Analysts had been expecting underlying number of £55m but this will now be around £50m, brickmaker warned
Brickmaker Forterra has warned profit will be lower this year with sales falling in the wake of the ongoing housing slump.
In an update to the City this morning, the firm said revenue in the 10 months to the end of October was £283m, down 12% on the same period last year.
It added that underlying profit would now be around £50m from the £55m analysts had been expecting.
It said: “The Group has announced inflationary price increases effective from January 2027. However, in the absence of meaningful improvement in volumes, profitability will remain constrained by the fixed cost base, with production levels being actively managed to align with demand until market conditions improve.”
Forterra said it was expecting to rake in £12m from two land sales by the end of the year and had made a further £2m in cost savings.
And it became the latest business to flag up concerns over the delay to the introduction of the government’s Your First Home Initiative.
Several housebuilders, including Gleeson and Vistry, have expressed worries about the hiatus caused by its introduction next April and Forterra said: “Your First Home is a welcome development and should provide support to the housing market over time.
“However, with its delayed introduction, alongside continued pressure on housing affordability and consumer confidence, the Group expects market conditions to remain challenging in the near-term.”
No comments yet