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.

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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.