Find Your Broker
Share Name Share Symbol Market Type Share ISIN Share Description
Forterra LSE:FORT London Ordinary Share GB00BYYW3C20 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.50p -0.69% 215.50p 215.00p 216.00p 218.50p 211.50p 211.50p 64,658 16:29:47
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 331.0 59.3 23.8 9.1 431.95

Forterra Share Discussion Threads

Showing 26 to 48 of 50 messages
Chat Pages: 2  1
Dropping sharply - I suspect this is due to Woodford reducing/closing his position. The same thing happeend to PSDL a few weeks ago. Anyway good opportunity to pick up very solid business at bargain level.
Huge volume in the last 2 days. What is happening?
Back to 300?
Forterra (FORT) Earnings-Reaction to Keep an Eye
Cheers Slopsjon2 & THORPEMATT, This thread continues to amuse and surprise me, in that it is so little used, and Forterra is seldom commented upon. Though sometimes that can be a good thing, it'll be interesting to see the number of posts over the next few years, when Brexit really does kick in. Brexit (in my opinion) will have little impact on Forterra's business, in fact it may even help. House builders will pay no import duties on produce that is solely UK sourced. The recent Bison acquisition will also help revenues. I invested shortly after the flotation in 2016, for simple, basic reasons, and definitely on a long term basis, to wit: Britain needs houses Houses need bricks UK Government is adamant that new housing stock will be increased Forterra is the UK's second largest brick maker Something like 40% of new housing providers use FORT's bricks I'm experiencing a 6% starting yield on my investment, reinvested twice each year of course. The lack of interest on ADVFN in Forterra makes me wonder about what exactly private investors are looking for when providing for their future. Sometimes I reckon we're almost back to dot com 'boom' stuff. IE growth stocks, not good old fashioned manufacturing companies, producing stuff the country desperately needs. And paying a decent dividend/income. Perhaps I'm too old fashioned. Perhaps...
Trading update In common with the rest of the sector, trading in the period was affected by the severe weather. This led to lost production and delays in construction activity which impacted demand for our products, particularly during March. In recent weeks we have seen activity levels resume and whilst there may be some lag from certain product sectors, we anticipate that overall the shortfall will be made up through the rest of the year. As reported previously, price increases for the year have been agreed with most customers in order to cover the increase in the cost base. Group revenue for the four months was 12% ahead of the prior year, including the benefit of the Bison business acquired in September 2017. The Group continues to generate good levels of operating cashflow, with an expected increase in trade receivables during the spring selling season. Net debt at the end of April was £72.6m compared with £60.8m at the start of the year. The outlook for the Group remains positive and the Board's expectations for the full year remain unchanged. Brick capacity expansion Having completed the evaluation of options for increasing brick capacity, the Board is pleased to announce that a planning application for redeveloping the site at Desford in Leicestershire is being finalised. The facility currently has an annual production capacity of 85m bricks, and the expansion project will lead to a new factory capable of producing up to 180m bricks per annum in total at an expected capital cost of £90-95m. The existing plant will remain operational until the new facility built alongside is completed. Subject to planning consent being received, it is anticipated that the new plant will be commissioned in late 2021 and that the capital expenditure will be spent over the period 2019 to 2022. Enabling and preparation costs of £1.5m relating to the project have already been committed and included in the capital budget for the current year. The expenditure will be funded from the free cash flow generated by the business as well as the Group's existing debt facility. The Desford expansion project is anticipated to deliver an internal rate of return (IRR) over 20 years in excess of 15% after tax. Stephen Harrison, Chief Executive Officer, commenting on the proposed investment said: "The high level of capacity utilisation in the UK brick industry, together with the attractive long term fundamentals on housebuilding supported by government policies, provides a sound basis for this major investment. "We have chosen redevelopment of the Desford site as the favoured option of those considered as it enables us to replace the existing plant with a larger modern facility, providing both additional capacity and the benefit of a lower production cost. This will give us the flexibility to continue to serve our customers and meet their requirements as the market grows. "The project is a key part of our strategy to grow our core business and pursue manufacturing excellence, driven by our strong customer relationships as well as our people. It will enable us to continue delivering sustainable shareholder value."
A significant breakout on the chart here I see. Awfully undervalued forward valuation PER of leass than 12. For such a quality business with rising broker forecasts I'd expect much higher rating.
Phillis, That was my rationale/reason for investing 2 years ago. It applied then, applies now, and I find it difficult to see that changing anytime soon. Possibly not in my lifetime. Rhetoric aside, the current and future governments of whatever label will remain under pressure to step up house building. And as you imply, houses need bricks.
what is good for housebuilders must surely be good for brickmakers?
Don't think so, but the best thing you can do is call the investor relations number Chart looks like it might go for a triple bottom @278p
Daft question perhaps but anyone know if this company had direct link/contracts with Carillion?
Danny, hello. The risks? Same as any other investment on the LSE... Just a small company, very decent dividend, in a government sponsored growth industry.
Couldn't get through the 300 barrier
Quite like the look of this one, especially with the mentioned 300k house build target. Any key risks that longer-term followers perceive that I might have missed?
It is reported that Woodford Investment Management has increased its share in FORT. It seems to indicates that the result is going to be good? hence his increasment? [...]
