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Published on: January 26, 2022

Ending FY2021 with strong volumes and cash

Brick and concrete products manufacturer Forterra has confirmed it expects FY2021E results to be in line with its expectations, as strong trading continued in Q4, with better-than-expected cashflow. Pre-IFRS 16 net cash of c.£40m is ahead of management expectations and our forecast of £24m. This has allowed the company to launch a £40m share buyback programme. Other than lifting net cash, our estimates are unchanged. Our adjusted FY2021E PBT estimate of £48.8m translates to a PER of 14.5x. We believe Forterra’s ongoing performance should be underpinned by housebuilding volumes and pricing power offsetting input cost inflation.

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