BRCK Group – showing impressive resilience in a difficult market, next week’s results should identify its shares as undervalued at 48.50p

Mark Watson-Mitchell - 08.07.2026

Look out next week for the latest set of Final Results from the BRCK Group (LON:BRCK), formerly called Brickability, they are due to be announced on Tuesday, 14^th July.

Despite building sector hassles generally, this £157m-capitalised business has shown some good resilience in a difficult market.

With its shares trading at 48.50p, they rate out on a mere 5.6 times price-to-earnings ratio, while yielding a very healthy 7.2% dividend yield.

Broker estimates indicate good growth over the next couple of years, while tagging its shares with a 100p Target Price.

The Business

Based in Bracknell, Berkshire, the BRCK Group 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.

The group, which was set up in 1985, 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, it encompasses a diverse portfolio of market-leading brands and a dedicated team of over 800 skilled professionals, led by a management team with deep-rooted knowledge and experience in the UK and European construction industries.

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

BRCK Group is an innovative and rapidly developing organisation that brings together a range of businesses who all offer specialist products and services to the UK construction industry.

This group of market-leading businesses are distributors of bricks, blocks, cladding systems, roofing, radiators, tiles, doors and windows, as well as installers of superior quality materials from major UK and European manufacturing partners.

It 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.

Pre-Close Trading Update

On Thursday, 23^rd April, the group issued a Trading Update reporting revenues of around £645.0m for the year to end-March, showing a slight increase of 1.2% over the prior year, with adjusted EBITDA expected to be around £52.3m, up 4.4%.

The group stated that despite challenges in the housing market, adverse weather, and delays in Building Safety Regulation approvals impacting some projects, the company's diversification strategy has provided resilience.

The company successfully renewed its £110m banking facilities in December 2025, securing a £60m Revolving Credit Facility and a £50m Term Loan for three years, with leverage projected at 1.15x and net debt at approximately £60.5m as of 31 March 2026.

The group’s Board expressed its confidence in future growth driven by structural demand across its end markets.

Management Comment

CEO Frank Hanna, who is shortly stepping down, stated that:

"I am pleased that BRCK Group has again delivered a robust performance, with revenue growth and adjusted EBITDA expected to be ahead of the prior year, despite the continued sector challenges and geopolitical uncertainty.

Our strategic focus on strengthening the BRCK Group platform is further improving our operational capabilities, resilience and governance.

While external factors have presented headwinds, our strong financial position and our diversified offering mean we are exceptionally well-placed to capture significant value from the enduring structural demand across our end markets."

The Equity

There are some 323.27m shares in issue.

The larger holders include Octopus Investments Nominees (16.98%), Liontrust Asset Management        (9.78%), Alan Jonathan Simpson (7.23%), Dexter Copeland (5.30%), Paul Michael Hamilton (5.00%), Otus Capital Management (4.72%), Hanover Investors Management (3.57%), and Arnold Bernard Geradus van Huet (dec'd) (3.14%).

Broker’s Views

Analyst Edward Stacey, at Cavendish Capital Markets, rates the group’s shares as a Buy, with a Target Price of 100p.

Following the recent completion of the acquisition of the HS Jackson & Son (Fencing) business, Stacey commented that:

“We believe that BRCK has demonstrated excellent resilience against a difficult backdrop and remains well positioned for earnings recovery, with the acquired capabilities adding to that position.”

For the end-March 2026 year, he estimates revenues of £652.0m (£637.1m), with adjusted pre-tax profits of £39.5m (£37.8m), raising earnings fractionally to 8.6p (8.5p), while paying out a maintained 3.5p dividend per share.

The current year, he estimates, could see £674.0m revenues, £38.1m profits, 8.6p of earnings and a slightly increased dividend of 3.6p per share.

Getting on to a better keel in the end-March 2028 year, Stacey goes for £720.0m sales, £41.5m profits, generating 9.1p of earnings and a 3.7p dividend.

My View

It almost doesn’t matter if group profits ease slightly this year, the next year will resume the growth path.

The shares at 48.50p are very inexpensively rated, on only 5.6 times earnings and on a strong 7.2% yield.

I see them easily hitting the 60p level again shortly.

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

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

(Profile 08.07.26 @ 48.50p set a Target Price of 60p)

Is it still up on a predator's Buy List?