Brickability Share Discussion Threads

[alter ego] 28/7/2022 14:44

Sphere25, your rationale is good. BRCK management seem to me to be in control and shrewd but this market is unforgiving and lacks buyers. Many are sitting on their hands waiting to see what happens. I don't see the bottom being close, there are too many issues yet to be dealt with in the wider economy but supplying materials to builders and contractors is not a bad place to be if cost increases can be passed on or mitigated.

I hold, in my ISA, am in profit but think BRCK are worth more. Happy to wait meanwhile.

[sphere25] 28/7/2022 12:50

The interesting thing is that, despite all the issues that have dogged the market (and indeed many still loom large like a dark cloud), both IBST and FORT have recovered their yearly losses.

Clearly that doesn't mean we should all start jumping for joy and doing star jumps, but it does make you wonder whether the market is sending some form of signal about this sector and whether the likes of BRCK might follow suit.

If you're trading ahead in this environment, are on a low multiple, don't have the type of indebted balance sheet that causes so many negative issues, pay a dividend, have some director buying, look to be reasonably bullish on the future and see sector price recoveries....I guess that's about as bullish as you can be right now and watch for a possible breakout.

The market must be watching 80p as the mark to watch for a breakout. The 50 day moving average is sat just above that mark at 81p. Barring a little blip earlier in the year, the price hasn't taken control of that mark to send a more bullish signal. Clearly not everyone follows technicals but they are a peculiar phenomenon in driving market participants behaviour too.

Observations from recent trades in the market:

- There is a decent sized buyer (Octopus perhaps?) accumulating in the market
- Notable blocks of 168k and 124k picked up @ 78p and then a couple of 100k blocks along with other trades picked up at 79p yesterday along with some small chunks picked up today over 79p.
- No whoppers yet but interested to see further prints and how the battle between bulls and bears unfolds


All in all, maybe one to keep an eye on. It has clearly been treacherous out there with all these negative events converging to form a formidable storm. The shorters must have enjoyed this period just much as the longs did on the spectacular bull party post vaccine.

But if you're trying to grow your ISA (raises hand)...err yeah....probably about as tough as it has been for a long time. Hard to go on the attack because you're up against a heavyweight boxer who keeps clobbering you in the face or trying to stand in front of a rampaging steam liner.

Suffice to say, I sit those out rather than getting clobbered. Interestingly, there are a few bullish signs out there. Some companies are warning and the reactions are alot less pronounced or they are getting bought up (a few - just a few for now), but more of that type of price action will surely signal being close to a bottom.

No idea if the bottom is in on the wider market though.

Horrible times - yuk!

All imo
DYOR

[riskonricky] 28/7/2022 07:53

And forterra today... Brck still looks better to me but wtfdik

[cwa1] 27/7/2022 07:59

IBST results look strong on a quick glance...

[cwa1] 25/7/2022 07:48

Hefty director share purchase...

[2magpies] 21/7/2022 10:13

Yes, very good update.

Just can't see them remaining independent for very long, and could be snapped-up by a biggy, imo.

[binghall] 21/7/2022 09:23

Unless there is a cataclysmic downturn coming, then there are a number of quality companies trading well under value. This is certainly one of them and I'm happy to hold.

[2vdm] 21/7/2022 07:46

Excellent update and the share price doesn't reflect the value here. Well done to the BOD

[death by donut] 29/6/2022 16:25

Don't understand the supply thing myself. Certainly was the case beginning of last year , but now , not enough labour to use the materials tbh.Every site I work on is flying at the mo , that may change in coming mths but might be more to do with consumer spending than material supply.Cld be totally wrong of course.DbD :-) - Builder bloke.

[riskonricky] 29/6/2022 09:10

https://www.proactiveinvestors.co.uk/companies/news/986059/brickbats-keep-on-coming-for-the-construction-industry-986059.html

[death by donut] 27/6/2022 14:41

Probably went large on a Maccy D n fries.DbD

[riskonricky] 20/6/2022 15:17

Why does someone need to sell 2 pounds worth of shares so urgently?

