Annual brick sales up 33pc for Forterra

Full year brick sales volumes were 33 per cent up on 2020 and one per cent ahead of 2019. Brick sales in the second half of the year were five per cent ahead of the pre-pandemic year.

The group said its £27 million investment in its factory at Wilnecote, Tamworth, is progressing according to plan. The aim is to expand output by 20 per cent. Commissioning is expected in the second quarter of 2023.

Chief executive Stephen Harrison said: "The strong customer demand seen through 2021 continued up to the end of the year, with 2022 trading continuing where 2021 ended. Having successfully delivered sizeable price increases across our product ranges we are confident of delivering meaningful growth in 2022. We remain watchful of further inflationary cost pressures, and we will apply further price increases as necessary.

"The continued strength of demand for our products bodes well, with customers already keen to secure supply ahead of the commissioning of our new brick factory at Desford later this year. We expect 2022 will be an important year as we prepare for a step change in output and financial performance from early 2023."

Forterra has also announced a share buyback programme to return £40m to its shareholders in addition to its previously announced decision to increase dividend distributions to 55 per cent of earnings.

"This is a sign of confidence in the business and demonstrates our ability to deliver attractive returns to shareholders whilst still investing for the future.

"We are confident that our growth strategy will deliver long term shareholder value. Underpinned by the strength of our cash generation we will continue to invest in new highly efficient and sustainable manufacturing capacity, as we benefit from the shortage of quality housing in the UK and the constrained UK manufacturing capacity for the products needed to increase housing supply," added Mr Harrison.

Full year revenue is expected to total approximately £370m – a 27 per cent increase on 2020 and a three per cent reduction on 2019. Performance against the 2019 comparative reflects the closure of its pre-cast concrete factory.

The full year results are to be announced on March 10.