Brickability Share Discussion Threads

[tole] 03/8/2021 14:39

https://citywire.co.uk/funds-insider/news/the-bargain-stocks-value-managers-have-been-buying/a1537988?Backing the property boomThe housebuilding sector has been a big winner of the pandemic as working from home and the government's stamp-duty freeze sparked an unprecedented residential property boom.David Clark, manager of the £14.1m Saracen UK Alpha fund, bought into the recent capital raise by building merchants Brickability (BRCK) to finance the acquisition of timber supplier Taylor Maxwell.He described the move as a 'transformational deal and in a sector that favours a favourable political backdrop and robust supply and demand dynamics'.

[cordwainer] 02/8/2021 10:20

Perhaps as much as 7p eps could be on the cards in 3 days time, giving a p/e of around 15.
But even if it turns out to be 5.5 to 6p due to prior acquisition and integration costs, I expect all eyes will be on the post-period statements regarding Taylor Maxwell mainly. We know it represents a big boost in revenue for next year and earnings accretive, but we don't know the margins of that business lately, other than there's some history of good earnings..
"The Taylor Maxwell Group Head Office has always been located in Bristol and our turnover now exceeds £200m. In 2017 we were placed at number 37 in the 19th annual Sunday Times Profit Track 100 and more recently we were placed at number 107 in the 15th annual Sunday Times Grant Thornton Top Track 250."
Anyone fancy trying some guestimates going beyond FY2021 ? edit - see davebowler's post 138

[alter ego] 02/8/2021 06:11

another earnings accretive acquisition

[alter ego] 29/7/2021 14:49

I'm still waiting for the email to confirm my registration, so haven't been able to read the piece yet. share price has been steadily moving north this last week so may be more to go.

[cordwainer] 29/7/2021 11:11

Good read across from strong H1 results at Forterra, with Progressive Equity Research raising estimates..


(free registration req'd for full research note).

[bertiebingo] 22/7/2021 19:02

Very similar to me and agree re acquisition

[cordwainer] 22/7/2021 12:20

Then:
Bought 24 Dec 2020 @ 58p, Sold 12 Apr 2021 @ 85p (yes I missed the spring peak!)
Now:
Bought back in 19 Jul 2021 @ 89p.
Seeing better value again following strategic acquisition, plus hoping building activity in general continues to pick up.

[davebowler] 20/7/2021 11:04

Brickability Group plc (AIM: BRCK), the leading construction materials distributor, will be announcing Final Results on Thursday 5 August 2021. Alan Simpson, CEO, Mike Gant CFO and John Richard, Chairman will be available for a GROUP ZOOM call on the following dates/ times;



Friday 6 August

1pm GROUP ZOOM



Monday 9 August

11am GROUP ZOOM



Please respond to this email if you would to join either of the group meetings.

If you would like a 1-to-1 please also respond and I will revert subject to availability.



Given the proximity to the fundraise in May, management are relaxed if a catch up is not required on this occasion.



Best as always,
Rosie



​

Rosie‑May Crowe

Head of Investor Relations, Growth Companies

Tel:

020 7397 1925

Email:

[e-mail]

Web:

www.cenkos.com

[alter ego] 02/6/2021 11:29

thx for that davebowler. We have to wait until the end of this month for the deal to be approved I think.

[davebowler] 02/6/2021 11:03

Cenkos;
Brickability’s management has cast amorous eyes at Taylor Maxwell since pre-IPO days believing it to be union that makes huge strategic sense. It bolsters its leading position in UK brick distribution, offers cost and revenue synergies and is transformational in terms of the group’s scale and relevance in the wider materials supply industry, without imposing any real risks on the group either operationally or, as the deal is being structured, financially. For shareholders the acquisition of Taylor Maxwell could hardly be a more mouth watering prospect; bought at an underlying historic exit EV/Sales of c0.25x (max) and EV/EBITDA of 5.4x (max) it instantly ‘adds value’ versus its existing ratios and enhances pro-forma EPS by around 25% before allowing for any medium-term benefits that can be secured through procurement gains, revenue synergies or structural improvements to the financial performance of Taylor Maxwell’s timber business. Moreover, the substantially equity based acquisition cost (in total £50m plus a max £13m cash earn-out) leaves the balance sheet with zero pro-forma leverage allowing management to remain in acquisition/build mode whilst enhancing Brickability’s cash generation and dividend paying prospects. On accretion from Taylor Maxwell the shares would be trading on a conservatively estimated FY22 (March) PE of 13.4x and EV/EBITDA of 9.2x which returns the stock to a lower range sector valuation with further growth of 10% in EBITDA and c15% in EPS potentially to follow in FY23E. Our ‘Fair Value’ price model post acquisition would put a value of c125p on the shares against base assumptions.

[alter ego] 02/6/2021 06:47

Sizeable (earnings accretive) acquisition announced and placings to raise funds. Interesting to see how share price reacts given placing discounted at 95p

[tole] 23/4/2021 12:02

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-rbg-holdings-brickability-discoverie-and-more/Brickability Group (LON:BRCK) – brick by brick it is building upThis construction materials group issued its pre-close trading update yesterday for the year to end-March.Revenues are seen at £180m (£187.1m) and pre-tax profits at £15m (£15.7m), earnings being estimated at 5.3p (5.5p) per share.For the current year Kevin Cammack at the company's broker Cenkos Securities reckons that £212m sales and £17.8m of profits, giving 6.2p of earnings, is possible. The house rates the shares as a 'buy'.They closed up 4% on the day at around 90p. Hold tight.

[davebowler] 20/4/2021 07:49

Cenkos;

Recovery and outperformance have been hallmarks of the building materials and merchants sector since lockdown ended and whilst Brickability may not have been in the vanguard of this re-appraisal by investors it has certainly made up for it over recent months doubling in value since last November and rising over 20% in the past month to a new high. There will probably be few surprises that it is moving FY21 (to March) guidance up for a second time, nor that management is expecting to deliver growth in FY22 but we believe price upside exists from here based on the possibility of future upgrades driven by either continuing market trends, organic growth initiatives or acquisition accretion, of course coupled to its strong cash flow characteristics. A current year (conservative) rating of 14x PER, 10x EV/EBITDA and 2.5% yield remains undemanding in actual and sector relative terms.

[mfhmfh] 20/4/2021 06:42

'...expects to deliver revenues for the period of approximately £180 million and adjusted EBITDA in excess of £17 million, ahead of previous expectations.'

[texaspete2] 20/4/2021 06:17

16m in revenues ahead of market forecasts. 7m behind last year but with good outlook.

[2vdm] 15/4/2021 09:48

hxxps://youtu.be/g_Ew1xeOq-8

[2vdm] 15/4/2021 09:47

Interesting summary on Proactive Investor yesterday about BRCK. Brickability Group build on geographical expansion, acquisitions and product range expansion (proactiveinvestors.co.uk)

[mfhmfh] 09/4/2021 16:45

strong finish/good volume.

[death by donut] 01/4/2021 11:25

Breakout?DbD

[mfhmfh] 30/3/2021 09:51

good read across from MBH today. IMHO.

[riskonricky] 23/3/2021 10:36

Yodelling intensifies but any news?

[cordwainer] 09/2/2021 19:45

Shut the front door - or should I say sell the front door - great update.
My post-Brexit worries mentioned earlier have been very bluntly shot down.