Forterra trading strongly after Bison acquisition

Masonry products producer Forterra updated the market on its trading to 31 October on Wednesday, saying that it continued to be underpinned by “good activity levels” in the new build residential sector, resulting in double-digit growth of brick and aggregate block volumes for the 10 months to October compared with the same period last year.

The firm said overall group revenue for the 10 month period was 12% ahead of last year, after excluding the Bison acquisition.

Forterra completed the acquisition of the trade and certain assets of Bison Manufacturing in September.

The board said the integration of the business, which includes the transfer of certain product lines between the two existing Forterra precast concrete facilities and the new Bison facility in order to improve efficiency and maximise potential, was progressing to plan.

Its precast concrete business has been rebranded as Bison Precast, which the board said recognised the strength of the Bison brand in the marketplace.

“Following the completion of the investment project at the Group's Claughton brick facility in Lancashire resulting in an increased capacity of over five million bricks per annum [or] 11% of the existing plant capacity, production commenced in the second half in line with plan,” the board said in its statement.

“A kiln at the nearby Accrington facility has been relit and the plant is expected to build up to full production utilising both kilns during 2018.”

The group continued to generate a “strong level” of operating cash flow and that, after the payment of £20m for the Bison acquisition and dividends of £13.8m, resulted in net debt of £87.2m at 31 October, compared with £92.3m at the start of the year.

“Based on the good trading performance in the year to date and the forward order book, the board's expectations for the full year remain unchanged.”