Brickability Group Share News (BRCK)

(Sharecast News) - Brickability Group reported a solid set of full-year results on Tuesday, with revenue and adjusted earnings rising in line with expectations, as recent acquisitions and a diversified portfolio helped offset a sharp drop in statutory profits.

For the year ended 31 March, group revenue rose 7.2% to £637.1m, while adjusted EBITDA increased 11.6% to £50.1m.

Adjusted profit before tax climbed 7.1% to £37.8m.

However, statutory profit before tax fell 45.3% to £11.7m, and basic earnings per share dropped 59.7% to 2.04p.

Adjusted basic earnings per share slipped slightly, down 0.8% to 8.59 pence.

Gross profit rose 15% to £121.7m, with margins improving to 19.1% from 17.8%.

The AIM-traded company highlighted strong contributions from its fire safety and cladding remediation businesses Topek and TSL, which completed their first full year within the group.

Net debt stood broadly flat at £56.6m.

The board proposed a final dividend of 2.39p per share, bringing the total dividend for the year to 3.51p, up 4.8% on the prior year.

"The group delivered a solid performance in the period, with recent acquisitions contributing to the group's diversification and resilience, enabling profit upgrades during the second half," said chief executive Frank Hannah.

"The new financial year has started well, with the group delivering year-on-year organic growth, and trading in line with management expectations."

Hannah added that the board was confident in delivering further progress in the financial year ahead.

"Our product mix and leading market positions ensure that Brickability is strongly positioned for the short, medium, and long term. In addition, we continue to evaluate potential earnings accretive acquisitions."

Trading so far in the current financial year was in line with management expectations, the company said.

A programme to enhance processes and IT systems was under way, and Brickability said it remained well-positioned to capitalise on any improvement in market conditions.

At 1137 BST, shares in Brickability Group were up 2.59% at 62.58p.

Reporting by Josh White for Sharecast.com.