Forterra PLC on Wednesday noted continued challenging market conditions but expects recent reductions in mortgage interest rates to improve the affordability of new homes.

The Northampton, England-based building product manufacturer said adjusted earnings before interest, tax, depreciation and amortisation will be slightly ahead of its own previous expectation for 2023, which it did not define.

Revenue declined 24% annually in 2023 to £345 million from £455 million.

The company said that despite weak demand, pricing across its range of products remained resilient, emphasising modest price increases in 2024.

Looking ahead, Forterra said the outlook was uncertain, and citing the UK’s expected general election for 2024, ‘demand is anticipated to remain subdued in the near term.’

It added that with long term under supply of housing in the UK set to continue to worsen, it remains confident in its ability to benefit as the company’s key markets recover.

‘Recent reductions in mortgage interest rates will improve the affordability of new homes, thus increasing demand for our products,’ Forterra said.‘

The company will release its 2023 results on March 26.

Forterra shares rose 2.7% to 162.00 pence each on Wednesday afternoon in London.

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