Masonry products giant buoyed by demand in housebuilding and repair maintenance
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East Midlands-headquartered masonry products manufacturer Forterra has hailed a strong trading performance, boosted by buoyant housebuilding and repair maintenance markets.
In the four months to the end of October, the company said brick sales volumes were up 6% against 2019, leaving year to date brick sales volumes in line with 2019.
It said significant cost inflation was experienced across a range of categories including energy, raw materials and transportation, and that concrete product selling price increases to recover cost inflation have already been achieved with significant brick price increases secured from January 2022.
“Accordingly, we expect to deliver a 2021 result in line with management’s expectations,” the company said.
Stephen Harrison, chief executive of Forterra, said: “The strong trading seen in the both the housebuilding and repair maintenance and improvement (RM&I) markets in first half of the year continued into the second half.
“As expected, we encountered significant pressures across our supply chain in the period, although, due to the agility of our operational management, we have been successful in limiting any disruption.
“We also experienced meaningful input cost inflation, which has had a short-term impact on margins, however we are mitigating this through significant selling price increases. Notwithstanding these factors, we continue to anticipate delivering a full year result in line with management’s expectations, with higher than expected revenues offsetting the increased cost base.
“Heading into 2022 we are optimistic about the continuing buoyant demand for our products, underpinned by favourable market fundamentals. With the brick capacity uplift provided by the new Desford brick factory now only a year away, and with the Wilnecote project increasing our presence in the commercial and specification market from 2023, we are confident that group performance will continue to strengthen.”