Yes, decent TS - no drama, just steady as she goes. With the UK government pushing for 300K new build houses each year, Forterra should be set fair. Also Bison looking okay, precast flooring in particular is a growth market, saving construction outfits time & labour costs. See link below: hxxp://
Good TS. I like companies that deliver as promised and FORT continues to do so. Despite the investments made and the clsures the cash generation has still been strong enough to REDUCE debt. For me it seem logical that without those "headwinds" effecting profits and cash production AND with the additional capacities from this year's investments the future is bright. A nice opportunity of late therefore to buy in on the dip. Fundamentals are strong. Chart looks to have some upside I think.
Has the news about Paul Lester really shaken up this stock?The price has just been dropping since yet the company still seems very strong with good future prospects.
Some relevant stuff from the results statement: EARNINGS PER SHARE AND DIVIDEND Earnings per share before exceptionals was 12.6 pence per share, an increase of 5.0% over the prior half year. This reflects the higher profit before tax and also the benefit of a lower effective tax rate of 20.1% compared with 20.9% in 2016. The Board has declared an interim dividend of 3.1 pence per share, to be paid on 12 October 2017 to shareholders on the register at 22 September 2017. The interim dividend for 2016 of 2.0 pence per share was based on post-IPO earnings. CASH FLOW, BORROWINGS AND FACILITIES Operating cash flow before exceptionals for the half year of £31.9m was £7.0m higher than the first half of 2016 due mainly to a better working capital performance. Inventories reduced by £1.8m since the start of the year and there was a good reduction in debtor days to 35 compared with 39 at December 2016. Capital expenditure of £3.0m was lower than the comparative period due to a deferral of some expenditure into the second half. Net debt at 30 June 2017 was £69.4m, a reduction of £22.9m from the start of the year due to the strong operating cash generation of the business. Net debt to EBITDA (calculated with reference to the last twelve months of earnings before exceptionals) reduced further to 1.0 times at 30 June 2017, comfortably below the maximum set by the banking covenant of 3.5 times. For this purpose, the net debt excludes capitalised finance costs in line with the calculation required by the banking covenant. The Group's existing debt facility, which was agreed as part of the IPO, was successfully amended in July 2017 and replaced by a new RCF-only facility of £150m with a group of major international banks. The term of the facility has been extended by a year to 2022. In addition, an accordion facility of £50m has also been agreed. The financial covenants are unchanged but there is a reduction in the interest cost under the new facility with interest set at LIBOR plus a margin of 125 to 225 basis points depending on the leverage. The new facility will provide a more efficient and flexible form of funding than the previous structure of a large term loan and much smaller RCF. The Group has no defined benefit pension scheme in place, with the legacy liabilities of the previous pension scheme left with the HeidelbergCement Group when the business was divested. BRICKS AND BLOCKS Revenue in the first half increased by £15.0m (13.8%), reflecting good demand from the new build residential market and the relatively weaker comparator. Brick volumes were up by double-digit percentage over the comparative period and soft mud volumes in particular were strong. The blocks business also performed well, with aggregate blocks volumes increasing strongly during the period, facilitated by additional shift and capacity utilisation at the Oxfordshire plant in particular. Whilst aircrete block sales volumes were lower than prior period, the business has performed more consistently in the first half of 2017, assisted by progress made in securing a number of alternative raw material supply sources. Production volumes of aircrete were higher than prior period and we have rebuilt inventory levels to maintain good customer service. EBITDA before exceptionals of £35.7m was up by £0.9m against the comparative for last half year. This was due to increased volumes and price rises which offset higher input costs for raw materials and energy. The result was adversely affected by sales mix and planned cost increases made since IPO as described above. Repair costs at our Measham facility were higher than last half year due to repairs at that plant being carried out in late 2015 to coincide with the shut-down for a major improvement project. The Group continues to invest in brand awareness and during the period, a focused 'London Brick' marketing campaign was launched, celebrating the heritage and 140 year anniversary. Whilst brick inventories reduced in the period, the Group continues to maintain adequate levels of inventory and uses its own distribution fleet to provide a good level of customer service. The project to replace the dryers at the Claughton facility in Lancashire has been completed to schedule, resulting in higher efficiency and a capacity increase of over 5 million bricks (c.11%). The total cost of the project is expected to be £3.3m, £0.2m below the initial estimate. The kiln has been re-lit over recent weeks and production will resume in the second half.
A little over a year since the vulture capital bods released it onto the LSE, and so far, so good. The yield on my purchase price is more than decent. This remains a long term hold for me, given what is happening all around us, I can see further upside. Especially as Lone Star sold its remaining shareholding/interest a few months ago, making for a larger free float. Now over the half billion mark in terms of market cap, so promotion to the FTSE 250 may well happen if things carry on as they are. Forterra seems to be under the radar - private investor wise for some reason, which has puzzled me since flotation last year. That is in no way a ramp, simply a fact.
Been buying myself recently. Decent results today growth in revenue whilst reduction in overheads looks fine to me and dividend increased by 50%, decent cashflow too. woody
Thanks for that BBD. To quote directly the relevant stuff from the article: "Another new holding is Forterra, a UK brick manufacturer. The UK brick industry has been structurally challenged for many years, with surplus capacity. As a result, the domestic industry has consolidated and Forterra is one of the last remaining players with a solid market position and a low cost base. The weakness in sterling since last summer has meant that importing bricks from Europe is no longer as economic and the long-term prospects for Forterra now look very attractive. We believe the company is well-positioned to benefit from steady growth in the UK construction industry in the years ahead and took the opportunity to buy a meaningful stake in the business at what we consider to be a very appealing valuation." The link you posted is dated today, 12/05.
Chat Pages: 2  1
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20181217 16:45:39