Forterra Share Discussion Threads

[thrumptasious] 13/1/2019 21:09

Best of luck indeed 😀 From a financial perspective the wider brick business will help support the Precast Division, that said as an investor I think the Bison acquisition will take a number of Years to recoup the £20 million it cost despite their CEO "Harrison" saying it would be Year. For a new investor Forterra Shares are a good price at the moment for an existing investor its a case of hanging in there.

[damanko] 09/1/2019 11:08

Yes it will... Bought an IC the other day for the first time in years, just to see what the tips of the year for 2019 are.

Sadly, Forterra is one, could be a kiss of doom. We'll see. As you might understand, the IC was quite gushing, have to say I remember a similar article on Polly Peck many years ago.

I'll leave you with this: "Optima fortuna"

[thrumptasious] 07/1/2019 21:35

Yes, "res ipsa loquitur" and looking at historical financial information (EBITDA) for the Forterra bespoke precast business £m

2015 - 6.6
2016 - 7.0
2017 - 6.3 (Bison acquired Sept 17 for £20 million)
2018 - 3.0

Following an investment of £20 million I suspect that the stake holders of the business would expect to see an improvement in operating profit and not a significant drop as shown above!

I am sure you will agree that the results don't make good reading and there is much to do to successfully and fully integrate Bison Precast into the Forterras business - It will be interesting to see performance for 2018 Year End.

[damanko] 07/1/2019 20:07

Interesting post Thrump, thanks for your input. Your first post I believe. I'm quite interested in where your information comes from, you seem quite firm in your opinions regarding Forterra's acquisition of Bison, and the ongoing prospects.

[thrumptasious] 06/1/2019 22:08

Forterra Bison precast business is likely to have disappointing results for 2018. The integration of the Bison Flooring Business acquired for £20 million in 2017 has not gone particularly well and as a result profits in this area will not meet expectations or budgeted levels. There has been high staff churn and a number of managerial changes within their precast business which is disappointing for a company that strives to be an employer of choice.

[skyship] 04/1/2019 14:19

FORT is Jonas Crosland's New Year tip in the IC. Apparently JC is a very well respected stock-picker.

[riverman77] 20/9/2018 20:53

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.

[cascudi] 04/9/2018 17:47

Huge volume in the last 2 days. What is happening?

[cascudi] 04/9/2018 13:24

Back to 300?

[danieldanj] 29/7/2018 02:35

Forterra (FORT) Earnings-Reaction to Keep an Eye

[damanko] 24/5/2018 11:30

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...

[slopsjon2] 22/5/2018 07:30

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."

[thorpematt] 18/4/2018 16:08

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.

[damanko] 08/3/2018 16:21

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.

[phillis] 06/3/2018 09:29

what is good for housebuilders must surely be good for brickmakers?

[return_of_the_apeman] 16/1/2018 17:06

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

[jamieb73] 15/1/2018 14:34

Daft question perhaps but anyone know if this company had direct link/contracts with Carillion?

[damanko] 09/1/2018 18:16

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.

[return_of_the_apeman] 08/1/2018 11:12

Couldn't get through the 300 barrier

[dannyb7] 03/1/2018 11:28

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?

[compnews1] 18/12/2017 08:44

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?

[...]

[damanko] 22/11/2017 10:06

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://www.bison.co.uk/blog/bison-acquisition-doubles-precast-production/

[o1dsmokie] 22/11/2017 08:39

WE NEED TO SEND 3M GRUNTS BACK OVERSEAS THEN THE HOUSING PROBLEM WILL SOLVE ITSELF!