Equity Research, Broker Reports, and media content on Centrica

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  • 01 Oct 19
STATE OF CHARGE - INVESTMENT OPPORTUNITIES IN EV CHARGING

Government bans on new fossil fueled vehicles in many major economies are likely to drive significant growth in electric vehicles (“EVs”) over the next twenty years. This will create growth in electricity demand from EV charging. The volume of energy to be supplied creates opportunities for both supply companies and generators and the provision of charge points is already creating a new industry. However, the timing of this demand puts pressure on local distribution infrastructure. While smart charging and vehicle to grid technology offer solutions, we believe these will only be partial given likely charging behaviour and as a result there will be demand for additional grid capacity and for other solutions. These other solutions include charger located storage and distributed generation.

Companies: CNA NG/ YU/ DRX GOOD RED SMS IKA AFC

  • 01 Oct 19
STATE OF CHARGE - INVESTMENT OPPORTUNITIES IN EV CHARGING

Government bans on new fossil fueled vehicles in many major economies are likely to drive significant growth in electric vehicles (“EVs”) over the next twenty years. This will create growth in electricity demand from EV charging. The volume of energy to be supplied creates opportunities for both supply companies and generators and the provision of charge points is already creating a new industry. However, the timing of this demand puts pressure on local distribution infrastructure. While smart charging and vehicle to grid technology offer solutions, we believe these will only be partial given likely charging behaviour and as a result there will be demand for additional grid capacity and for other solutions. These other solutions include charger located storage and distributed generation.

Companies: CNA NG/ YU/ DRX GOOD RED SMS IKA AFC

  • 30 Jul 19
CEO steps down, dividend slashed

FY18 had raised concerns about the sustainability of the dividend, and Centrica has finally cut it by nearly 60% after the catastrophic figures for H1. The group has announced its intention to exit from oil and gas production in order to refocus its activities on services around the transition to low-carbon. The group tried to reassure about the outlook for H2, confirming its cash flow and net debt full-year targets.

Companies: Centrica
  • 30 Jul 19
CEO steps down, dividend slashed

FY18 had raised concerns about the sustainability of the dividend, and Centrica has finally cut it by nearly 60% after the catastrophic figures for H1. The group has announced its intention to exit from oil and gas production in order to refocus its activities on services around the transition to low-carbon. The group tried to reassure about the outlook for H2, confirming its cash flow and net debt full-year targets.

Companies: Centrica
  • 20 Jun 19
Is Centrica a value trap?

In our last model update we affirmed that, in the long run, a recovery was still possible, but that we preferred to remain cautious for the time being and wait for some news flow positive enough to cause an inflection point. Unfortunately, in the absence of a positive element, we have now decided to review our approaches and adopt a more conservative view.

Companies: Centrica
  • 20 Jun 19
Is Centrica a value trap?

In our last model update we affirmed that, in the long run, a recovery was still possible, but that we preferred to remain cautious for the time being and wait for some news flow positive enough to cause an inflection point. Unfortunately, in the absence of a positive element, we have now decided to review our approaches and adopt a more conservative view.

Companies: Centrica
  • 21 Feb 19
2018-20 under pressure, causing uncertainty about the dividend

Centrica delivered a mixed set of results FY18, adjusted operating cash flow and net debt were within the target ranges, but EPS is 2.6% lower than expected. Due to the UK default tariff cap the low volumes in E&P and nuclear, group downgraded AOCF guidance for 2019 is 1.8-2.0, or 13.6% lower than the required average pace of growth to reach the 2018-20 target.

Companies: Centrica
  • 21 Feb 19
2018-20 under pressure, causing uncertainty about the dividend

Centrica delivered a mixed set of results FY18, adjusted operating cash flow and net debt were within the target ranges, but EPS is 2.6% lower than expected. Due to the UK default tariff cap the low volumes in E&P and nuclear, group downgraded AOCF guidance for 2019 is 1.8-2.0, or 13.6% lower than the required average pace of growth to reach the 2018-20 target.

Companies: Centrica
  • 22 Nov 18
Customers kept walking away in Q3 18

Centrica released a weak trading statement. Competition remained intense in the UK during the four months to October. The company lost 372k accounts in its Home business, while the E&P business suffered from unplanned outages forcing Spirit Energy to cut its 2018 production target by 5%. However, the group confirmed its 12p dividend target for 2018, ensuring a comfy 8.8% yield at today’s price, thus limiting the downside risk.

