微密圈

Brickmaker Forterra expects profit to be better than expected this year after the firm said demand for its products in the housebuilding sector helped it turn in an improved set of interim figures.

It said in the five months to the end of May brick dispatches were up 14% on the same period last time with the firm seeing turnover in the six months to June jump 20% to 拢195m.

The firm said: 鈥淭he Board is encouraged by the Group鈥檚 H1 performance, with demand for most products ahead of both the prior year and the Board鈥檚 previous expectations.鈥�

It added the improving picture 鈥渋s expected to translate to adjusted PBT being significantly ahead of previous expectations鈥�.

Chief executive Neil Ash added: 鈥淲e saw a strong uplift in results in the period, supported by improved demand from the volume housebuilding sector, with despatches significantly ahead of the prior year. This result, coupled with our expectations for the second half, gives us confidence to modestly increase our adjusted EBITDA expectations for the full year.鈥�

But the firm warned it remained 鈥渃autious as to the fragility of the UK economy and the impact it may have on the new housing market鈥�.

Forterra said it was closing its Formpave block paving and the Bison Bespoke precast businesses which will cost it 拢4m.

Between them, the pair had a turnover of just under 拢16m last year and Forterra said Formpave was expected to be loss-making this year while Bison Bespoke 鈥渉as failed to exceed break even performance for a number of years and several attempts to improve upon this performance have not been successful鈥�.

Forterra鈥檚 pre-tax profit fell 23% to 拢10m in the half year although adjusted pre-tax profit before exceptional items was up 82%to 拢16.6m.

In a note on the interims, broker Investec said: 鈥淭he strong results are modestly better than we expected and much better than the prior year. Forterra has clearly benefitted from a strong volume recovery in H1, with price increases implemented to broadly offset cost increases.鈥