Brickability Group PLC (AIM:BRCK) had an ‘excellent’ first half, according to City broker Cenkos in the wake of a trading statement that revealed revenues were up 200% year-on-year for the building materials distribution specialist.
“[This] demonstrates again its management credentials to operate strongly in all industry scenarios and its ability to identify, execute and add value through acquisitions, the update serves as a reminder as to why we believe this is a good investment,” the broker said in a note to clients.
It pointed out that Brickability currently trades on an enterprise multiple of less than eight times and a price-to-earnings multiple of 11-times. A well-covered dividend, meanwhile, generates a yield of 2.3%, while the free-cash-flow yield is 8.5%. It reckons fair value is 126p a share (current price 104p).
Cenkos said it is keeping its forecasts unchanged.