Companies: Centrica
  • 22 Nov 18
Customers kept walking away in Q3 18

Centrica released a weak trading statement. Competition remained intense in the UK during the four months to October. The company lost 372k accounts in its Home business, while the E&P business suffered from unplanned outages forcing Spirit Energy to cut its 2018 production target by 5%. However, the group confirmed its 12p dividend target for 2018, ensuring a comfy 8.8% yield at today’s price, thus limiting the downside risk.

Companies: Centrica
  • 31 Jul 18
Rising wholesale costs and intense competition weigh on H1 results

Centrica released a rather weak set of H1 results. EBITDA was broadly flat while adjusted operating profit was down 4% as profit recovery in E&P was more than offset by tough market conditions in the Retail segment. The group confirmed its FY18 objectives and expects to pay a stable dividend in 2018 (12p).

Companies: Centrica
  • 31 Jul 18
Rising wholesale costs and intense competition weigh on H1 results

Centrica released a rather weak set of H1 results. EBITDA was broadly flat while adjusted operating profit was down 4% as profit recovery in E&P was more than offset by tough market conditions in the Retail segment. The group confirmed its FY18 objectives and expects to pay a stable dividend in 2018 (12p).

Companies: Centrica
  • 14 May 18
Q1 chill boosts Centrica's retail activities, outlook confirmed

Centrica released a short Q1 trading update. Centrica’s management said that the overall performance has been good in the year to date, driven by higher demand for gas following the colder weather and confirmed its set of FY targets (including the 12p dividend), with revenue growth expected to be weighted towards the second half of the year.

Companies: Centrica
  • 14 May 18
Q1 chill boosts Centrica's retail activities, outlook confirmed

Centrica released a short Q1 trading update. Centrica’s management said that the overall performance has been good in the year to date, driven by higher demand for gas following the colder weather and confirmed its set of FY targets (including the 12p dividend), with revenue growth expected to be weighted towards the second half of the year.

Companies: Centrica
  • 22 Feb 18
The business division bites, consumer losses continue; dividend maintained until 2020

• The Centrica Business division hammers the group’s results. • The company lost 5.2% of its clients (-1.4m) in the customer segment and -7.1% in the Business one (-100k). • Price cap should hurt 2019 margins (and earnings), but impact unknown. • Reassurance on the dividend side and OCF guidance (£2.1-2.3bn) is a positive.

Companies: Centrica
  • 22 Feb 18
The business division bites, consumer losses continue; dividend maintained until 2020

• The Centrica Business division hammers the group’s results. • The company lost 5.2% of its clients (-1.4m) in the customer segment and -7.1% in the Business one (-100k). • Price cap should hurt 2019 margins (and earnings), but impact unknown. • Reassurance on the dividend side and OCF guidance (£2.1-2.3bn) is a positive.

Companies: Centrica
  • 23 Nov 17
Profit warning and accelerated customer losses; dividend under pressure

The group has stated in its trading update that it expects adjusted EPS for 2017 to be close to 12.5p, which is 17% below the 15.2p we previously expected. It confirmed its adjusted net debt target at £2.5-3bn and operating cash flows to be above £2bn. It has also raised its cost-cutting target for the year to £300m, from the previous £250m. It maintains its capex target at close to £1bn (with £500m for E&P). Moreover, driven by the group’s exposure to the retail market, it confirmed that the company lost 823k customers in the last three months. In addition to this, the group has stated that during the transition phase towards greater customer exposure and diversification to improve margins, Centrica would be forced to have a dividend cover below its historic levels.

Companies: Centrica
  • 23 Nov 17
Profit warning and accelerated customer losses; dividend under pressure

The group has stated in its trading update that it expects adjusted EPS for 2017 to be close to 12.5p, which is 17% below the 15.2p we previously expected. It confirmed its adjusted net debt target at £2.5-3bn and operating cash flows to be above £2bn. It has also raised its cost-cutting target for the year to £300m, from the previous £250m. It maintains its capex target at close to £1bn (with £500m for E&P). Moreover, driven by the group’s exposure to the retail market, it confirmed that the company lost 823k customers in the last three months. In addition to this, the group has stated that during the transition phase towards greater customer exposure and diversification to improve margins, Centrica would be forced to have a dividend cover below its historic levels.

