Brickability Group Share Price (BRCK)

Https://www.londonstockexchange.com/news-article/BRCK/pre-close-trading-update/17561498

So the announcement was made just before 4pm and the share price started falling yesterday and continued this morning. Will the FCA invest possible insider trading???

Just because the SP is in the doldrums now, I really don’t see this being taken over for peanuts.

There’s no need for the company to be sold imo, and I think the major shareholders will be happy with a 6.25%-6.5% dividend yield for the time being with a sale in a couple of years (assuming that the construction industry recovers) at well over £1 (probably more like £1.20).

I think it will take an offer in excess of 90p, at the very least, for serious discussions to take place.

Even then, it would be a single digit p/e on next year’s forecast earnings of c.9.5p, but a fair deal, all things considered imv, due to opportunity cost.

All just my opinions, so do your own research

Agree, even at 70p that only values Brck at £225m. Based on revenues and EBITDA that looks low.

However, i think the company are saying to Atlas if they come back with a half decent offer then they will be inclined to open the books and allow for proper discussions regarding a price to commence.

65p is clearly not enough to start negotiations. 70p plus may get things moving.

It has been a surprise to see BRCK trade at sector low multiples despite arguably having the more resilient revenue streams. It is likely relevant that Atlas already own a large contracting business in the U.K. which will deal with cladding sub-contractors. I suspect there is a bigger play here for them in building an integrated platform in U.K. construction.

I agree that the Board will struggle to defend an offer above say 70p as this is where major director sells have happened. There is still 20% of so in the hands of those who are clearly looking for an exit. The shares were in the low 50s when Atlas first engaged so I suspect they would have been looking at between 70-80p before Iran kicked off.

I do think Octopus will sway things a fair bit here owning 18%. Who knows how they feel but they did take a big block last year at 70p with the sellers being current and previous management. The shares subsequently tanked so I doubt they were best pleased. Yes 70p would be a good price for Atlas but there is a lot of the share register who want the cash.