IN BRIEF: Forterra share surge 11% as ups dividend and raises guidance
Forterra PLC - Northampton, England-based clay and concrete product manufacturer - Reports increased revenue and adjusted earnings for the first half of the year, with demand for most products ahead of its own expectations. Revenue is up 20% to £195.1 million in the six months to the end of June from £162.1 million a year before, lifting adjusted pretax profit by 82% to £16.6 million from £9.1 million. The higher revenue is driven by strong volume growth and modest selling price progression, Forterra says. Statutory pretax profit falls by 23%, however, to £9.9 million from £12.8 million, hurt by restructuring costs, impairments of plant and equipment, and negative fair value movement on energy derivatives. Forterra raises its interim dividend by 90% to 1.90p per share from 1.00p a year prior.
Forterra now expects 2025 adjusted earnings before interest, tax, depreciation and amortisation to be ahead of its previous expectation. It is £29.9 million in the first half, up 23% from £24.3 million a year before, and Forterra expects second-half adjusted Ebitda to be ‘mostly ahead’ of that first-half result. ‘We saw a strong uplift in results in the period, supported by improved demand from the volume housebuilding sector, with despatches significantly ahead of the prior year,’ says Chief Executive Officer Neil Ash. ‘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.’
Current stock price: 204.76 pence, closed up 11% in London on Tuesday
12-month change: up 19%
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