Companies: Centrica
  • 02 Aug 17
Solid H1 and a price rise amid the transition

Centrica’s solid H1 numbers and 12.5% electricity tariff increase announced yesterday morning were both in line with market expectations. Operationally, the business was resilient given this year’s warm weather and challenging competitive dynamics. The political impact of the tariff hike was mitigated by protecting 200,000 vulnerable customers, a move we view as sensible given especially high levels of political risk in UK retail energy currently. The bigger story for Centrica shareholders remains the long-term shift away from upstream ‘asset businesses’ to tech-enabled customer businesses. Yesterday’s announcements do not change that strategy and the reality is that Centrica is very early in its strategic change of direction.

Companies: Centrica
  • 02 Aug 17
Solid H1 and a price rise amid the transition

Centrica’s solid H1 numbers and 12.5% electricity tariff increase announced yesterday morning were both in line with market expectations. Operationally, the business was resilient given this year’s warm weather and challenging competitive dynamics. The political impact of the tariff hike was mitigated by protecting 200,000 vulnerable customers, a move we view as sensible given especially high levels of political risk in UK retail energy currently. The bigger story for Centrica shareholders remains the long-term shift away from upstream ‘asset businesses’ to tech-enabled customer businesses. Yesterday’s announcements do not change that strategy and the reality is that Centrica is very early in its strategic change of direction.

Companies: Centrica
  • 01 Aug 17
The last member of the “Big Six” to hike prices

Centrica reported a mixed set of results for the first half. The company achieved higher revenue (+7% to £14.29bn) and EBITDA (+2% to £1,293m) despite unfavourable weather conditions and competitive pressures. However, the group saw an 11% contraction in adjusted net earnings to £449m. As a direct consequence, it announced a 12.5% increase in the price of electricity on the British Gas standard tariff, effective from mid-September onwards. This is the first increase in four years, while gas prices will remain the same. Adjusted operating cash flow (AOCF) fell by 9% to £1,242m, reflecting a one-off working capital inflow in 2016. However, net debt has improved to £2,941m (a 22% reduction), on the back of the portfolio rotation strategy. Moreover, the group confirmed its full-year guidance as its strategic transformation and efficiency programme are well on track: adjusted operating cash flow >£2bn net debt in the £2.5-3bn range by year-end a further £250m efficiency savings The company proposed a flat interim dividend of £3.6p/share (30% of the FY2016 dividend), in line with historical practices.

Companies: Centrica
  • 01 Aug 17
The last member of the “Big Six” to hike prices

Centrica reported a mixed set of results for the first half. The company achieved higher revenue (+7% to £14.29bn) and EBITDA (+2% to £1,293m) despite unfavourable weather conditions and competitive pressures. However, the group saw an 11% contraction in adjusted net earnings to £449m. As a direct consequence, it announced a 12.5% increase in the price of electricity on the British Gas standard tariff, effective from mid-September onwards. This is the first increase in four years, while gas prices will remain the same. Adjusted operating cash flow (AOCF) fell by 9% to £1,242m, reflecting a one-off working capital inflow in 2016. However, net debt has improved to £2,941m (a 22% reduction), on the back of the portfolio rotation strategy. Moreover, the group confirmed its full-year guidance as its strategic transformation and efficiency programme are well on track: adjusted operating cash flow >£2bn net debt in the £2.5-3bn range by year-end a further £250m efficiency savings The company proposed a flat interim dividend of £3.6p/share (30% of the FY2016 dividend), in line with historical practices.

Companies: Centrica
  • 23 Feb 17
Strong 2016 performance, but weak guidance and dividend below expectations

The group has provided strong results given the conditions, beating forecasts across the board on its 2016 performance. Revenue decreased by 3% yoy to £27.1bn, but the contraction is less dramatic than expected. Adjusted operating profit, on the other hand, increased by 3.8% yoy and is 6% above market consensus, with adjusted net income on the same path with 3.8% yoy growth to €895m. EPS decreased by 2% yoy due to the issued shares and the diluting effect of the capital increase made last year to finance the acquisition in the retail business. On a reported basis, the company had an operating profit of £2,486m and £1,672m in net income, a strong performance. The best part came from the operating cash flow, the main objective of the company, as this grew by 19% yoy to £2,686m. The E&P business is in positive territory with a positive free cash flow. As a result, net debt decreased by 27% to £3.5bn, far better than previously expected. The dividend payment will be 12p/share, in line with last year’s, but below expectations given that the expected improvement on cash flows should have benefited shareholder remuneration, but it didn’t. Operating cash flows are expected to be above £2bn, which implies a contraction in the performance achieved over the year. Investments will be limited to £1bn for 2017.

