Brick sales are down and precast concrete sales have slowed, Forterra said in a trading update today, in line with an overall market decline.
鈥淲hile volumes into the new build housing market have remained broadly in line with plan, trading in relation to distributors and non-residential applications has slowed," it said. "Key indicators such as UK national brick sales volumes, construction output, new housing starts, housing transactions and consumer confidence also point to further uncertainty in macroeconomic conditions.鈥�
It added: 鈥淧recast concrete sales have slowed in recent weeks despite good growth earlier in the year. Whilst a sustained improvement in productivity has now been achieved, the Bison precast business is unlikely to deliver the level of margin growth anticipated in the second half as a result of delays in a number of large contracts.鈥�
As a result, it said, this year鈥檚 profit before tax was likely to be 鈥榤odestly below鈥� last year's 拢64.8m.
Despite the headwinds, construction of the new 拢95m brick facility at Desford is progressing to plan with site clearance completed and foundations under way. The new plant remains on course to fire up in 2022.
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