Forterra Trading Through End Of 2020 Exceeds Internal Forecasts

(Alliance News) - Forterra PLC said Tuesday the strong trading through seen through September and ...

Alliance News 26 January, 2021 | 10:33AM
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(Alliance News) - Forterra PLC said Tuesday the strong trading through seen through September and October continued through to the end of 2020.

The manufacturer of masonry building products noted this exceeded its own expectations.

Forterra's factories remain open and are continuing to supply customers.

Brick and Block revenue for November and December combined were 6% higher year on year, taking 2020 revenue to about GBP290 million, down 24% from GBP380.0 million in 2019.

As a result, Forterra expects to report earnings before interest, tax, depreciation and amortization and pretax profit of about GBP37 million and GBP16 million, respectively. This compares to pretax profit of GBP58.2 million in 2019.

"We ended the year with a better-than-expected liquidity position with net cash of approximately GBP15 million demonstrating our successful management of working capital but also reflecting some rephasing of payments on the Desford project. As at December 31, 2020 the group had access to committed credit facilities of GBP170 million of which GBP155 million was undrawn," Forterra added.

The company noted the the steady improvement in trading through the second half of 2020 gives it optimism for 2021, but it did note the current UK Stamp Duty holiday, which ends March 31, coupled with the impending tapering of the Help to Buy scheme creates uncertainty.

"The board continues to closely monitor both our markets and the wider economy and believes that the group remains well-placed to benefit from a sustained recovery of our key markets with a structural under supply of housing in the UK expected to continue supporting long-term demand. In the shorter term, the strength of our balance sheet offers resilience against any further challenges ahead," Forterra said.

Shares in Forterra were down 2.2% in London on Tuesday at 255.88 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Forterra PLC 293.00 GBX 0.69 -

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