of 6.2p (2024: 3.0p). This is subject to
approval by the shareholders at the AGM and has not been included as a
liability in this consolidated financial information.
8. Earnings per share
The calculation of earnings per Ordinary share is based on profit or loss
after tax and the weighted average number of Ordinary shares in issue during
the year. Adjusted earnings per share is presented as an alternative
performance measure to provide an additional year-on-year comparison. A
reconciliation between adjusted and statutory results is presented within note
15.
For diluted earnings per share, the weighted average number of Ordinary shares
in issue is adjusted to assume conversion of all dilutive potential Ordinary
shares. The Group has four types of dilutive potential Ordinary shares: those
share options granted to employees under the Sharesave scheme; unvested
shares granted under the Deferred Annual Bonus Plan; unvested shares granted
under the Share Incentive Plan; and unvested shares within the Performance
Share Plan that have met the relevant performance conditions at the end of the
reporting period. If, for any of the above schemes, the average share price
for the year is lower than the option price, these shares become
anti-dilutive and are excluded from the calculation.
Adjusted Statutory
Note 2025 2024 2025 2024
£m £m £m £m
Operating profit for the year 42.0 31.2 29.3 33.9
Finance expense 5 (6.0 ) (9.1 ) (6.0 ) (9.1 )
Profit before tax 36.0 22.1 23.3 24.8
Income tax expense 6 (9.4 ) (6.0 ) (6.3 ) (7.3 )
Profit for the financial year 26.6 16.1 17.0 17.5
Weighted average number of shares (millions) 211.0 210.6 211.0 210.6
Effect of share incentive awards and options (millions) 1.3 0.7 1.3 0.7
Diluted weighted average number of shares (millions) 212.3 211.3 212.3 211.3
Earnings per share Pence Pence Pence Pence
Basic earnings 12.6 7.6 8.1 8.3
Diluted earnings 12.5 7.6 8.0 8.3
Adjusted earnings per share is presented as an APM and is calculated by
excluding both exceptional and adjusting items as detailed within note 15 to
this consolidated financial information. The associated adjusted tax charge is
calculated using the rate excluding these exceptional and adjusting items,
being 26.2% (2024: 27.1%).
9. Assets held for sale
In the current year, management considers the associated assets held at its
Cradley and Somercotes sites to meet the classification of assets held for
sale, being available for immediate sale in their present condition and a sale
highly probable.
In both instances the fair value of the asset less costs to sell has been
assessed as exceeding the asset's carrying value, and there were no
liabilities directly associated with the assets. No impairment charge was
associated with these assets reclassified as held for sale during the year.
Site Classification 2025 2024
£m £m
Somercotes Land and buildings 2.1 -
Somercotes Plant and machinery 0.4 -
Cradley Land and buildings 0.5 -
3.0 -
10. Loans and borrowings
2025 2024
£m £m
Current loans and borrowings:
Interest 0.2 0.7
Non-current loans and borrowings:
Capitalised financing costs (0.4 ) (0.6 )
Revolving credit facility 62.0 100.0
61.8 100.1
The Group's credit facility comprises a committed revolving credit facility
(RCF) of £170m which, following the exercise of the extension option during
2025, extends to June 2028. The Group also benefits from an uncommitted
overdraft facility of £10.0m.
Interest is calculated using SONIA plus a margin, with the margin grid ranging
from 1.65% at a leverage of less than 0.5 times, extending to a margin of
2.75% when leverage exceeds 2.5 times.
The facility is subject to covenant restrictions of net debt/adjusted EBITDA
(as measured before the impact of IFRS 16) of less than 3 times and interest
cover of greater than 4 times.
On exercising the extension of our facility, the Group elected to remove the
link to long-term sustainability targets. The Group had missed these targets
following the sudden decline in its markets in 2023 and the resultant impact
on efficiency, meaning that the sustainability link was increasing borrowing
and compliance costs. The Group remains committed to its long-term
sustainability journey and the linkage of financing to these targets did not
influence decision-making in this area. The removal of the sustainability link
was assessed under the relevant modification guidance and was not considered
to constitute a substantial modification.
The facility remains secured by fixed charges over the shares of Forterra
Building Products Limited and Forterra Holdings Limited.
