(Alliance News) - Forterra PLC on Tuesday said trading to date remains robust, though warned of the impact of recent market instability on the housing sector.

Meanwhile, the Northampton, England-based building product manufacturer said that Neil Ash has been appointed as the group's new chief executive officer designate from April 3.

For the ten months ended October 31, the Forterra said that year-to-date sales volumes were in line with the year prior, reflecting ongoing production capacity constraints and record low inventory levels.

Group revenue for the period was 23% ahead of the year prior, driven by selling price increases implemented in January, April and October.

Forterra said it would continue to "act decisively" to recover ongoing cost inflation, following its most recent hike of brick prices last month by a further 17%.

The company has now secured almost 90% of its energy requirement for the remainder of the year, in conjunction with securing 60% of its 2023 gas requirement.

Looking ahead, Forterra highlighted developments at its production sites. At the new Deresford brick factory, production is progressing well, with the first bricks extruded and the first of two kilns now lit.

Bricks are expected to be available for consumer purchase from early 2023, with production accelerating throughout the year. Forterra anticipated the project will be completed within the original GBP95 million budget.

"The group enters this uncertain time in a position of strength having a strong balance sheet with low levels of debt and high levels of cash generation," said outgoing Chief Executive Officer Stephen Harrison.

"Inventories remain at record low levels and despite the current uncertainties we remain well-placed to mitigate the effects of a softening of demand by substituting imported bricks with domestically manufactured product."

In other news, Forterra said that Neil Ash has been appointed as the group's new CEO, and will resume his role on April 3, 2023, following Stephen Harrison's resignation.

Stephen Harrison will be stepping down as CEO during the first half of 2023, to allow time both to commission the new Desford brick factory and support an orderly transition.

Ash joins from the Belgian lightweight building materials manufacturer Etex SA/NV, where he currently leads the Building Performance division.

Forterra shares were trading 2.1% lower at 215.50 pence each in London on Tuesday morning.

By Holly Beveridge; hollybeveridge@alliancenews.com

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