Published on: January 26, 2021
Bumper year-end prompts further upgrade
Stronger than expected trading in November and December has prompted brick and concrete products group Forterra to raise its FY 2020E guidance for a second time, with particularly strong cashflow resulting in a year-end net cash position rather than our expectation of net debt. This morning’s trading statement increases EBITDA guidance by almost 9%, which feeds through to a 23% increase in our adj PBT estimate, with a corresponding rise in EPS and dividend. We do not intend to re-evaluate our FY 2021E forecasts results until March, but believe housing market indicators remain robust.