Forterra full-year profit rises nearly 50%, reduces dividend payout

(Alliance News) - Forterra PLC on Wednesday said profit rose nearly 50% during 2024, but reduced ...

Alliance News 12 March, 2025 | 2:41PM
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(Alliance News) - Forterra PLC on Wednesday said profit rose nearly 50% during 2024, but reduced its dividend due to strain on its balance sheet in "challenging" market conditions.

The Northampton, England-based clay and concrete product manufacturer said pretax profit during 2024 was GBP24.8 million, growing 45% from GBP17.1 million in 2023.

Revenue, on the other hand, fell 0.6% to GBP344.3 million from GBP346.4 million, and cost of sales decreased 1.8% to GBP241.3 million from GBP245.7 million.

Distribution costs reduced 5.1% to GBP46.1 million from GBP48.6 million, and other operating income multiplied to GBP6.4 million from GBP500,000.

Forterra declared a total dividend of 3.0 pence per share, down 32% from 4.4p as the result of a board proposal to temporarily reduce the level of dividend distribution.

"The board intends to keep its dividend policy under review and will look to return the level of distribution to the previous 55% [of adjusted earnings] as soon as market conditions and the balance sheet permit", said Forterra.

Shares in Forterra were up 4.0% at 165.40p in London on Wednesday afternoon. The stock remains down 4.5% over the past year.

"2024 saw the continuation of the challenging market conditions we have witnessed over the last two years, though the second half saw an improving position," said Chief Executive Officer Neil Ash.

"Our focus has been on the areas we can control and delivered a resilient performance by successfully aligning our production to demand and returning the group to a position of strong cash generation. We also continued to make good progress with our GBP140m strategic capital investment programme at Desford, Wilnecote and Accrington, which is now nearing completion."

Looking ahead, Forterra expects to deliver annual earnings before interest, tax, depreciation and amortisation of around GBP120 million in the medium term. Its 2024 Ebitda improved 24% to GBP54.7 million from GBP44.1 million.

CEO Ash continued: "Trading in the first two months of 2025 has continued the positive trends seen in the final quarter of 2024, with our brick despatches 17% ahead of the prior year. We are currently concluding our customer pricing discussions and expect to deliver necessary price increases to offset cost inflation. We continue to take encouragement from the government's ambition to materially increase housebuilding but remain wary of the challenges in delivering this.

"During 2025, we anticipate some recovery in our markets, whilst remaining mindful of the wider macroeconomic conditions. Following our significant strategic investment in increased manufacturing capacity, the group remains well-placed as its key markets recover."

By Emily Parsons, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Forterra PLC 159.00 GBX 0.00 -

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