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Published on: November 1, 2018

Electrical force majeure to hinder 2018 profits

Forterra has “marginally” pulled back profit guidance for FY 2018E due to the temporary closure of one of its brick plants, caused by a local power cut. We have cut our PBT estimate for the current year by £3m, at the high end of the company’s indicative £2 – 3m impact of the closure and repairs. This is the first profit warning since Forterra IPO’d in April 2016. The fact the shares rose on today’s announcement suggests to us the market interprets this entirely as force majeure.

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