Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Building materials manufacturer Forterra saw a stronger than expected first half of 2025, with revenue of £195.1m up 20.4% compared with the same period a year ago. The increase was driven by strong volume growth and a slight increase in selling prices. Pre-tax profits dipped for £9.9m for the six months to June 30 2025 from £12.8m.
The UK brick industry despatches to the end of May 2025 increased by 14% compared with the year before and demand was driven mainly by the housebuilding sector, RM&I demand remaining subdued.
The group reported good progress with the commissioning of the new Wilnecote brick factory with the kiln now lit, and that the increase in market demand is likely to see an uplift in production at its flagship Desford factory in the second half. The commissioning of the brick slip production line at Accrington is also said to be progressing well.
Neil Ash, Chief Executive Officer, said: “We saw a strong uplift in results in the period, supported by improved demand from the volume housebuilding sector, with despatches significantly ahead of the prior year. This result, coupled with our expectations for the second half, gives us confidence to modestly increase our adjusted EBITDA expectations for the full year.
“We are also currently consulting on our strategic proposals to exit our non-core businesses of Formpave and Bison Bespoke, both of which will be margin and cash flow accretive. “Looking beyond the current financial year, the Board remains confident that its recent investments in new production capacity leave the Group well placed to benefit from the continuing recovery of our key markets.”
Formpave manufactures and sells concrete block paving, with 2024 full year revenue of £5.9m. Expected to be loss making this year, the business requires a significant level of capital investment to remain operational which has forced the move. Bison Bespoke precast generated revenue of £9.7m in 2024 but has failed to make money for a number of years.
