Brickability Share Discussion Threads

[alter ego] 18/1/2022 09:20

"Following the release of the interims results for the six months ended 30 September 2021, the Group has continued to deliver a strong performance across all of its business divisions. As a result, the Brickability Board is pleased to announce that it now expects to report an adjusted EBITDA * of a least £32 million for the full year to 31 March 2022, ahead of current market expectations."

trading update released this morning

[km18] 03/12/2021 13:42

Brickability is an emerging and highly innovative supplier of building materials, with a strong record of delivering ceramic, and paving products, radiators, bricks, and roofing services to both private and commercial specifiers, developers, builders and contractors within budget and schedule. The effectiveness of its operations was reflected on the firm’s financial prospects since profit before tax surged by 120.4% to £11.9m from £5.4m in 2020. Subsequently, the firm has outlined a concise acquisition strategy to expand its renewable energy product offering to develop a strong order book which forced up the firm’s net cash position to £18.4m from £13.8m in 2020. Furthermore, the plausible long-term construction projects are expected to yield higher returns on investment, as illustrated from the EPS growth of 39.2%, which is above the building industry benchmark. Consequently, it implies that the security is undervalued, cheap and is expected to surge in value, since the PE ratio of 12.7 is below the market PE ratio of 14.7.

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[riskonricky] 02/12/2021 07:00

No thank you. Steady growth in earnings and a share price that keeps its feet on the ground please.

[webbski1949] 02/12/2021 02:59

Needs a bit of a push and comment from the share mags.
Anybody know when it goes xd?

[babbler] 01/12/2021 09:02

Stupid reaction. Clearly under radar.

[investing2retire] 01/12/2021 08:15

looking good. the only way is up

[2vdm] 01/12/2021 07:54

Great set of interims. and looking good for the second half too.

[alter ego] 29/11/2021 15:34

Octopus busy accumulating again. now hold over 10% of stock.

[alter ego] 25/11/2021 08:53

Very positive trading updates this morning from MBH and FORT (both brick manufacturers) are evidence of strong demand.

[alter ego] 24/11/2021 10:53

Given BRCK's relationships with large scale builders, this acquisition looks smart and should extend the market for HBS offerings as pointed out above.

[davebowler] 24/11/2021 10:19

Cenkos-
BRICKABILITY (BRCK; 102p; BUY): Like Taylor Maxwell before it, management’s patience and persistence has landed another prized target, this one HBS NE Limited trading as HBS New Energies and UPOWA, giving Brickability a platform into the fast-growing renewables energy products market. It is Brickability’s 13th acquisition in the past 3 years, will cost a maximum £5.5m and falls within the group’s target 4x-6x EV/EBITA purchase range thus enhancing earnings whilst broadening the product offering to its core housebuilder customer base and, of course, helping with the group’s own sustainability agenda. We remain Buyers against a pre-HBS model ‘fair value’ of 128p.



HBS is a market-leading renewable energy expert specialising in design, supply, installation and maintenance of solar PV, battery storage/invertors and electric vehicle charging technology with customers across housebuilding, commercial and industrial and the public sector geared to simplifying sustainable construction of zero-carbon homes and buildings. It sells through the product brand UPOWA as a single source for products and services that are compliant with Part L, Part S and the Future Homes Standard. Since its formation in 2008, UPOWA has been specified on over 15,000 individual properties nationwide and currently works with 16 of the Top 25 UK developers including Barratts, Taylor Wimpey and Vistry. Brickability’s extensive and deep relationships with housebuilders primarily through its brick factoring will undoubtedly open doors for revenue synergies as has been the case with roofing and towel radiators for example.

[tole] 26/10/2021 21:40

https://masterinvestor.co.uk/equities/brickability-group-looking-for-a-further-15-price-uplift/

[2vdm] 26/10/2021 06:58

Octopus Investments increasing its stake to 8%. Bodes well.

[riskonricky] 22/10/2021 15:44

Smart money friday bulls running in

[tole] 15/10/2021 18:17

Brickability Group (LON:BRCK) – building up superbly, very well placed"The UK housebuilding sector remains in good health following a strong post pandemic recovery, driven by changing demographics, significant pent-up demand and assisted by government incentives. Brickability was initially well positioned to benefit from these structural tailwinds and remains in a position to continue profiting from these prevailing themes."Well, that comment from Brickability certainly sounded strong enough to me, to back the 'buy' advice of analyst Kevin Cammack at Cenkos Securities.For the year to end March 2022 he has a current estimate of sales of £391.3m (£181.1m), with pre-tax profits jumping from £15m to £25.5m, worth 7.3p in earnings per share, compared to 5.6p previously.This 'buy to build' group is now the UK's leading brick factor, distributing both domestic and imported product.It also distributes roofing products, towel rails, and radiators, as well as wholesaling and merchanting timber.The company's latest Trading Update, issued on Wednesday, went on to statethat"The number of homes being built domestically continues to rise with Q1 2021 recording the UK's highest number of homes built in a single quarter for over 20 years. This trend is reflected globally, contributing to globally inflated building materials prices in almost all sectors. Our order book remains extremely strong and as one of the UK's leading building materials distributors, Brickability is well placed to supply UK's housebuilders as demand is expected to continue to strengthen."The post pandemic recovery is well underway now, especially in the construction sector. It offers this group so much upside, furthermore despite higher material prices its products are still in strong demand.It has other acquisitions being lined up, so the group is expected to grow even larger.The shares, at the current 105p, have been a magnificent mover in the last eighteen and could easily double again in due course.

