Property & Construction

Forterra plc

Market Cap (£m) 427.2
Listing FULL LIST

Analysts

Company Description

Forterra is the UK's second biggest brick maker, owning nine plants with an annual capacity of 590 million bricks, and further expansion planned for Desford in Leicestershire. The Brick & Blocks division is also a major producer of concrete blocks, including the energy-efficient Themalite range. Its main ranges are economical 'mid-market' products aimed at volume housebuilders. It also offers the unique high-margin 'Fletton' bricks, which were used to build approximately a quarter of the current housing stock of England after WW2, and which are required by many planners for extension of those homes. The Bespoke Products division produces other specialist components used in housing and other sectors, including commercial and infrastructure. The former Hanson Building Products returned to the stock market in 2016.

Investment Summary

The main attractions include: 1. Brick is the overwhelming cladding product of choice for housebuilders. 2. A consolidated industry, dominated by three main players: Ibstock, Forterra and Austria's Wienerberger. There are fewer competitors than in past cycles and, we believe, a greater focus on returns rather than on market share. 3. Long-term growth prospects, led by the Government's commitment to significantly boosting housebuilding. HS2 and other infrastructure projects could boost Bespoke Products. 4. Focus on efficiency and cash generation. Other than the Desford project, the company has channelled most of its investment into projects that increase either energy efficiency or fixed cost recovery, rather than increasing volumes. Since the IPO, until the unique challenges of Covid, the company has regularly exceeded cashflow expectations.

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Company Management Team

  • Stephen Harrison

    Chief Executive Officer

    Stephen joined Hanson plc in October 2002 and held a variety of senior management roles within Hanson and the HeidelbergCement Group. Stephen was appointed Managing Director of Hanson Building Products, the predecessor to Forterra, in 2012. Stephen studied Economics at Kingston University in London and holds a Masters in Business Administration from Cranfield School of Management. Stephen is also an Officer of the Construction Products Association and a Director of the Brick Development Association.

  • Ben Guyatt

    Chief Financial Officer

    Prior to his appointment as CFO, Ben held the role of Director of Finance and Company Secretary having played a key role in the separation of the business from HeidelbergCement and the subsequent listing on the London Stock Exchange. Ben joined Hanson plc in 2006 and held a variety of senior finance and strategy roles within Hanson and HeidelbergCement. Previously Ben held financial management roles at insurance broker, Heath Lambert. Ben is a Chartered Accountant and holds a Bachelor of Arts degree with honours in Accounting and Finance from the University of the West of England.

Key Dates

Jan 2020
22nd
Q4 TU
Actual
Mar 2020
10th
Finals
Actual
May 2020
14th
AGM
Actual
Jun 2020
4th
Q2 TU
Actual
Sep 2020
10th
Interims
Actual
Nov 2020
24th
Q3 TU
Actual
Jan 2021
26th
Q4 TU
Actual
Mar 2021
9th
Finals
Actual
May 2021
18th
AGM
Actual
Jul 2021
29th
Interims
Actual
Nov 2021
25th
Q3 TU
Actual
Jan 2022
26th
Q4 TU
Actual
Mar 2022
10th
Finals
Actual
May 2022
24th
AGM
Actual
May 2022
25th
Q2 TU
Actual
Jul 2022
28th
Interims
Actual
Nov 2022
22nd
Q3 TU
Actual
Jan 2023
26th
Q4 TU
Estimate
Mar 2023
10th
Finals
Estimate
May 2023
25th
Q2 TU
Estimate
Jul 2023
28th
Interims
Estimate
Nov 2023
22nd
Q3 TU
Estimate