REG - Brickability Group - Pre-Close Trading Update

BrickabilityAnnouncement

26/04/2023 07:00

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RNS Number : 4525X  Brickability Group PLC  26 April 2023

26 April 2023

Brickability Group plc

 

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

 

Pre-Close Trading Update

 

Continued robust performance, record Adjusted EBITDA of >£50m and strong
acquisition pipeline

 

Brickability Group plc (AIM: BRCK), the leading construction materials
distributor, is pleased to provide the following update on trading for the
year ended 31 March 2023.

As set out in the Company's Trading Update of 13 February 2023, the Group
commenced the second half of the financial year with each of Brickability's
business divisions delivering strong performance and the Group is now pleased
to confirm that despite the macro-economic environment remaining uncertain,
the Group's performance in the final quarter of the year has remained
resilient.

As a result, the Group announces that it now expects to report revenues for
the full year ended 31 March 2023 of approximately £681 million, a 30.9%
increase year on year (FY22: £520 million) and an increase of 4.0% on a
like-for-like ("LFL") basis, and Adjusted EBITDA(1) of not less than £50
million, ahead of current market expectations(2).

In line with expectations and as previously noted, performance of the Group's
timber business normalised during the year following what was an exceptional
high in the prior period. The Group's revenue growth on a LFL basis across all
other categories outside of timber was 15.3% when compared to the previous
year.

Net debt(3) as at the year end is expected to be approximately £8 million,
driven by the increase in expected EBITDA, a reduced working capital outflow
and a trimming of capital expenditure.

Whilst remaining conscious of the challenges in some of our segments in the
short-term, the Group believes that the underlying long-term demand for UK
housing remains robust as does the demand for quality materials for the
construction sector generally.

The Board remains confident that the Group is well placed to continue
delivering on its strategic objectives and the underlying organic growth of
the business.

In addition, the Group's acquisition pipeline remains strong with the Company
assessing a number of potential opportunities in line with Brickability's
stated strategy to provide geographic and product expansion.

The Group will notify the date of publication of its full year results for the
twelve months ended 31 March 2023 in due course.

 

1.    Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, share option expense, acquisition costs and
exceptional items.

2.    Current consensus analyst forecasts are FY23 Adjusted EBITDA of £47.1
million (with a range of £47.0 million to £47.2 million).

3.    Net debt is defined as cash less bank borrowings

 

-ENDS-

This announcement contains inside information.

Enquiries:

 

 Brickability Group plc                                    via Montfort Communications

 John Richards, Chairman

 Alan Simpson, CEO

 Mike Gant, CFO

  
 Cenkos Securities plc (Nominated adviser and broker)      +44 (0) 207 397 8900

 Ben Jeynes, Max Gould (Corporate Finance)

 Julian Morse, Alex Pollen (Sales)

  
 Montfort Communications (Financial PR)                     +44 (0) 203 514 0897

 James Olley                                               brickability@montfort.london

 Georgia Colkin

 

About Brickability

Brickability is a leading construction materials distributor, serving
customers across the UK and Europe for over 37 years through its national and
local networks. The Group supplies over 550m bricks annually and has over 55
locations across the country with over 700 employees.

 

 

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