Property & Construction
Forterra plc
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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.
Recent Content
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
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.
