Forterra report strong trading in 2021
Strong trading throughout 2021; Upgraded guidance highlights benefits of new Desford brick factory
CLAY and concrete building product manufacturers Forterra say strong trading throughout 2021 saw results for the full year ended 31 December slightly ahead of market expectations, with full year brick sales volumes 33% ahead of 2020 and 1% ahead of 2019.
Revenue of £370.4 million in 2021 was up £78.5 million on 2020 (£291.9 million) but down £9.6 million on pre-pandemic 2019 (£380.0 million). EBITDA was £76.5 million in 2021 (2020: £18.5 million), whilst EBITDA margin was 25% (2020: 6.3%) and pre-tax profit was £56.8 million, compared with a loss of 5.4 million in 2020.
Forterra say construction of their new Desford brick factory remains on track with commissioning due at the end of 2022, and the factory now expected to deliver a 22% effective increase in brick production from 2025, with anticipated incremental EBITDA increased to around £25 million from around £15 million.
Meanwhile, Forterra’s £27 million Wilnecote brick factory refurbishment is proceeding according to plan, with the main contractor appointed.
Chief executive officer Stephen Harrison (pictured) commented: ‘We delivered a good financial performance in 2021, with strong trading throughout the year and full-year results slightly ahead of expectations.
‘Our markets continued to recover from the effects of the pandemic, with our brick sales volumes similar to 2019 and further growth only limited by production capacity and available inventory.
‘We continued our programme of organic investment, with the construction of our new Desford brick factory remaining on track for commissioning at the end of this year, and our Wilnecote refurbishment proceeding to plan.
‘With market conditions remaining highly supportive and Desford now expected to deliver a 22% effective increase in brick production and increased incremental EBITDA of £25 million from 2025, we are confident that the Group will achieve further progress in the coming year and beyond.’