Davy Research

Forterra plc

Debt reduction highlight of solid 2017 results
Building products
Forterra plc

DAVY VIEW

The strength of the new housing market in the UK helped Forterra to deliver a sound performance in 2017. Results for the year were largely as expected with the exception of a much lower than forecast end-year net debt position. The group has indicated that the current year has started well with management’s expectations unchanged. Forterra enjoys the support of a healthy financial position (net debt/EBITDA of 0.8x) and has a trailing dividend yield of 3.2%. However, our relative preference is for Ibstock. It has a clear earnings catalyst (impact of its new brick factory) along with the attraction of the recently announced supplementary dividend policy.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Forterra plc

    Closing Price: 29550p

  • RATING 19/08/16

  • PREVIOUS RATING N/A

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