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Forterra forecasts better brick and block bounce-back

Forterra, the building materials manufacturer, is expecting better profits thanks to sales contuing their upward trend during the back end of last year.

A trading statement to the City this morning (January 26) showed that sales of bricks and blocks were 6% higher in November and December than the previous year. As a result, the company expects its pre-tax profits to be somewhere in the region of £16m, with sales around £290m.

The satement said: “Looking ahead, the steady improvement in trading through the second half of 2020, along with recent positive statements from our customers, provides growing cause for optimism, although uncertainty remains.

“The impact of the current Stamp Duty holiday coupled with the impending tapering of the Help to Buy scheme on underlying patterns of demand is unclear.

“Additionally, the wider economic implications of the UK’s new trading relationship with the EU and the longer-term economic impact of the Covid-19 pandemic remain uncertain.

“The Board continues to closely monitor both our markets and the wider economy and believes that the Group remains well-placed to benefit from a sustained recovery of our key markets with a structural under supply of housing in the UK expected to continue supporting long-term demand.

“In the shorter term, the strength of our balance sheet offers resilience against any further challenges ahead.”

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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