BRCK Group plc (LON:BRCK) has delivered a resilient set of FY26 results, according to the latest research note from Cavendish, with the business continuing to perform well despite a difficult backdrop for UK construction markets.
Revenue rose 1.3% to £645.4m, adjusted EBITDA increased 4.4% to £51.0m and basic adjusted EPS improved 8.0% to 8.91p. The note says these figures were broadly in line with expectations, while earnings came in slightly ahead of forecast. Cavendish also kept its Buy rating and 100p target price unchanged, pointing to further upside if market conditions improve.
The report is upbeat on BRCK’s ability to navigate weak demand in UK new build and repair, maintenance and improvement markets. It says the company’s diversified model, together with a strong focus on profitability, has helped support performance through the cycle. Period-end net debt of £60.5m was also in line with forecast.
The note highlights that FY26 is the first year BRCK has reported under its new divisional structure, which separates the business into Distribution and Design & Install. This clearer structure is intended to reflect the different growth drivers and margin profiles across the group.
FY26 highlights
- Revenue increased 1.3% to £645.4m, despite continued weakness in UK construction demand.
- Adjusted EBITDA rose 4.4% to £51.0m, helped by a positive mix effect.
- Basic adjusted EPS increased 8.0% to 8.91p.
- Design & Install was the strongest growing division, up 8.8% year on year.
- Distribution remained resilient, with revenue broadly flat at £519.0m.
- Jackson Fencing was acquired after the period end, adding a premium brand and new growth channels.
Within the divisions, Distribution held up well in a tough market, with revenue broadly flat as weakness in housebuilding and RMI activity offset gains in products such as radiators, roof tiles and imported bricks. The note says the division’s performance reflects cost discipline, specialist positioning and strong supplier relationships.
Design & Install delivered the strongest growth, supported by fire safety remediation and roofing activity, as well as geographic expansion. Cavendish notes that this division has structurally higher margins than Distribution and is increasingly exposed to regulatory, safety and technical specification trends that can support growth regardless of the housing cycle.
One of the most interesting developments in the note is the acquisition of Jackson Fencing after the period end. The business adds a recognised brand in fencing and perimeter security, and opens up opportunities in infrastructure and government-backed markets such as data centres, military bases, energy, prisons, railways, highways, ports and airports. The report sees this as a strong strategic fit that broadens BRCK’s reach beyond traditional construction demand.
The research also keeps a constructive eye on the medium term. Forecasts are unchanged for FY27E and FY28E, with only gradual improvement assumed in the near term and a more meaningful recovery expected to build 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.
Valuation remains a key part of the investment case. The shares trade on a FY27E P/E of 5.9x and offer a dividend yield of 7.4%, which the note compares favourably with a wider peer group trading on 12.2x P/E and a 3.8% dividend yield. The report argues that BRCK’s valuation leaves room for both structural and cyclical earnings upside.
Overall, the latest research note presents BRCK as a business that has shown resilience in difficult conditions, maintained its dividend and continued to invest for growth. With diversification, a stronger divisional structure and the Jackson Fencing acquisition all adding to the story, the note suggests the group is well placed to benefit when construction markets eventually recover.
