Updates

Forterra

September 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Brick maker Forterra’s interim results were slightly ahead of expectations with revenues and EBITDA both ahead 24% to £223m and £46m, respectively. Eps rose 45% to 13.5p.There’s no sign of a let up in demand with brick and block prices rising 30% to prevent rising costs from eating into profitability. EBITDA margins rose 0.2% to 20.7%.Total capex was £21.3m of which £15.8m related to the new Desford factory, which is on schedule for commissioning late this year. The Wilnecote factory is to be shut in September for redevelopment and restarted in Q4 ’23 while a new brick slips line is due to begin Q4 ’23.Forterra has bought back £20.6m shares with a total of £40m expected by the year end.Highlighted at 277.5p i ...

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Somero

Brickability

Forterra (April 2023)

Forterra (January 2023)

Forterra (April 2022)

Forterra (March 2022)

Forterra - Management upgrade expectations (October 2021)

Forterra (July 2021)

Forterra - Brick manufacturer benefiting from buoyant house builder order books (April 2021)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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