LONDON (ShareCast) - (ShareCast News) - Brickmaker Forterra's first half year revenues fell since becoming a public company as it turned off kilns at two sites due to low demand amid housebuilding uncertainty.
For the six months ended 30 June, revenue decreased by 3.2% to £146m, compared to the same period last year, and pre-tax profit fell 46.5% to £13m.

Brick sales decreased in the first half of the year as merchants and distributors had built up large stockpiles of bricks and reduced demand for new sales. But the company said in spring sales increased by double digits.

The company said that it could be affected by the UK's decision to leave the European Union as "broader uncertainty could inhibit investment and reduce expected demand".

Forterra, which listed on the main market of the London Stock Exchange in April with £360m, said due to the current economic uncertainty and sufficient brick inventory it had turned off kilns at its Accrington and Claughton brick manufacturing sites.

Chief executive Stephen Harrison, said: "Although there remains a degree of uncertainty through to the end of the year, trading in the first two months of the second half has been in line with our expectations, with brick volumes in both July and August ahead of the corresponding period for 2015. We will continue to be proactive and agile when dealing with any changes in market circumstances."

Earnings before interest, tax, depreciation and amortisation (EBITDA), fell 1.5% to £39.5m as the margin fell by 50 basis points to 27.1%.

As of 30 June net debt was £119m due to a strong cash flow of £32m, which was 11.5% from the previous year.

Earnings per share was down 1.6% to 12.5p each and a maiden dividend of 2p per share was declared.

Harrison added: "The group's leading positions in both clay bricks and concrete blocks, offering the broadest range of manufactured masonry products, place it in a strong position to benefit from attractive market fundamentals. With sound management of the cost base, ability to increase incremental capacity through low-cost projects and strong cash generation, the board remains confident that Forterra's strategy will drive value for shareholders."

Shares in Forterra up 0.45% to 166.75 at 1049 BST.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE