Forterra plc - Update confirms that higher selling prices converted into higher profits last year

Davy Research
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Forterra has confirmed that it achieved a significant jump in profits in 2022. As with Ibstock, the stimulus for this was significant increases in brick selling prices which offset input cost inflation. Not surprisingly, the tone of Forterra’s outlook comments is cautious. With increasing evidence of weakening prospects for UK new housing, we may look to lower our current 2023 estimates. Strategically, this year is of interest for Forterra in a couple of respects, namely the gradual ramp-up of output from the new Desford factory and the arrival in April of Neil Ash as CEO.