[2vdm] 01/6/2022 08:23

Yes, despite a lot of nervousness out there, BRCK seems to be moving forward.

[alter ego] 01/6/2022 07:42

another promising bolt on acquisition:

"Brickability Group plc (AIM: BRCK), the leading construction materials distributor, is pleased to announce the acquisition of Modular Clay Products Limited ("MCP") for a consideration of £4.75 million.
The acquisition will be funded from the Group's existing resources and is expected to be immediately earnings accretive post completion."

[riskonricky] 11/5/2022 07:25

'A holy trinity of value, growth and financial quality'... Yep.www.proactiveinvestors.co.uk/companies/news/981886

[tole] 22/4/2022 17:01

https://masterinvestor.co.uk/equities/bricks-and-windows-are-going-cheap-brickability-and-safestyle/Brickability Group (LON:BRCK) – I foresee a 50% share price uplift as further expansion shows throughI really like the way this group has been built up to date and I now expect it to expand a great deal further in the next couple of years.Yesterday's Pre-Close Trading Update clearly stated that its results for the year to end March 2022 will come in higher than market hopes.It is now expecting to report group sales of some £520m and showing an EBITDA of over £38m.The £301m capitalised group, which is a leading construction materials distributor, supplies bricks, timber, roofing, cladding, heating, doors, flooring and windows.Operating from some 41 locations across the UK and Europe, it continues to satisfy ongoing demand from contractors and housebuilders.Despite external pressures the group predicts an underlying long-term demand for higher quality materials from the UK housing and construction sector.Following the Update, analyst Kevin Cammack, at the group's brokers Cenkos Securities, now has estimates out for the 2022 year of nearly trebled revenues at £520.0m (£181.1m) and a more than doubled rise in adjusted pre-tax profits of £34.1m (£15.0m).That should generate 9.6p (5.6p) of earnings and very amply covering a 2.1p (2.0p) dividend per share.For the current year Cammack goes for £573m sales, £36.9m profits, 9.9p earnings and a 2.3p dividend per share.Understandably he rates the group's shares as a 'buy' looking for a 136p 'fair value' per share.Its entrepreneurial management is confident that it will be able to continue with its strategic growth, with several potential acquisitions under active consideration.I am more bullish than Cammack. I see the group's 'buy-to-build' strategy proceeding at a pace between now and the end of next year, with earnings enhancing deals to the fore.The group's shares peaked at 114p last September, however I feel that, taking into account its growth prospects, they are significantly undervalued at the current 101p.I suggest that 150p should be the right market price to reflect this company's potential, a much better equity value that would be right for such an acquisition vehicle.

[2vdm] 21/4/2022 07:35

Excellent trading update:-

"As set out in the Company's Trading Update of 18 January 2022, the Group commenced the second half of the financial year with each of Brickability's business divisions delivering strong performance and with the Group then expecting that demand for the Group's diverse multi business product offering would continue to build throughout the remainder of the year.

The Group is now pleased to confirm that due to ongoing positive momentum, this strong delivery has continued, with a very strong fourth quarter of the full financial year having been achieved.

As a result, the Group announces that it now expects to report revenues for the full year ended 31 March 2022 of approximately GBP520 million and adjusted EBITDA* of not less than GBP38 million, ahead of current market expectations.

Whilst remaining conscious of potential inflationary impacts, near term macro-economic conditions and the prevailing global geo-political backdrop, the Group believes that the underlying long term demand for UK housing remains robust as does the demand for quality materials for the construction sector generally. The Board remains confident that the Group is well placed to continue delivering on its strategic objectives and the underlying organic growth of the business."


"In addition, the acquisition pipeline remains strong with the Group assessing a number of potential opportunities in line with the Group's stated strategy to provide geographic and product expansion.".

This company's BOD is confident and seems to know exactly what it's doing going forward.

[riskonricky] 09/4/2022 07:35

Thanks Sphere. Not sure macros apply too much here though. Solid well run business. Management second to none. Reckon the latest raise gives them the critical mass needed to self fund new acquisitions while building organic growth. Should be an exciting time for both the business and staff. If there are no further raises, shares will have to be found on the market. I think this is why octopus are loading up now - before earnings really start to ratchet and the train leaves the station. Downside risk could be a new acquisition letting them down in a big way. I think both parties understand this though and it is reflected in the purchase price. It's also worked into the incentive plans for new bolt-ons. Looking forward to seeing the full year results and wishing them the all the best.

