Bridgend-based brick supplier Brickability Group PLC (LON: BRCK) has made a steady start to its listed life.
Shares stood at 68p a few hours after trading got underway compared with 65p in a £57mln placing ahead of the float.
Redrow and Berkeley Group are among the group’s customers, though regional housebuilders are also a ‘hugely important’ said chairman John Richards.
Chief executive Alan Simpson led a management buy-out of the business in 2016 and holds a 15.9% stake.
Private equity firm Promethean Investments, which backed the management buy-out, has 12.6% while new investors coming on board include
Brickability distributes just over 300 million bricks a year, which compares with national sales of 2.5bn.
Richards told Proactive that the plan is to carry on with a strategy of organic growth boosted by acquisitions.
“There are still areas in Great Britain where we would like to have extra brick distribution and the easiest way for us to do that is to buy small brick distributors in a market that is still fragmented to a degree.”
Housebuilding activity is still very strong , he adds.
Completions are at record levels and order books are strong.
“Outside of London, the market is flying and mid-size – family homes builders are as busy as they can be.”
At 68p, Brickability is valued at £157mln.