22 October 2024
Brickability Group
plc
("Brickability" or the
"Group")
Half Year
Trading Update
Brickability Group plc (AIM: BRCK),
a leading distributor and provider of specialist products and
services to the UK construction industry, issues the following
trading update for the six-month period ended 30 September
2024.
The Group's financial performance in
the first half of the year was in line with the Board's
expectations, with revenues in excess of £330 million, an increase
of 2 per cent. on the prior year period, and 7 per cent. lower on a
like-for-like1
basis.
Trading during September reflected a
continuation of the trends across the Group as noted in the recent
AGM statement. Revenue and volumes in the Bricks and Building
Materials, and Importing divisions were lower than the prior year,
consistent with the wider commentary around new build housing,
whilst Distribution has returned to growth, driven by a doubling of
sales of solar PV in Upowa.
The Group is benefiting from an
increasingly diversified product and service offering, with the
recently acquired specialist cladding and fire remediation
contracting businesses delivering a strong first half. As a
result of the timing of projects, the performance of the
contracting division is expected to be first half
weighted.
The new build housing, residential
and commercial RMI markets remain supressed, although the Group
sees positive momentum, particularly in brick order intakes, which
is contributing to a well-balanced forward order book for the
second half of the year. An increase in inquiries for the Group's
products in recent weeks indicate, alongside other leading
indicators, improving sentiment around a recovery commencing in the
current financial year.
Net debt as at 30 September 2024 is
expected to be approximately £56 million on a pre-IFRS basis, after
making deferred and contingent consideration acquisition payments
of in excess of £8 million.
The Board anticipates reporting
adjusted EBITDA2 for the six-month period of at least £27.5 million, (HY 2024:
£25.6m) and its expectations for the full year remain
unchanged.
1 like-for-like revenue
is a measure of performance, adjusted for the impact of
acquisitions.
2 Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortisation, share option expense, acquisition costs and
exceptional items.
- Ends -
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Enquiries:
Brickability Group PLC
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via Montfort
Communications
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John Richards, Chairman
Frank Hanna, Chief Executive
Officer
Mike Gant, Chief Financial
Officer
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Peel Hunt LLP (Nominated Adviser and Broker)
Ed Allsopp
Charlotte Sutcliffe
Tom Graham
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+44 (0) 20 7418 8900
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Montfort Communications
James Olley
Alex Everett
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+44 (0) 203 514 0897
brickability@montfort.london
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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.
