Brick sales improve for Forterra
Brickmaking group Forterra saw volume sales improve by 33 per cent last year helped by continuing demand for new housing.
The group, which includes the Cradley Special Brick factory on Corngreaves Trading Estate, Cradley Heath, saw revenue improve from £291.9 million in 2020 to £370.4m as it went from a £5.4m pre-tax loss to a £56.8m profit.
There was strong trading throughout the year with volume sales also one per cent up on the pre-pandemic year of 2019
The construction of its new Desford brick factory remains on track with commissioning due at the end of this year. It is expected to deliver a 22 per cent increase in brick production output from 2025.
The £27m refurbishment of its Wilnecote brick factory at Tamworth, Staffordshire, is proceeding according to plan, with a main contractor appointed.
It is also investing £12m to manufacture clay brick slips at its Accrington factory.
Chief executive Stephen Harrison said: "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, our Wilnecote refurbishment proceeding to plan and new investments in Accrington and solar power generation announced today. "
Mr Harrison added: "Our order book remains strong and, although inflationary pressures continue, we remain confident of recovering these through selling price increases.
"We remain watchful as to the impacts of increasing macro uncertainty and supply chain pressures as well as increases in interest rates. Approximately 70 per cent of the group's 2022 energy requirements have been secured. "
