Business
Post close half year trading update
Post close half year trading update.
About this update from Forterra Plc
[{"type":"text","content":"\n\n11 July 2023\n \nFORTERRA PLC\n \nPost close half year trading update\n \nIn advance of the publication of our half year results on 27 July 2023 Forterra plc (the 'Group'), a leading UK manufacturer of essential clay and concrete building products, provides this trading update for the six-month period ending 30 June 2023 (the 'period').\n \nKey points\n \n· Resilient H1 results broadly in line with our expectations, delivered against a backdrop of challenging trading conditions\n· We expect to report H1 revenues of approximately £183m, adjusted EBITDA of approximately £30m and adjusted PBT of approximately £18m\n· Progressive signs of market improvement seen through May and June, although this improvement has been less pronounced than previously anticipated\n· Considering the increasingly uncertain macroeconomic outlook we now expect to deliver full year 2023 EBITDA with a more balanced H1 / H2 split, reflecting only a modest improvement in trading conditions in H2\n \nH1 results\n \n· Subject to review by our auditors, we expect to report revenues for the period of approximately £183m, a decrease of 18% relative to the prior year (2022: £222.8m)\n· We expect to report a resilient H1 result broadly in line with management expectations, with adjusted EBITDA of approximately £30m (2022: £46.1m) and adjusted PBT of approximately £18m (2022: £37.3m)\n· Whilst market conditions remain competitive, our selling prices have remained firm and our cost base stable\n· As planned, we have rebuilt our inventory, with stock levels increasing by approximately £30m in the period, leaving us well placed to deliver the service levels our customers expect\n· We have maintained a strong and flexible balance sheet and expect to report a period end net debt before leases of approximately £50m (2022 year end: £5.9m) which is below 1x adjusted EBITDA on a LTM basis \n \nManagement actions\n \n· In response to the challenging market conditions, and with our brick production capacity increasing with the opening of the new Desford factory, as previously announced, we have mothballed our Howley Park brick factory and implemen...