Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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April 26, 2024

BRCK | News – Private housebuilder plots expansion | Fortnight ahead

Company news

Brickability Group (BRCK, 68p, £217m mkt cap)

Construction materials distributor. FY (Mar) trading update. Guidance: “Trading in Q4 was delivered in line with management expectations, and continued to reflect the lower levels of demand in bricks and associated building products experienced in the first nine months of the year. FY EBITDA is expected to be at least £44.8m, in line with previous guidance, demonstrating operational resilience with margins consistent with the prior year performance”. Rev -13%, c. £594m(c. -18% LFL. “The group remains in a strong financial position, with leverage as at 31 March 2024 expected to be approximately 1.25x, following the acquisitions of Group Topek Holdings in October 2023 and TSL Assets in January 2024. Both acquisitions are performing as expected with integrations proceeding to plan, and are experiencing strong forward orders as part of the enlarged group”. Outlook: “Despite activity levels in the sector remaining subdued, the Board believes that with leading positions across a diverse portfolio offering, the group enters the new financial year well positioned to benefit materially from a recovery in its end markets”.

In other news …

Housebuilders. HarperCrewe, a challenger housebuilder led by former Bloor CEO Adrian Bloor, is targeting construction of 1,000 homes a year after receiving an investment boost, ConstructionEnquirer.com. The firm has confirmed a significant strategic investment from funders TPG Angelo Gordon and Ridgeback Group who have previously acquired nine UK build-to-rent assets worth £800m. HarperCrewe was founded by Adrian Bloor – former CEO of the largest privately-owned housebuilder in the UK, Bloor Homes – and has amassed an initial land portfolio of over 3,000 plots since inception in 2022.

Fortnight ahead

Capture

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