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Mar 14 2018, 08:35 GMT
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.