UK building materials supplier Forterra reports lower revenue and profit but improves margins via cost cuts and pricing actions.
Forterra posted a 12.7% decline in adjusted pre-tax profit to £14.5 million for the first half, as like-for-like revenue fell 9% to £169 million amid weaker construction demand. Lower sales volumes drove the drop, though adjusted EBITDA margin rose 70 basis points to 16% on cost reductions and pricing actions.
Adjusted EBITDA declined to £27 million from £29.9 million in the prior year, while working capital increased by £20 million, pushing net debt up to £74.5 million. The company maintained its full-year outlook in line with market consensus and expects stronger cash generation in the second half.
Forterra confirmed plans to complete a £20 million share buyback and paid a £0.017 interim dividend. It is also evaluating a £60–£65 million replacement facility for its Aircrete operations.