Profits have halved at one of Britain’s biggest brick makers as rising interest rates hit demand for new homes. Forterra said it expects pre-tax profits of £18 million for the first half of this year – down from £37.3 million.
As a result the business – which recently opened Europe’s biggest brick factory in Desford, Leicestershire – said it had started consultations with staff working in “commercial and support” roles, which it said should save £3 million a year. As previously reported, it has also mothballed its Howley Park brick factory, in West Yorkshire.
The business said challenging market conditions had been compounded by the higher cost of borrowing which had hit the number of new homes being built. It warned that “further appropriate action” would be taken if demand didn’t improve.
