New Residential Construction Helps Boost Forterra Revenue over 10% in 2017
Forterra’s revenue increased by 10.4%, as strong demand in the new-build residential market led to a double-digit increase in brick and aggregate block volumes.
UK-based brick manufacturer Forterra plc recently announced its financial results for the year ended December 31, 2017. Revenue increased by 10.4% (excluding the benefit of the Bison acquisition), as strong demand in the new-build residential market led to a double-digit increase in brick and aggregate block volumes. According to Forterra, its acquisition of Bison, which was completed in September for £20 million (approximately $28.5 million), provides the company with a leadership position in precast concrete market and a platform for future product development.
“Forterra delivered a strong profit and cash performance in 2017, our first full year as a listed company,” said Stephen Harrison, CEO. “Revenue was up over 10%, primarily due to a strong performance from the new build residential market, and we also completed the strategically important acquisition of Bison, which has given us a leadership position in the precast concrete products market. We are particularly pleased with our cash flow performance, which enabled us to reduce our net debt to EBITDA ratio to below one times after paying for the acquisition.
“Following our strong performance in 2017, the current year has started well with brick volumes for the first two months ahead of the comparable period last year. Whilst the housing maintenance and improvement market remains subdued, we continue to see good activity levels from the new build residential market and anticipate a more modest level of volume growth compared with the prior year. As anticipated, price increases have now been agreed with most customers in order to cover the increase in our cost base.
“Based on our order book and indications from major customers, our expectations for 2018 are unchanged. Whilst we are cautious of the impact of the current uncertainty on the UK economy, the board remains confident that the business is well-positioned to take advantage of the attractive market fundamentals and of its ability to deliver sustainable shareholder value.”
For more information, visit http://forterraplc.co.uk.