Companies: Centrica
  • 23 Feb 17
Strong 2016 performance, but weak guidance and dividend below expectations

The group has provided strong results given the conditions, beating forecasts across the board on its 2016 performance. Revenue decreased by 3% yoy to £27.1bn, but the contraction is less dramatic than expected. Adjusted operating profit, on the other hand, increased by 3.8% yoy and is 6% above market consensus, with adjusted net income on the same path with 3.8% yoy growth to €895m. EPS decreased by 2% yoy due to the issued shares and the diluting effect of the capital increase made last year to finance the acquisition in the retail business. On a reported basis, the company had an operating profit of £2,486m and £1,672m in net income, a strong performance. The best part came from the operating cash flow, the main objective of the company, as this grew by 19% yoy to £2,686m. The E&P business is in positive territory with a positive free cash flow. As a result, net debt decreased by 27% to £3.5bn, far better than previously expected. The dividend payment will be 12p/share, in line with last year’s, but below expectations given that the expected improvement on cash flows should have benefited shareholder remuneration, but it didn’t. Operating cash flows are expected to be above £2bn, which implies a contraction in the performance achieved over the year. Investments will be limited to £1bn for 2017.

Companies: Centrica
  • 16 Jan 17
How sustainable are current dividends

As rates rise, "yieldy" stocks require careful consideration. Sustainability/track record key.

Companies: AHTDCGADMPAYCNAISATQQ/IIICAPCCARDAGRJMATTRIGUBM
  • 16 Jan 17
How sustainable are current dividends

As rates rise, "yieldy" stocks require careful consideration. Sustainability/track record key.

Companies: AHTDCGADMPAYCNAISATQQ/IIICAPCCARDAGRJMATTRIGUBM
  • 15 Dec 16
Trading upgrade provides a guidance uplift

Centrica has published its Q3 16 trading update, raising its guidance expectations for 2016 with operating cash flows now expected in the £2.4-2.6bn range (+20%) rather than the £2bn earlier. Moreover, due to the gas assets’ better performance, benefits from the cost-cutting programme, and a strong performance in energy marketing and trading, the group expects the full-year EPS to be around 16.5p, whereas the market estimates something close to 15.4p (+7.1%). Nonetheless, the new expectations imply that EPS is expected to decrease by 4% yoy, although this is less than previously expected (-10.5%), which represents a substantial improvement.

Companies: Centrica
  • 15 Dec 16
Trading upgrade provides a guidance uplift

Centrica has published its Q3 16 trading update, raising its guidance expectations for 2016 with operating cash flows now expected in the £2.4-2.6bn range (+20%) rather than the £2bn earlier. Moreover, due to the gas assets’ better performance, benefits from the cost-cutting programme, and a strong performance in energy marketing and trading, the group expects the full-year EPS to be around 16.5p, whereas the market estimates something close to 15.4p (+7.1%). Nonetheless, the new expectations imply that EPS is expected to decrease by 4% yoy, although this is less than previously expected (-10.5%), which represents a substantial improvement.

Companies: Centrica
  • 28 Jul 16
Strong cash flow performance is reassuring

Results fell 13% yoy to £13.38bn. However, £969m from the re-measurement of energy contracts has positively affected the reported results leading to a 31.5% yoy increase in operating profit to £1.76bn and net income to have a 9.3% yoy increase to £1.15bn, translating into an EPS of 22.2p. As a result, the company has increased the interim dividend by 1% to 3.6p. Nevertheless, on an adjusted basis the results show a different story as operating profit fell 12% yoy to £853m, net income decreased 14% yoy to £507m with EPS reaching 9.8p. Although, on an adjusted basis, operating cash flows increased by 19%yoy to £1.37bn. The strong cash flow performance in the first quarter has allowed the group to increase capex by 16% yoy to £444m which, added to the £694m capital increase performed earlier in the year, has allowed the company to have a comfortable net increase in cash of £1.28bn at the half year mark. This has allowed the company to achieve a 23% yoy decrease in net debt, to reach £3.8bn. Concerning guidance, the 2016 full-year expectation on operating cash flows above £2bn is expected to be exceeded. Moreover, as strong progress has been achieved in cost-cutting measures, as £141m has been achieved in the first half, the 2016 cost cutting target has been raised to £300m. Headcounts are expected to be reduced by around 3,000 FTEs.

