LONDON (ShareCast) - (Sharecast News) - Forterra's share price jumped 11% on Tuesday after the building materials group raised full-year targets on the back of a strong first-half performance, with sales surging by a fifth.
Chief executive Neil Ash hailed a "strong uplift in results" over the six months to 30 June, as improved demand from the volume housebuilding sector offset subdued activity in the repair, maintenance and improvement sectors, with UK brick industry despatches well ahead of last year.

"Looking beyond the current financial year, the Board remains confident that its recent investments in new production capacity leave the Group well placed to benefit from the continuing recovery of our key markets," Ash said.

With demand for Forterra's products said to be both ahead of the previous year and its previous expectations, second-half adjusted EBITDA is now expected to be modestly ahead of the first half.

The new outlook implies a full-year adjusted EBITDA figure of c.£60-61m, according to broker Peel Hunt, which it said was "5-7% ahead of our current forecast and c.3% ahead of consensus".

"This is expected to translate to adjusted PBT being significantly ahead of previous expectations due to broadly fixed depreciation and amortisation and reducing finance expense," the company said, though did not disclose any specific guidance.

The company, which specialises in products like clay bricks, concrete blocks and precast concrete flooring, said revenues jumped by 20.4% year-on-year to £195.1m in the first half, helped by strong volume growth and a modest increase in sales prices.

Adjusted EBITDA rose 23% to £29.9m, helped by a 30-basis point improvement in the adjusted EBITDA margin to 15.3%.

Meanwhile, operating cash flow surged 125.6% to £30m, leading to a bigger reduction in debt thant predicted, with net debt before leases falling to £69.4m from £84.9m at the end of 2024.



The stock was up 11% at 204p by 1244 BST, hitting its highest levels since March 2023.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE