REG - Brickability Group - AGM Statement

BrickabilityAnnouncement

11/09/2024 07:00

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RNS Number : 6602D  Brickability Group PLC  11 September 2024

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.

- Ends -

 

 Enquiries:

                                               via Montfort Communications

 Brickability Group PLC
 John Richards, Chairman

 Frank Hanna, Chief Executive Officer
 Mike Gant, Chief Financial Officer

 Peel Hunt LLP (Nominated Adviser and Broker)    +44 (0) 20 7418 8900

 Ed Allsopp

 Tom Graham

                                             +44 (0) 203 514 0897
 Montfort Communications

                                             brickability@montfort.london
 James Olley

 Alex Everett

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.

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