Forterra to float on London Stock Exchange

Group to proceed with initial public offering of existing ordinary shares to institutional investors

FORTERRA have announced their intention to apply for admission of their ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority, and to trading on the London Stock Exchange’s main market for listed securities. Admission is expected to occur during April 2016.

As one of the country’s leading producers of manufactured masonry products with exclusive focus on the UK market, Forterra are only UK manufacturer with a significant offering of both clay bricks and concrete blocks.

Within their clay bricks product group, Forterra focus on the manufacture of high-volume, standardized extruded and soft-mud bricks, primarily for the new-build housing market. The Group is also the sole manufacturer of the iconic Fletton brick sold under the London Brick brand.

Fletton bricks were used in the original construction of nearly a quarter of England’s existing housing stock and Fletton brick sales are today targeted at the residential repair, maintenance and improvement (RMI) market, to match existing brickwork. 

Within their concrete blocks product group, Forterra are one of Great Britain’s leading producers of both aircrete and aggregate blocks, and owners of the Thermalite brand.

According to Forterra, the UK’s residential new build and residential RMI markets accounted for approximately 95% of Group revenue in 2015, with the remaining 5% attributed to the UK commercial construction market.

And with the UK population forecast to grow significantly in the coming years, the company’s directors expect the structural undersupply of housing to continue to grow, underpinning future demand for new housing and, therefore, building products.

Stephen Harrison, chief executive of Forterra, said: ‘As a leading, long-established producer of building materials focused solely on the UK, we are excited to begin this new period as an independent company with a listing on the London Stock Exchange.

‘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 are very well placed for the future. 

‘Listing as an independent business is the next step in realizing the significant potential that we see for Forterra and delivering on our plans for sustainable and profitable growth.’