Source - Alliance News

Forterra PLC on Tuesday maintained its full-year outlook, despite ‘depressed’ activity in the first four months of the year.

The Northampton, England-based building product manufacturer said trading conditions in the first four months of the year has remains ‘challenging.’ It explained that ‘depressed’ activity levels have persisted through key markets, in part driven by the ‘exceptionally’ wet weather experienced in the first quarter.

Forterra said 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,’ it noted.

Looking ahead, Forterra said that whilst overall trading remains challenging, it has 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.’

It added that full year expectations remain unchanged, with greater weighting towards the second half than previously guided.

Chief Executive Neil Ash said: ‘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.’

Shares in Forterra were down 3.5% to 170.00 pence each in London on Tuesday afternoon.

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