Trading update

RNS Number : 1437X

Forterra plc

22 November 2017

Forterra plc

Trading update

Forterra plc, a leading UK producer of manufactured masonry products, provides this trading update covering the period from 1 July to 31 October 2017.

Trading in the period has continued to be underpinned by good activity levels in the new build residential sector, resulting in double digit growth of brick and aggregate block volumes for the ten months to October 2017 compared with the same period last year. Overall Group revenue for the ten month period was 12% ahead of last year after excluding the Bison acquisition.

The Group completed the acquisition of the trade and certain assets of Bison Manufacturing Ltd in September 2017. The integration of the business, which includes the transfer of certain product lines between the two existing Forterra precast concrete facilities and the new Bison facility in order to improve efficiency and maximise potential, is progressing to plan. The Group's precast concrete business has been rebranded as Bison Precast, recognising the strength of the Bison brand in the marketplace.

Following the completion of the investment project at the Group's Claughton brick facility in Lancashire resulting in an increased capacity of over 5 million bricks per annum (c11% of the existing plant capacity), production commenced in the second half in line with plan. A kiln at the nearby Accrington facility has been relit and the plant is expected to build up to full production utilising both kilns during 2018.

The Group continues to generate a strong level of operating cashflow and this, after the payment of £20m for the Bison acquisition and dividends of £13.8m, resulted in net debt of £87.2m at 31 October 2017 compared with £92.3m at the start of the year.

Based on the good trading performance in the year to date and the forward order book, the Board's expectations for the full year remain unchanged.

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