Materials giant Forterra said its latest round of brick price rises has failed to stick.
Forterra announced its latest round of price hikes at the start of this year.
But in a half–year results announcement to the City today the firm said: “Selling prices remain relatively stable with competitive market conditions restricting our ability to implement our announced price increases.”
Forterra saw revenue for the six months to June 30 2024 fall to £162.1m from £183.2m as pre-tax profits reduced to £12.8m from £18.1m last time.
Forterra said its results were in line with a general 9% drop in brick dispatches so far this year with no immediate improvement on the horizon.
It said: “With expected reductions in interest rates now delayed into H2 and mortgage rates remaining high, the challenging trading conditions which have persisted in H1 are expected to continue in the near term.”
Neil Ash, Chief Executive Officer, said: “The Group delivered a solid performance in the first half of 2024, despite a continuing backdrop of challenging market conditions. Decisive management actions assisted in producing a result in line with our expectations and a better than expected net debt position at the period end.
“We are encouraged by the new Government’s focus on significantly increasing housing supply which will clearly provide medium to long-term structural benefits for Forterra. Our strategic investment in Desford and Wilnecote addresses previous capacity constraints and positions us well to satisfy increased demand for our products.
“While the short-term outlook remains challenging, as we look further ahead the Group is well positioned to capitalise on the recovery of our key markets as it occurs.”
