StockMarketWire.com - Forterra says trading in the period from 1 July to the end of October has been encouraging, with brick sales volumes running ahead of prior year in each month and now also on a year to date basis.
The group continues to see strong levels of activity from the major housebuilders and the excess inventory being carried by merchants is working through the supply chain, as expected.
At the same time the level of brick imports has reduced.
Based on this, operating profit for 2016 is anticipated to be in line with management's expectations. The business continued to generate a strong level of operating cashflow, enabling net debt to be reduced further to £112.1m at 31 October 2016 after payment of the interim dividend of £4.0m (2.0 pence per share).
Net debt to EBITDA (calculated with reference to the last twelve months of earnings before exceptionals up to June 2016) was 1.7 times at October 2016 compared with 2.2 times at IPO.
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