BRCK (Brickability) receives bid approach at 65p a share, closed at 41p, SQC looks for 80p

Mark Watson-Mitchell - 31.03.2026

This morning BRCK Group (LON:BRCK) announced that it has received an unsolicited, non-binding approach from Atlas Holdings LLC to acquire the entire issued share capital of BRCK.

Atlas initially proposed an indicative offer price of 65p per share in cash, which the BRCK board unanimously rejected on 23rd March, as it fundamentally undervalued the company.

BRCK has agreed to provide limited further information to Atlas to explore a potential improved offer, with any detailed due diligence contingent on a recommendable proposal.

Atlas is required to announce a firm intention to make an offer or withdraw by Tuesday, 28th April.

SQC Research now looks for a cash bid of 80p a share.

The Business

Formerly called the Brickability Group, BRCK is a leading distributor and provider of specialist products and services to the UK construction industry.

The business comprises four divisions: Bricks and Building Materials, Importing, Distribution and Contracting.

With an agile, de-centralised, capital-light business model, supported by a strong balance sheet, BRCK leverages the skills of its people company-wide to effectively service the complex and evolving needs of the construction industry.

Founded in 1985, the Group has grown organically through product diversification and geographic expansion, as well as through the acquisition of specialist businesses that support its long-term strategy for growth.

Today, the Group encompasses a diverse portfolio of market-leading brands and a dedicated team of over 800 skilled and experienced personnel, led by a management team with deep-rooted knowledge and experience in the UK and European construction industries.

The Group is committed to building better communities throughout the supply chain and supporting the delivery of sustainable developments that enhance the built environment for future generations, while delivering continuous value for shareholders.

The Equity

There are some 321.4m shares in issue.

The larger holders include Liontrust Investment Partners (9.78%), Otus Capital Management (4.72%), Hanover Investors Management (3.57%), Canaccord Genuity Wealth (3.06%), Quilter Cheviot (2.24%), Amati Global Investors (2.14%), River Global Investors (1.86), IQ EQ Fund Management (1.43%), John Richards (1.29%), and James Brearley & Sons (1.27%).

Broker's View

At the end of November last year analyst Edward Stacey, at Cavendish Capital Markets, stated that:

"Structural growth drivers for Brickability going forward include cladding remediation activity within Contracting, the company’s exposure to brick imports, which we believe will make up an increasing portion of UK brick demand, and the company’s exposure to renewable energy.

We also believe that the company is well positioned to benefit from an underlying demand recovery in UK construction when it becomes established.

Our 100p price target represents a FY27E P/E ratio of 10.4x, which we believe is a conservative multiple for a company with a robust balance sheet and strong earnings growth potential."

Stacey's estimates for the year to end-March are for sales to rise to £652.0m (£637.1m) with adjusted pre-tax profits of £39.5m (£37.8m) and earnings of 8.6p (8.5p) per share.

For the year starting tomorrow the brokers look for £701.0m sales, £43.8m profits, with 9.6p per share of earnings.

My View

Hold very tight to your shares would be my opinion, simply because this approach undervalues the company and its potential.

The Board has rejected the approach but is opening certain of its books to Atlas, which suggests that further value may be discovered by a bidder.

The Cavendish 100p Target Price indicates perceived value, however I bet that a bid at around the 80p level would be a lot more appealing.

(Profile 16.04.20 @ 39p set a Target Price of 55p*)

(Profile 25.04.25 @ 64p set a Target Price of 78p)

mark@sqcresearch.com