BRCK Group Plc (LON:BRCK) has delivered FY26 results that Cavendish describes as in-line, with the latest research note pointing to structural resilience, a diversified business model and further growth potential over the medium term.
The broker said the group achieved modest growth in revenue, adjusted EBITDA and earnings despite a difficult backdrop for UK construction markets. It maintained its Buy rating and 100p target price, arguing that the shares continue to offer attractive value alongside earnings upside as conditions improve.
In its note dated 14 July 2026, Cavendish said BRCK’s performance showed the benefits of diversification across its product and services businesses. The company also announced the post period-end acquisition of Jackson Fencing, which the broker views as a strong strategic fit and an additional route to growth, particularly in energy and infrastructure-related projects.
FY26 highlights
- Revenue rose 1.3% to £645.4m from £637.1m in FY25.
- Adjusted EBITDA increased 4.4% to £51.0m.
- Adjusted EPS improved 8.0% to 8.91p.
- Period-end net debt was £60.5m, in line with expectations.
- Design & Install was the strongest-performing division, with revenue up 8.8% year on year.
- Distribution remained resilient, with revenue broadly flat at £519.4m.
The note explains that BRCK is now reporting under a new two-division structure, comprising Distribution and Design & Install. Cavendish said this better reflects the strategic difference between the group’s traditional distribution activities and its higher-margin specification, remediation and installation businesses.
Within Distribution, the group saw broadly flat revenue despite subdued demand in UK new build and repair, maintenance and improvement markets. The broker said the division benefited from disciplined pricing, cost control and favourable product mix, helping margins remain resilient.
Design & Install was the standout area, supported by growth in fire safety remediation and roofing, as well as geographic expansion. Cavendish noted that progress in this division was achieved despite continued slowness from the Building Safety Regulator, although approval timelines have shown signs of improving recently.
The Jackson Fencing acquisition is another important part of the story. Cavendish said the business adds a premium fencing brand and perimeter security capability, while also opening up opportunities in non-cyclical markets such as data centres, military bases, energy, prisons, railways, highways, ports and airports. The broker believes this broadens BRCK’s diversification strategy and strengthens its long-term growth profile.
Looking ahead, Cavendish left its FY27E and FY28E revenue and earnings forecasts unchanged, while moving to post share-based payment adjusted earnings measures without changing the underlying numbers. The broker’s forecasts remain cautious, assuming no meaningful recovery in FY27E and only modest improvement in FY28E, before a more visible recovery begins to feed through in FY29E.
On that basis, Cavendish expects adjusted fully diluted EPS of 8.2p in FY27E, 8.7p in FY28E and 10.1p in FY29E. It also said net debt to EBITDA should remain at a prudent level, giving BRCK flexibility for further investment and growth.
In the note, Edward Stacey, Director of Research at Cavendish, said: “We believe BRCK is well positioned for strong earnings growth in the medium-term and we maintain our Buy rating and 100p target price.”
Cavendish also pointed to valuation support, saying the shares trade on a FY27E P/E of 5.9 times and a dividend yield of 7.4%, compared with a wider comparator group on 12.2 times earnings and a 3.8% dividend yield. The broker said this leaves BRCK looking attractively priced for investors seeking both resilience and cyclical upside.
Overall, the latest research note presents BRCK Group as a business that has continued to perform steadily through a weak market, while building a platform for future growth through diversification, disciplined execution and targeted acquisitions.