[sphere25] 05/4/2022 15:00

Interesting battle going on here at 93p with major bulls and bears taking each other on. We are currently seeing exchanges approach 9 million, which is notable for BRCK. Normally I jump on board with a stop for a quick go if I see the price moving on sellers clearing, but this one looks tricky and sometimes big volume can be a precursor to a big fall too.

It looks like it is Octopus accumulating (note recent RNS with them building a substantial stake) versus the rest of the market who are selling out. Clearly it is impossible to know how many are selling and buying, but the main player appears to be Octopus.

I think these trades are both sides of the exchanges so it might be another buyer too e.g.

2m print at 14:28 accompanied by 2 x 1m
1m print earlier at 10:53 accompanied by 2x500k
1.42m print earlier at 10:13 accompanied by blocks of 500k, 300k and 620k

Clearly the bulls think we have a growth scare and the market comes back with the likes of BRCK rallying back higher. The bears could be alot more concerned with a recession to follow and therefore a bigger fall in the price. The house builders aren't sending a great signal of course with the share price moves. Retail is suggesting consumer weakness too.

Overall though, there are so many factors at play out there which are going to feed into how high rates go and how the economy pans out. The range of outcomes makes it difficult to determine how it all plays out. Plenty to think about for folk.

Markets have bounced back well so they aren't suggesting anything substantial is going to happen with Russian energy to cause a monstrous spike in commodities that likely leads to a recession, but is that the right view?

BRCK were trading ahead and scheduled an update for the second half of this month.

Watching to see if the bulls or bears win this battle. If it looks like the sellers get exhausted with the bulls taking control for a move higher, can enter with a stop under 90p. Conversely, if the price looks weak with the sellers exhausting the buyers to cause another move down, I will leave it alone.

Who knows, we might be here for a short while as this battle plays out too!

There is no magic method here. The chart is precarious balanced testing the top of a short term downtrend.

Not all trades work but using a stop works!

All imo
DYOR

[davebowler] 31/3/2022 09:48

Cenkos;
With Brickability’s proven ability and opportunity to expand on all fronts, it is bolstering its supply and fit Roofing business with the acquisition of Beacon Roofing for a cash consideration of £6.5m (including £2m deferred over 3 years subject to performance). This Surrey-based roofing contractor fits neatly into the cluster of geographic legacy roofing division businesses and will be immediately earnings enhancing. The division has been the slowest to bounce-back from COVID-19 impact but recovery from acute materials shortages (and high price inflation) is progressively being restored and this acquisition is certainly in accordance with the strategy to grow higher margin businesses at low operational risk. The shares, down 6.5% YTD and 15% from their 12-month ‘high’, sell on an estimated March-23 EV/EBITDA of 7.2x, a PER of 9.8x and with an ungeared balance sheet. We believe that Brickability is being undervalued by the market given the group’s trading and cash flow resilience and its ability to still grow apace in less favourable industry conditions as seems likely in the medium-term. We remain firm Buyers.

[alter ego] 31/3/2022 07:57

Another bolt on acquisition



"For the 12 months to 31 January 2022, Beacon reported unaudited revenue of £8.9 million and normalised EBITDA of approximately £1.1 million.

The acquisition will be funded from the Group's existing resources and is expected to be immediately earnings accretive post completion."

[2vdm] 11/3/2022 08:00

Excellent RNS and bodes well for the future. Topping up here again.

[2vdm] 26/1/2022 07:44

Agree with you Riskon. Going to top up here.

[riskonricky] 25/1/2022 18:58

Ex div. 27th, 0.96p - amazed to see some sellers at p 10x e - but that's fine by me. Top management here. Clearly a cut above the rest.

[riskonricky] 18/1/2022 09:24

I wondered how long it would take people to work out that was H1 earnings, not full year. Ah well.