11. Notes to the Consolidated Statement of Cash Flows
2025 2024
£m £m
Cash flows from operating activities
Profit before tax 23.3 24.8
Finance expense 5 6.0 9.1
Exceptional items 4 6.7 2.9
Adjusting items 15 6.0 (5.6 )
Adjusted operating profit 42.0 31.2
Adjustments for:
Depreciation and amortisation 19.6 20.8
Movement in provisions 0.2 (5.6 )
Purchase of carbon credits (3.6 ) -
Settlement of carbon credits 2.7 6.0
Share-based payments 1.4 1.0
Other non-cash items (1.4 ) (1.9 )
Changes in working capital:
Inventories 2.5 13.8
Trade and other receivables 3.5 (8.0 )
Trade and other payables 1.8 2.8
Adjusted cash generated from operations 68.7 60.1
Cash flows relating to operating exceptional items (1.8 ) (6.5 )
Cash flows relating to operating adjusting items 1.2 (1.8 )
Cash generated from operations 68.1 51.8
12. Net debt
2025 2024
£m £m
Cash and cash equivalents 6.1 15.2
Loans and borrowings (61.8 ) (100.1 )
Lease liabilities (19.9 ) (20.9 )
Net debt (75.6 ) (105.8 )
Reconciliation of net debt
Note 2025 2024
£m £m
Adjusted cash generated from operations 68.7 60.1
Payments made in respect of exceptional items (1.8 ) (6.5 )
Receipts/(payments) arising in respect of adjusting items 1.2 (1.8 )
Cash generated from operations 68.1 51.8
Interest paid (8.0 ) (10.0 )
Tax (paid)/credit (1.1 ) 0.4
Net cash outflow from investing activities (14.5 ) (25.6 )
Dividends paid 7 (8.2 ) (6.3 )
Purchase of shares by Employee Benefit Trust (0.7 ) -
Proceeds from sale of shares by Employee Benefit Trust - 5.1
New lease liabilities (5.1 ) (2.7 )
Other financing movement (0.3 ) (1.1 )
Decrease in net debt 30.2 11.6
Net debt at the start of the year (105.8 ) (117.4 )
Net debt at the end of the year (75.6 ) (105.8 )
13. Financial instruments
Forward purchased energy contracts
The substantial energy requirements of the Group are closely managed to ensure
that the impact of fluctuating energy costs can be removed as far as possible;
allowing management to have some certainty over likely energy costs and
providing a reasonable basis on which to budget. Contracts with energy
suppliers are entered into allowing prices to be fixed, by month, for volumes
the Group expects to use. Under normal circumstances, the Group takes delivery
of and consumes all of the gas and electricity under each contract, and in
doing so satisfies the requirements under IFRS 9 to follow the own use
exemption in accounting for these. As such, the costs associated with the
purchase of gas and electricity are accounted for in the Statement of Total
Comprehensive Income at the point of consumption, and contracts are not held
at fair value.
The decline in the Group's market conditions during 2023, and subsequent
reductions made to production resulted in open forward contracts for some
periods where the committed volume of gas exceeded budgeted total consumption.
In these instances, the quantities which have been 'over purchased' are sold
back to the market, crystallising a realised gain or loss. As was the case in
prior years, any open contracts where management expects to sell surplus gas
back to the market fail the own use exemption, and in accordance with IFRS 9,
are accounted for as derivatives. As at 31 December 2025 the Group has
recognised a current asset of 0.7m (2024: £5.1m) in relation to these
contracts. No non-current asset has been recognised (2024: £2.8m). The values
are calculated with reference to all forward purchased contracts within which
a sale back to the market is expected to occur, and reflect not only the
portion of such contracts expected to be sold, but also the fair value of the
remaining quantity which is expected to be consumed by the Group during the
normal course of business.
For the purposes of internal reporting to management and the Board, the Group
continues to measure these contracts as if the own use exemption could still
be applied, recognising energy costs at the contracted rate in the period of
consumption. In order to allow users of the accounts to review this
operationally aligned reporting, the movement due to the fair value treatment
of energy derivatives since 31 December 2024, being a charge of £7.2m in the
statutory versus adjusted results, has been presented as an adjusting item in
this consolidated financial information.
The Group has not historically, and has no future plans to, intentionally
purchase gas or electricity to sell and these current circumstances are solely
the result of market conditions.
14. Related party transactions
Transactions with key management personnel
Key management personnel are those persons having authority and responsibility
for planning, directing and controlling the activities of the Group. The
Directors of the Company and the Directors of the Group's subsidiary companies
fall within this category.
2025 2024
£m £m
Emoluments including taxable benefits 3.5 2.7
Share-based payments 0.8 0.7
Pension and other post-employment benefits 0.2 0.2
4.5 3.6
Information relating to Directors' emoluments, pension entitlements, share
options and long-term incentive plans appear in the Remuneration Committee
Report within the Annual Report and Accounts, which are expected to be
published in March 2026.
