| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 54.38 | 0 |
| Intrinsic value (DCF) | 27.59 | -49 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.31 | -99 |
Brickability Group Plc is a leading UK-based supplier of building products, serving the construction industry with a diversified portfolio across bricks, roofing, heating, plumbing, and joinery materials. Headquartered in Bracknell, the company operates through three key segments: Bricks and Building Materials, Roofing Services, and Heating, Plumbing & Joinery. Brickability caters to a broad clientele, including house builders, developers, contractors, and retail customers, positioning itself as a critical player in the UK construction supply chain. Since its incorporation in 2017, the company has expanded its product offerings to include facing bricks, ceramic paving, rain screen cladding, concrete roof tiles, and underfloor heating systems. With a market capitalization of approximately £220 million, Brickability plays a vital role in the industrial distribution sector, benefiting from steady demand in residential and commercial construction. Its vertically integrated model and strong supplier relationships enhance its competitive edge in the fragmented UK building materials market.
Brickability Group presents a moderate investment case with stable revenue streams from the UK construction sector. The company’s diversified product range and established customer base provide resilience against cyclical downturns, while its £594 million revenue and £15.4 million net income (FY 2024) reflect steady operational performance. However, investors should note the company’s high leverage (total debt of £90.6 million vs. cash reserves of £15.6 million) and exposure to UK macroeconomic risks, including housing market fluctuations. The dividend yield (~1.4% based on a 3p/share payout) is modest, and the beta of 0.906 suggests lower volatility relative to the market. While Brickability’s growth prospects are tied to UK construction activity, its competitive positioning and operational efficiency could appeal to long-term investors seeking industrial distribution exposure.
Brickability Group competes in the fragmented UK building materials distribution sector, where scale, supplier relationships, and logistical efficiency are critical. The company’s competitive advantage lies in its diversified product portfolio, which spans bricks, roofing, and HVAC components, reducing reliance on any single segment. Its vertically integrated operations allow for cost control and margin stability, though it faces pricing pressure from larger distributors like Travis Perkins and smaller regional players. Brickability’s focus on mid-tier builders and developers differentiates it from competitors targeting either large contractors or DIY retail. However, its lack of significant international exposure limits growth compared to global peers. The UK market’s reliance on housing construction also poses cyclical risks, though Brickability’s asset-light distribution model provides flexibility. Competitors with stronger balance sheets or digital procurement platforms may challenge its market share, but Brickability’s niche expertise in masonry and roofing services reinforces its positioning.