[cordwainer] 13/10/2021 23:22

John Richards interview 13 Oct 2021 12:21

[tole] 13/10/2021 19:24

https://www.fool.co.uk/investing/2021/10/13/2-of-the-best-value-penny-stocks-to-buy-right-now/2 of the best-value penny stocks to buy right now!#2: Building materialsThe Brickability Group (LSE: BRCK) share price recently fell below the £1 penny stock limit. Indeed, it's down around 5% over the past month as concerns over rocketing inflation have fed concerns that the Bank of England could raise rates.Increasing interest rates would certainly have an adverse impact on broader homes affordability, something that could filter through to affect construction rates. While the risks have risen I still believe that the brick manufacturer's profits outlook remains extremely attractive.Interest rates should remain ultra low compared to historical standards, after all. So I expect new homes demand to remain pretty robust. And support from government from first-time buyers remains in play of course.Don't forget that the government plans to create 300,000 new residential properties a year by the middle of the decade. And it's taking steps to reduce red tape to make this a reality. So I expect Brickability to deliver excellent shareholder profits in the coming years.

[alter ego] 13/10/2021 14:01

just released

"The following amendment has been made to the "Trading Update" announcement released on 13 October 2021 under RNS number 8673O which, whilst correctly stating that Group H1 2021 revenue is expected to be of c.£223m, incorrectly stated that this level of revenue was a c.300% increase compared to H1 2020. Expected H1 2021 revenues of c.£223m are an increase of c.200% compared to H1 2020."

[riskonricky] 13/10/2021 07:10

Not too shabby - fantastic management. Well done.https://www.londonstockexchange.com/news-article/BRCK/trading-updateqqq/15171170

[cordwainer] 12/10/2021 11:10

Interims only about a month away.

[cordwainer] 06/10/2021 14:23

The Guardian reporting at 13:13 today..

UK construction hit by labour shortages and supply chain crisis
UK building firms were hit by widespread supply shortages last month, which drove up cost inflation and hit growth.

The latest survey of the construction sector found that shortages of materials and staff hold back the construction recovery in September.

Growth hit an eight-month low, as builders reported softer demand, unavailable transport, a severe lack of materials and continued staff shortages. It was also harder to find sub-contractors, who hiked their prices at the fastest rate on record.

Some firms said the unpredictable pricing environment had slowed clients’ decision-making on new orders and led to delays with contract awards.

This dragged the IHS Markit/CIPS UK Construction PMI down to 52.6 in September, from 55.2 in August. That only shows a moderate expansion, and the weakest in eight months.

IHS Markit PMI™
(@IHSMarkitPMI)
🇬🇧 UK construction output rose at a far weaker pace in September as the #PMI fell to 52.6 (Aug: 55.2). Labour, material and transport shortages held back the sector's recovery and led to a rapid increase in costs. Read more: [...] pic.twitter.com/X4Xyfvcmp2

October 6, 2021
Purchase prices increased rapidly in September, although the rate of inflation eased further from June’s all-time peak.

Around 78% of the survey panel reported a rise in their cost burdens, which was mostly linked to supply shortages and transport surcharges.

Staffing levels rose, but at the weakest rate since April, which partly reflected long wait times to fill vacancies.

UK construction PMI
UK construction PMI Photograph: IHS Markit
Tim Moore, Director at IHS Markit, says labour shortages and the supply chain crisis led to a severe loss of momentum:

“The volatile price and supply environment has started to hinder new business intakes as construction companies revised cost projections and some clients delayed decisions on contract awards. As a result, the latest survey data pointed to the worst month for order books since January’s lockdown.

Shortages of building materials and a lack of transport capacity led to another rapid increase in purchase prices during September. There was also a considerable decline in the availability of sub-contractors, with survey respondents citing shortages of bricklayers, drivers, groundworkers, joiners, plumbers and many other skilled trades.

Measured overall, prices charged by sub-contractors increased at the fastest rate since the survey began in April 1997.

[bertiebingo] 06/9/2021 20:23

Depends on buying and selling contracts regarding volume & price commitments but like all companies steady inflation is good for them over time. Higher inflation may not be an issue if the contracts are short dated.

[riskonricky] 06/9/2021 18:48

Wonder how Brick are coping with this inflation.https://www.independent.co.uk/news/business/news/uk-economy-recovery-supply-problems-construction-b1913302.html

[alter ego] 05/8/2021 08:10

Creditable results announced today given impact of Covid on building trades. Looking good for the year ahead.

[davebowler] 05/8/2021 08:04

Cenkos;
Looking back on FY21 investors can be consoled that a COVID-19 impacted year has at least provided an underpinning of the attractiveness and resilience of Brickability’s business model, notably in terms of margin, cash and dividends. Of course, it is the forward view that counts and with the transformational Taylor Maxwell deal now under its belt, a de-leveraged balance sheet, a good pipeline of acquisition prospects, and end-markets which are extremely robust (even the industry and internal challenges are of the ‘nice to have’ variety), Brickability is in a great position to deliver growth. The bonus for investors is that the rating does not, in our view, reflect these prospects. Against what we regard as conservative estimates with no ‘stretch’; benefits for TM included or any further acquisition accretion, the shares trade on a FY23 EV/EBITDA of 8x, a PE of c11x, a 4x covered 2.2% yield and FCF yield of over 8%. On our ‘Fair value’ price model – and noting the above upside comments - the shares would be more appropriately valued at around 128p. Buy.