AGM Trading update

RNS Number : 8862F

Forterra plc

23 May 2017

Forterra plc

AGM Trading update

Forterra plc, a leading UK producer of manufactured masonry products, provides this trading update for the four months ended 30 April 2017, ahead of its Annual General Meeting to be held later today.

Trading in the period has been good, building on the momentum seen towards the end of 2016. The new-build residential market continues to see robust levels of activity and brick sales volumes for the four months were well ahead of the same period in 2016, recognising that the comparative was softer due to supply chain destocking. As reported previously, price increases for the year have been agreed with most customers in order to cover the increases in the cost base. Overall Group revenue for the four months was 6% ahead of the prior year.

The project to replace the dryers at the Claughton brick facility in Lancashire is well advanced and on schedule to enable the kiln to be re-lit during the summer. Once completed, the project will increase production efficiency and add capacity of 5 million bricks per annum. The project to increase the gas supply at the Desford brick facility in Leicestershire is also progressing well, and the installation of new kiln burners will be carried out later in the year.

The Group continues to generate good levels of operating cashflow, with an expected increase in trade receivables during the busy spring selling season. Net debt at the end of April was c£89m compared with £92.3m at the start of the year.

The Board continues to expect another year of progress in 2017 with, as previously stated, a more balanced outcome for the current year between the first and second halves than in 2016, and its expectations for the full year are unchanged.

The Group's results for the six months to 30 June 2017 will be announced on 1 August 2017.

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