15. Alternative performance measures
APM Definition and/or purpose
Adjusted EBITDA, adjusted EBITDA margin, adjusted operating profit (EBIT), These APMs are calculated by excluding both exceptional and adjusting items
adjusted profit before tax, adjusted earnings per share, adjusted operating
cash flow
Adjusted operating cash conversion Operating cash conversion is calculated as adjusted operating cash flow /
adjusted EBITDA
Net (debt)/cash before leases Net (debt)/cash before leases is presented as the total cash and
cash equivalent and borrowings, inclusive of capitalised financing costs and
excluding lease liabilities at the balance sheet date
Group: Revenue, EBITDA, EBITDA margin, Operating profit, Profit before tax
Adjusted Exceptional items Exceptional items Adjusting Adjusting Statutory
£m £m £m items items £m
£m £m
2025 Restructuring costs Aborted corporate transaction Realised gain on sale of surplus energy Energy contract derivatives
Revenue 386.0 - - - - 386.0
EBITDA 61.6 (6.7 ) - 1.2 (7.2 ) 48.9
EBITDA margin % 16.0 % - - - - 12.7 %
Operating profit (EBIT) 42.0 (6.7 ) - 1.2 (7.2 ) 29.3
Profit before tax 36.0 (6.7 ) - 1.2 (7.2 ) 23.3
Adjusted Exceptional Exceptional Adjusting Adjusting Statutory
£m items items items items £m
£m £m £m £m
2024 Restructuring costs Aborted corporate transaction Realised loss on sale of surplus energy Energy contract derivatives
Revenue 344.3 - - - - 344.3
EBITDA 52.0 (0.2 ) (2.7 ) (1.5 ) 7.1 54.7
EBITDA margin % 15.1 % - - - - 15.9 %
Operating profit (EBIT) 31.2 (0.2 ) (2.7 ) (1.5 ) 7.1 33.9
Profit before tax 22.1 (0.2 ) (2.7 ) (1.5 ) 7.1 24.8
Segmental: Revenue, EBITDA, EBITDA margin
Bricks and Blocks
Adjusted Exceptional items Adjusting items Adjusting items Statutory
£m £m £m £m £m
2025 Restructuring costs Realised gain on sale of surplus energy Energy contract derivatives
Revenue 307.7 - - - 307.7
EBITDA 56.9 (3.4 ) 1.2 (7.2 ) 47.5
EBITDA margin % 18.5 % - - - 15.4 %
Adjusted Exceptional items Adjusting items Adjusting items Statutory
£m £m £m £m £m
2024 Restructuring costs Realised loss on sale of surplus energy Energy contract derivatives
Revenue 276.7 - - - 276.7
EBITDA 49.0 (0.1 ) (1.5 ) 7.1 54.5
EBITDA margin % 17.7 % - - - 19.7 %
Bespoke Products
Adjusted Exceptional items Adjusting items Adjusting items Statutory
£m £m £m £m £m
2025 Restructuring Realised gain on sale of surplus energy Energy contract
costs derivatives
Revenue 81.0 - - - 81.0
EBITDA 4.7 (3.3 ) - - 1.4
EBITDA margin % 5.8 % - - - 1.7 %
Adjusted Exceptional items Adjusting items Adjusting items Statutory
£m £m £m £m £m
2024 Restructuring costs Realised loss on sale of surplus energy Energy contract derivatives
Revenue 71.5 - - - 71.5
EBITDA 3.0 (0.1 ) - - 2.9
EBITDA margin % 4.2 % - - - 4.1 %
2025 Adjusted Adjusting Exceptional items Statutory
£m items £m £m
£m
EBITDA 61.6 (6.0 ) (6.7 ) 48.9
Purchase and settlement of carbon credits (0.9 ) - - (0.9 )
Other cash flow items(1) 0.2 7.2 4.9 12.3
Changes in working capital:
- Inventories 2.5 - - 2.5
- Trade and other receivables 3.5 - - 3.5
- Trade and other payables 1.8 - - 1.8
Operating cash flow 68.7 1.2 (1.8 ) 68.1
16. Post balance sheet events
Within the year end results, the Company has announced the commencement of a
share buyback programme. The aggregate price of all shares purchased in 2026
will be no more than £20 million (excluding stamp duty and expenses) and any
Ordinary shares purchased under the programme will be cancelled immediately.
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