Dividend
- Forterra PLC has proposed final dividend of 4.3p per share (2024: 2.0p) bringing total dividend to 6.2p (2024: 3.0p) in line with updated policy targeting c.2x cover.
- With leverage now returned to normalised levels and reflective of lower capital investment requirements going forward, the Board intends to commence the return of surplus capital to shareholders with an initial £20m share buyback programme in 2026. The intention is that this programme will continue beyond the end of this year although the Board will keep this under review.
Other Financial Highlights
- With12.1% revenue growth, Forterra's brick market share is recovering to historical levels. UK brick industry despatches rose by 6% year on year, despite the market softening in H2.
- Strong cash generation continued with adjusted operating cash flow of £68.7m reducing net debt (pre-leases) to £55.7m, equating to leverage of c.1.0 times.
- Strong 18.5% increase in adjusted EBITDA to £61.6m, margin improved by 90 bps to 16.0%; 62.9% increase in adjusted PBT drives a 65.8% increase in adjusted EPS.
