Published on: October 22, 2019

Political uncertainty frustrates end-markets

Leading brick and building materials producer Forterra has steered down FY 2019E guidance due to a slowdown in sales to merchants and non-residential end-markets, reflecting “short-term political and economic uncertainty”. This should trim expectations in volumes, prices and margins, leading us to cut our FY 2019E and 2020E adjusted PBT estimate by 8% and 5.5% respectively. However, cashflow remains strong and we continue to believe the group remains strongly positioned to benefit from long-term growth in housebuilding demand, which remains a Government priority. 

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