REG - Brickability Group - Half Year Trading Update

BrickabilityAnnouncement

22/10/2024 07:00

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RNS Number : 0042J  Brickability Group PLC  22 October 2024

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-like(1) 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 EBITDA(2) 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 -

 

 Enquiries:

 Brickability Group PLC                        via Montfort Communications
 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

 Charlotte Sutcliffe

 Tom Graham

 Montfort Communications                       +44 (0) 203 514 0897

 James Olley                                   brickability@montfort.london

 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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