REG - Brickability Group - Trading Update

BrickabilityAnnouncement

26/02/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250226:nRSZ4340Ya&default-theme=true

RNS Number : 4340Y  Brickability Group PLC  26 February 2025

26 February 2025

Brickability Group plc

("Brickability" or the "Group")

Trading Update

Strong organic growth across divisions and good momentum provides confidence
in full year outturn

Brickability Group plc (AIM: BRCK), a leading distributor and provider of
specialist products and services to the UK construction industry, provides an
update on trading for the 10 months ended 31 January 2025 (the "Period").

Trading update

Despite a challenging market backdrop, the Group's strategy of diversifying
its revenue streams has enabled the business to deliver a solid performance
during the Period.

In the four months ended 31 January 2025, Group revenue increased by
approximately 12.3% on a like-for-like basis compared with the same period in
the prior year, recording growth across all of the Group's four divisions.

The Bricks and Building Materials and Importing Divisions delivered strong
revenue growth compared with both the prior Period and the first half of the
current financial year, however pricing has become increasingly competitive as
a result of what has been softer demand in the wider market.

The Distribution Division continues to benefit from the trends described at
the half year, with solar PV products from the Group's renewables business,
Upowa, in high demand.  The regulatory focus on building safety continues to
provide a supportive backdrop for the Contracting Division, which is
benefiting from a multi-year pipeline and order book within its specialist
cladding and fire remediation businesses, contributing to divisional margins
significantly ahead of the Group's blended average.

Outlook

The Group's performance in the first 10 months of the financial year has been
resilient and is especially pleasing given the challenging demand environment
of its key end markets.

With the current trading momentum, and good visibility on the timing of orders
and projects through to the year end, the Board now anticipates delivering
adjusted EBITDA(1) modestly ahead of market expectations(2) for the year
ending 31 March 2025.

The evolution of the Group and its diversified revenue streams provides a
strong platform for growth, and the Group is well positioned to benefit
quickly when new housing volumes start to accelerate driven by the new
Government's agenda. Whilst the pace of this recovery is still uncertain, the
underlying long-term demand for UK housing remains robust.

Frank Hanna, Chief Executive Officer, said:

"I am pleased by the way in which Brickability is performing and it is
testament to our specialist, multi-channel Group structure and the  hard work
of the Group's teams across the four divisions that we are able to deliver
growth through a tough cycle. At the same time, we are investing in our IT
systems and the standardisation of processes to improve operating efficiencies
and data analytics to better serve our customers."

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

(2) Company compiled analyst consensus, prior to this announcement, is for
FY25 adjusted EBITDA of £47.0m.

 

 Enquiries:

 Brickability Group PLC

 John Richards, Chairman                        Via Burson Buchanan

 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

 Charlotte Sutcliffe

 Burson Buchanan                                +44 (0) 20 7466 5000

 Mark Court                                     brickability@buchanancomms.co.uk

 Stephanie Whitmore

 Abby Gilchrist

 

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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTPKPBDOBKDPBB