Forterra says income fell a quarter last year with general election set to stall any recovery

Brickmaker Forterra has said revenue last year will be nearly one quarter less than 2022’s figure when it reports its annual results in March.

In a trading update, the firm said turnover last year will end up at around £345m, a fall of 24% on the £455m posted the year before.

But it added that it was hiking its prices with “modest 2024 price increases recently communicated”.

It said that UK brick despatch rates were running at levels last seen in 2009 – when the economy was in the teeth of the global financial crisis – and added that “with a general election expected in 2024, demand is anticipated to remain subdued in the near term”.

But it said that interest rate reductions “will improve the affordability of new homes, thus increasing demand for our products”.

Last year, Forterra said it was mothballing two factories in Lancashire and West Yorkshire, while it has also reduced shifts and restructured its commercial and back office functions which it said will cost it £9m with £4m due to be paid in 2024. It said the rejig would save it £20m annually.

The firm is due to publish its 2023 results on 26 March.