Companies: Centrica
  • 28 Jul 16
Strong cash flow performance is reassuring

Results fell 13% yoy to £13.38bn. However, £969m from the re-measurement of energy contracts has positively affected the reported results leading to a 31.5% yoy increase in operating profit to £1.76bn and net income to have a 9.3% yoy increase to £1.15bn, translating into an EPS of 22.2p. As a result, the company has increased the interim dividend by 1% to 3.6p. Nevertheless, on an adjusted basis the results show a different story as operating profit fell 12% yoy to £853m, net income decreased 14% yoy to £507m with EPS reaching 9.8p. Although, on an adjusted basis, operating cash flows increased by 19%yoy to £1.37bn. The strong cash flow performance in the first quarter has allowed the group to increase capex by 16% yoy to £444m which, added to the £694m capital increase performed earlier in the year, has allowed the company to have a comfortable net increase in cash of £1.28bn at the half year mark. This has allowed the company to achieve a 23% yoy decrease in net debt, to reach £3.8bn. Concerning guidance, the 2016 full-year expectation on operating cash flows above £2bn is expected to be exceeded. Moreover, as strong progress has been achieved in cost-cutting measures, as £141m has been achieved in the first half, the 2016 cost cutting target has been raised to £300m. Headcounts are expected to be reduced by around 3,000 FTEs.

Companies: Centrica

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Centrica. We currently have 22 research reports from 5 professional analysts.

Open
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Range Today
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52 Week
64.6/141p
Daily Volume
N/A
# Shares
5,819m
Daily Liquidity
(0.42%)
Pension Liability
£1,132m
Enterprise Value
£7,629m
Market Cap
£5,311m
Latest PE (hist)
6.35
Div Yield
16.85

Latest News/RNS

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06Jan20 12:30 RNS Total Voting Rights
06Jan20 12:30 RNS Director/PDMR Shareholding
23Dec19 09:30 RNS Disposal
11Dec19 16:30 RNS Director/PDMR Shareholding
11Dec19 16:30 RNS Holding(s) in Company
05Dec19 09:00 RNS Directorate Change
04Dec19 16:30 RNS Director/PDMR Shareholding
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  • 22 Jan 20
Q4 ahead of expectations, boosting cash and dividend

The FY update highlights a stronger Q4 than expected, with a rebound in US sales after a weak H1 and initial SkyScreed sales. This results in an uplift in revenue, profit, and cash guidance for the year, thereby also boosting the underlying and supplemental dividend. This results in an eye-catching current year yield of 7.3% and undemanding P/E of 9.4x. We maintain our 380p price target, which offers good upside potential.

Companies: Somero Enterprises
  • 20 Jan 20
The Industrial Revelation

US factory output rises in Dec better than expected, Schlumberger sees continued weakness in North America, Fastenal saw a continued slowdown in Q4

Companies: HEAD HILS HTG JHD RNO SCPA TRI ZTF SOM

  • 23 Jan 20
Another good performance despite the macro backdrop

Since listing in Aug 2017, Strix has consistently highlighted the resilience of its business through its ability to hit forecasts despite the uncertainty of trade wars, Brexit and slower consumer confidence. Today’s pre-close states it will again meet consensus profit expectations which is in the range of ZC’s estimates of £31.1m operating profit and £29.7m PBT. The controls business maintained its leading market share globally and in all regions with the market growing at a solid c. 4.5%. The Water division had a slower year growing at 6% but, as expected, performance improved in H2. Net debt of £26.3m is better than forecast due to a combination lower capex and better working capital. The shares have not participated in the Q4 rally partly because of the strong performance during the year (c. 38%). However, the valuation still looks compelling at 12.5x current year forecasts for a such a resilient business. The yield of 4.1% remains attractive with the company confirming it will increase the FY19 dividend by 10% to 7.7p

Companies: Strix Group
  • 22 Jan 20
Somero Enterprises

FY19 trading update – significant upgrades to 2019 from better than-expected H2

Companies: Somero Enterprises
  • 23 Jan 20
The Industrial Revelation

UK industrial trends improves in Jan, South Korean GDP rises at fastest pace since Q3 17, Japan's exports miss but chip-making bounces in Dec

Companies: HEAD HTG JHD OXIG RSW GHH

  • 21 Jan 20
The Industrial Revelation

Taiwan exports rise for first time since 2018, IMF cuts global growth forecasts, Boeing in talks to borrow $10bn

Companies: OXIG RSW RNO TWD ZTF GHH

  • 24 Jan 20
RBG Holdings

Trading Update Inline – Signs of life in the market

Companies: Rosenblatt Group
  • 23 Jan 20
In-line trading update

Avingtrans has issued a trading update confirming that the group has continued to perform well in H1 FY2020E and is trading in-line with market expectations. The order and prospect pipeline are noted as being robust and the recent acquisitions of both Booth Industries and Energy Steel are integrating well and recovering from the distressed positions that they were in at the time of their purchase in June 2019. We make no changes to our estimates ahead of the interim results which will be published on 26th February.

