Revenue fell by more than £100m at Forterra, which is one of Britain’s biggest brick makers, as its profits were slashed in 2023, it has been revealed.
Northampton-headquartered Forterra has posted a revenue of £346.4m for the year, down from £455.5m, while its pre-tax profits went from £72.9m to £17.1m.
In an update to the London Stock Exchange, the company said the outlook for its industry “remains subject to considerable uncertainty and, with a General Election expected in 2024, demand is anticipated to remain subdued in the near term”.
Forterra added that “despite weak demand”, pricing across its range of products “remained resilient with further modest price increases expected in 2024”.
It also said that production has been reduced through the mothballing of factories, shift reductions and breaks in operations.
Chief executive Neil Ash said: “Forterra produced a resilient performance in 2023, in what turned out to be a very challenging year for our industry.
“Demand for new housing in the UK fell substantially, driven by increasing interest rates adversely impacting affordability and therefore demand for new homes.
“In light of this lower demand management took decisive action on our cost base. Assuming 2024 demand remains consistent with 2023, our management actions will ensure output is broadly matched with sales, thus limiting future inventory build.
“Importantly, however, these temporary reductions will not impact our ability to respond quickly when our markets recover.
“Indeed, one bright spot during 2023 was the commissioning of the new Desford brick factory, which gradually ramped up production throughout the year, and which will provide a significant capacity uplift in improved markets.
“With the long-term under-supply of housing in the UK continuing to worsen, and with our previous capacity constraints now addressed, the board remains confident in the group’s ability to benefit as our key markets recover.”