Brickability’s accretive strategy, which saw the building supplies merchant acquire brick distributor Taylor Maxwell in 2021, has demonstrated “favourable timing” according to equities analysts at Cenkos Securities.
In year-end results posted on July 21, the London-listed company exceeded EBITDA guidance of £38mln to round the year off at £39.5mln (a 56% year-on-year increase), while earning per share (EPS) hit the low double digits.
While net cash reserves are only £400,000, this still beat Cenkos’ negative cash flow expectations.
Cenkos cited “favourable inflationary trading conditions versus Covid-impacted comps and the transformational acquisition of Taylor Maxwell, although underlying organic growth
was seen in all divisions”.
Cenkos’ revised 2023 forecasts include a 13.4% revenue bump and an 8.8% increase in underlying earnings, while EPS has been upgraded 4% to 10.3p.
After hiking dividend-per-share (DPS) by 54% in 2022, Cenkos expects a further 6.6% increase in 2023.
All in all, Brickability is in a position to “modestly exceed market expectations” in the next financial year.
BRCK rallied 3.4% to 7,700p following the latest earnings.