Companies: Avingtrans
  • 23 Jan 20
Solid FY19 update, still attractively valued

Strix FY 19 trading update: ahead of FY 19 results due on 18th March, Strix has issued a very reassuring year-end update. ‘Strix has delivered a solid performance during 2019 despite continuing global volatility driven by Brexit and USA China trade tensions…and expect to report profit after tax in line with market expectations.’

Companies: Strix Group
  • 24 Jan 20
The Industrial Revelation

Japan manufacturing PMI rises, US construction confidence jumped in Nov, Union Pacific Q4 carload volumes misses expectations

Companies: HILS OXIG RSW RNO SCPA TRI ZTF SOM GHH

  • 08 Jan 20
Excellent Q4’19 and record orderbook

The birth of a new decade spawns an abundance of investment opportunities, not least due to the seismic shift towards ‘Industry 4.0’ (see below). Indeed, despite lacklustre global manufacturing PMIs, this migration towards smart-technologies, improved product quality, lower cost and e-commerce is triggering one of the biggest upgrade cycles in the history of supply chain management, data analysis and system integration.

Companies: Mpac
  • 08 Jan 20
UK Housebuilding Sector: 2020 vision: Sharpness and clarity for industry prospects

For fighter pilots, it is a minimum requirement. But having 20/20 ‘visual acuity’ (correct term) does not necessarily mean you have perfect vision (as convention assumes); instead, it indicates sharpness and clarity of vision at a distance. It is measured by a Snellen Chart, which displays letters of progressively smaller size and whereby 20/20 means that the test subject sees the same line of letters at 20 feet that a person with normal vision sees at 20 feet (or 6 metres; but 6/6 simply didn’t catch on).

Companies: ABBY BDEV BWY BKG VTY CRN CSP CRST GLE GLV INL MCS PSN RDW SPR TW/ WJG

  • 23 Jan 20
LIBERUM: PayPoint* - Q3 guides to PBT progress but our low EPS reduced by 0.9%

Q3 statement guides to PBT progress but slight weakness in Bill Payments due to weather and Parcels due to volumes. We nudge down our low FY 2020 FD EPS by 0.9% from 64.6p to 64.1p but maintain our net debt estimate of £15.4m.

Companies: Paypoint
  • 20 Jan 20
WHI Morning Comment: Henry Boot (BOOT) - Outperform (Buy)

Year end update: strategy continues to deliver, pipeline strong BOOT's year end update this morning reflects positive trading during 2019, with the very sizeable (£333m) Aberdeen project to the fore, resulting in a generally encouraging year, albeit very slightly short against original expectations – effectively as a result of divestments. The company is a leader in land development across the UK, and its model remains as relevant as ever. Hence the positive performance in particular from Hallam Land, which succeeded in delivering significant site volumes. The company's development division, Henry Boot Developments (HBD), traded well despite last year's inevitable uncertainties. Construction and BOOT's rental business also performed well, and the acquisition of Starfish Commercial in Q3 (balance acquired in December) reflected BOOT's commitment to the affordable housing market. With some rental income foregone following retail divestments, our forecasts are marginally shaved; however bearing in mind the lengthy pipeline, we continue to see meaningful longer term opportunities for the group, retaining our 365p price target. Cash at c.£30m is well ahead of expectations.

Companies: Henry Boot
  • 22 Jan 20
Resilient Q4 supports FY 2019 outlook

Leading brick and masonry products manufacturer Forterra has confirmed it expects to deliver underlying PBT in the FY to December 2019E in line with expectations, after a resilient performance in Q4 against continued political and economic uncertainty in the UK. It now expects the challenging market conditions experienced in H2 2019 to “gradually improve” but anticipates that performance in H1 2020E will be below the level achieved in H1 2019. We have taken a conservative stance to our FY 2020E estimates, but believe the fundamentals remain strong, supported by housing and infrastructure.

Companies: Forterra