Property & Construction
Forterra PLC
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Company Description
Forterra is the UK's second biggest brick maker, with nine plants with an annual capacity of 590 million bricks and further expansion planned for 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.
Recent Content
Robust performance amid FY22 challenges
10/03/2023 Forterra plc
Brick and concrete products group Forterra narrowly beat our estimates in yesterday’s FY22 results, which showed resilient trading […]
Strong FY22 performance, uncertainty ahead
25/01/2023 Forterra plc
Leading UK brick and concrete products group Forterra confirms in today’s trading update that FY22 adjusted PBT slightly […]
Forecasts maintained amid ‘robust’ trading
22/11/2022 Forterra plc
Leading UK brick and concrete products manufacturer Forterra has confirmed FY22E guidance in today’s trading update, which highlighted […]
Estimates nudged up after strong interims
28/07/2022 Forterra plc
We have nudged up our FY22E adj PBT by 3.1% from £67.0m to £69.1m following “strong trading throughout” […]
Strong demand and pricing fuel upgrades
25/05/2022 Forterra plc
We have raised our FY2022E PBT by 11% from £60.2m to £67.0m following yesterday’s AGM trading update, which […]
FY results ‘beat’ with ambitious growth plans
11/03/2022 Forterra plc
Brick and concrete products manufacturer Forterra has delivered FY2021 results slightly ahead of our and market expectations, with […]
Ending FY2021 with strong volumes and cash
26/01/2022 Forterra plc
Brick and concrete products manufacturer Forterra has confirmed it expects FY2021E results to be in line with its […]
FY outlook confirmed with cost rises contained
25/11/2021 Forterra plc
Brick and concrete products manufacturer Forterra has confirmed it expects FY2021E results will be in line with management […]
Estimates raised again amid housing surge
29/07/2021 Forterra plc
We have increased our FY2021E estimates again after the building materials producer pointed to a “modest upgrade in […]
‘Materially’ improved outlook lifts guidance
18/05/2021 Forterra plc
We have increased our FY2021E PBT, EPS and dividend estimates all by 16% after the building materials producer […]
“Sustained” recovery. “Sustainable” vision.
10/03/2021 Forterra plc
Brick and concrete products group Forterra’s FY2020 results nudged ahead of its previous guidance, which had been raised […]
Bumper year-end prompts further upgrade
26/01/2021 Forterra plc
Stronger than expected trading in November and December has prompted brick and concrete products group Forterra to raise […]
Guidance raised and dividends reinstated
24/11/2020 Forterra plc
Brick and concrete products group Forterra has raised its guidance for FY 2020E to above the current consensus […]
Post-lockdown bounce “exceeds expectations”
14/09/2020 Forterra plc
Trading since lockdown has “exceeded management expectations”, brick and concrete products group Forterra has confirmed in its HY […]
£55m placing as brick demand bounces back
02/07/2020 Forterra plc
Brick and concrete products manufacturer Forterra has raised c. £55m gross in an equity placing in order to […]
Sales recovering as housing lockdown lifts
03/06/2020 Forterra plc
Leading brick and concrete products manufacturer Forterra has issued a relatively positive update on trading, reporting a recovering […]
Flexible production restart unveiled
28/04/2020 Forterra plc
Britain’s second largest brick manufacturer has signalled a partial and phased recommencement of brick and concrete production in […]
Coronavirus risks prompt business suspension
25/03/2020 Forterra plc
Major brick and building products manufacturer Forterra has announced it is to suspend all business operations as soon […]
On track for FY 2020 despite ‘challenging’ start
10/03/2020 Forterra plc
Major brick and building products manufacturer Forterra remains on track to meet our FY 2020E forecast, having delivered […]
Resilient Q4 supports FY 2019 outlook
22/01/2020 Forterra plc
Leading brick and masonry products manufacturer Forterra has confirmed it expects to deliver underlying PBT in the FY […]
Political uncertainty frustrates end-markets
22/10/2019 Forterra plc
Leading brick and building materials producer Forterra has steered down FY 2019E guidance due to a slowdown in […]
Robust housebuilding keeps outlook on track
31/07/2019 Forterra plc
Improved volumes and prices continued to offset cost increases in the first half, amid a “robust” housebuilding market […]
Focus on cashflow pays dividends
20/05/2019 Forterra plc
Leading brickmaker Forterra has increased its dividend pay-out guidance, reflecting the strong cashflow that has been a hallmark […]
Steady state
13/03/2019 Forterra plc
Britain’s second largest brick producer beat consensus and our estimates, buoyed by continuing growth in housebuilding. Management maintained […]
Cashflow beats expectations (yet again)
16/01/2019 Forterra plc
Forterra’s year-end trading statement confirmed results are expected to be “in line” and the outlook for 2019 appeared […]
Electrical force majeure to hinder 2018 profits
01/11/2018 Forterra plc
Forterra has “marginally” pulled back profit guidance for FY 2018E due to the temporary closure of one of […]
Does sector weakness belie fundamentals?
18/10/2018 Forterra plc
Shares of housebuilders have fallen, possibly prompted by concerns about home prices and margins, potentially triggering weakness in […]
Stronger foundations?
30/07/2018 Forterra plc
Forterra’s guidance in its HY results today that FY 2018 results would be “in line” contrasts with this […]
Outlook fair despite ‘beastly’ weather
25/05/2018 Forterra plc
Forterra’s AGM statement revealed that poor weather from the ‘Beast from the East’ had delayed production and deliveries […]
Time to press the button
19/03/2018 Forterra plc
Two features stood out in Forterra’s first full year results since its IPO:another significant ‘beat’ on cashflow expectations; […]
Mind the gap
09/03/2018 Forterra plc
Next week’s FY 2017E results from Forterra, we envisage, are likely to feature the continuing sector theme of […]
Pump up the volume
25/01/2018 Forterra plc
Chancellor Philip Hammond’s Budget pledged to add 300,000 homes a year, up from 185,000 in 2016. This should […]
Solid H1 earnings and cash flow bode well for FY
01/08/2017 Forterra plc
Strong demand in the newbuild housing market helped towards a good first half result, in terms of meeting […]
Bison deal concretes group growth ambitions
28/07/2017 Forterra plc
Brick and concrete products manufacturer Forterra has broadened its end markets and added to the group’s growth prospects […]
Building momentum
26/05/2017 Forterra plc
Strong housebuilding data, encouraging statements from leading housebuilders and the Conservative Manifesto’s pledge to build 1.5 million homes […]
Happy returns
21/04/2017 Forterra plc
A year to the day after the IPO, Forterra’s US private equity owner has placed its entire remaining […]
Glass (at least first) half full
16/03/2017 Forterra plc
The top three brickmaker’s FY 2016 results announcement gave an upbeat outlook, for at least the first half […]
A tonne of bricks
03/03/2017 Forterra plc
Government aid to boost housebuilding could require at least half a billion more bricks by 2021, we estimate. […]
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.
Justin Atkinson
Non- Executive Chairman