One of the UK’s largest independent brick and concrete slab makers is lining up to list on London’s main market.
Forterra, at one time the building materials part of the Hanson empire, has market leading positions in the manufacture of clay bricks and concrete blocks and is the maker of stylised flettons under the London Brick brand used in a quarter of Britain’s houses.
It is one of three firms that supply 90% the UK’s bricks and its listing follows fellow brick
Forterra has invested £55mln in its Measham facility to make what it claims is the largest, most modern and fully automated soft mud brick manufacturing facility in the UK.
Revenue grew at an average rate of 13% per annum between 2013 and 2015, as brick prices rose, and by 8% to £290mln in 2015.
Underlying earnings [EBITDA] rose by 29% to £71mln that year and margins picked up 3.9% to 24%.
“The fundamentals of our industry are attractive and with our efficient manufacturing base, strong positions across all product categories, long-standing customer relationships, and significant scope for future capacity expansion, Forterra is very well placed for the future,” said Stephen Harrison, chief executive.
The company’s current owner is US private equity group Lone Star, which acquired the business a year ago from HeidelbergCement.