Property & Construction

Forterra PLC

  • Market Cap (£m) 327.7
  • Listing LSE

Analysts

Company Description

Forterra is the UK's second-biggest brick maker, with nine plants with an annual capacity of 690 million bricks pa, including Desford and Wilnecote. 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

In our view, Forterra's 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 UK 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

  • Neil Ash

    Chief Executive Officer

    Neil has almost three decades’ experience in the building materials sector and an impressive track record of improving performance and delivering growth. Previously at Etex, the Belgian lightweight building materials manufacturer, he led £2.4b n revenue Building Performance division. During his time at Etex Neil oversaw major capex projects, significant acquisitions, and developed its sales approach which delivered strong top line growth. His experience includes 15 years at Lafarge, where he undertook many roles, including the role of Vice President International Development and Sales and Commercial Director UK & Ireland of Lafarge Plasterboard. Neil has extended executive education programs at INSEAD (France) and IMD (Switzerland).

  • 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

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
25th
Q4 TU
Actual
Mar 2023
9th
Finals
Actual
May 2023
16th
Q1 TU
Actual
May 2023
23rd
AGM
Actual
Jul 2023
11th
Q2 TU
Actual
Jul 2023
27th
Interims
Actual
Oct 2023
11th
Q3 TU
Actual
Jan 2024
24th
Q4 TU
Actual
Mar 2024
26th
Finals
Actual
May 2024
16th
Q2 TU
Estimate
May 2024
21st
AGM
Actual
Jul 2024
27th
Interims
Estimate
Oct 2024
11th
Q3 TU
Estimate
Jan 2025
24th
Q4 TU
Estimate
Mar 2025
26th
Finals
Estimate