Forterra PLC
- Market Cap (£m) 343.9
- Listing LSE
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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.
Recent Content
Resilient H1, scope for ongoing improvements
27/07/2023 Forterra PLC
Forterra’s first-half results to June and FY23E guidance were largely outlined in its 11 July trading update. The […]
Resilient H1 but more gradual recovery in H2
11/07/2023 Forterra PLC
Forterra has announced it expects to report ‘resilient’ H1 23E results broadly in line with its expectations despite […]
YTD ‘in-line’ as cutting-edge factory is unveiled
18/05/2023 Forterra PLC
In its 16 May trading update, Forterra confirmed that it has traded in line with its expectations in […]
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 […]
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.
