BRCK Brickability Group Plc

11 September 2024

Brickability Group plc

("Brickability", the "Company" or the "Group")

AGM Statement

Brickability Group plc (AIM: BRCK), the leading construction materials distributor, announces that at the Company's Annual General Meeting ("AGM") due to be held today at 12:00 pm at the offices of the Company at Queensgate House, Cookham Road, Bracknell, Berkshire, RG12 1RB, John Richards, Chairman, will make the following statement. 

Trading in the current financial year ending 31 March 2025 has been resilient, with the Group performing in line with the Board's expectations throughout the first five months of the year.

Market conditions remain challenging as anticipated, with demand for both UK and imported bricks down year on year, driven through a sustained decline in UK housing builds. As a result, trading in the Bricks and Building Materials and Importing divisions reflect the lower brick related volumes.  The Distribution division continues to deliver a resilient performance, whilst the Contracting division is performing strongly, benefitting in particular from the contributions of the recently acquired specialist cladding and fire remediation contracting businesses.

The Board has made the decision not to issue a further loan to its German tile manufacturing joint venture, which will allow the Group to focus on other investment opportunities and capital allocation priorities which are expected to generate better returns for shareholders. As a result, and absent a further injection of third-party funding, the factory may cease operations in the coming weeks. There is an outstanding balance of approximately €6m owed to the Group from the joint venture, the recoverability of which is currently unknown.  Any impairment would be expected to be recognised as a non-cash one-off exceptional item in the interim results.

The Board's expectations for adjusted EBITDA for the current financial year remain unchanged.  With a diversified business model, and cautious optimism around a recovery across its core markets, there remains confidence in the Group's ability to deliver long-term shareholder value, with the business well positioned to benefit quickly as market volumes normalise.

The Board would like to take this opportunity to thank all Brickability colleagues for their continued hard work. As ever, their drive and entrepreneurial spirit provides Brickability with its adaptability, diversity, strength and ability.

The Group will provide a first half trading update towards the end of October 2024.

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About Brickability

Brickability Group PLC is a leading distributor and provider of specialist products and services to the UK construction industry. The business comprises four divisions: Bricks and Building Materials, Importing, Distribution and Contracting. With an agile, de-centralised, capital-light business model, supported by a strong balance sheet, Brickability leverages the skills of its people company-wide to effectively service the complex and evolving needs of the construction industry.

Founded in 1985, the Group has grown organically through product diversification and geographic expansion, as well as through the acquisition of specialist businesses that support its long-term strategy for growth. Today, the Group encompasses a diverse portfolio of market-leading brands and a dedicated team of over 800 skilled professionals, led by a management team with deep-rooted knowledge and experience in the UK and European construction industries.

The Group is committed to building better communities throughout the supply chain and supporting the delivery of sustainable developments that enhance the built environment for future generations, while delivering continuous value for shareholders.