Brickability Group Regulatory News (BRCK)

26 April 2024

Brickability Group plc  

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

Pre-Close Trading Update

Full year performance in line with expectations

Brickability Group plc (AIM: BRCK), the leading construction materials distributor, provides a trading update for its financial year ended 31 March 2024.

Trading in Q4 was delivered in line with management expectations, and continued to reflect the lower levels of demand in Bricks and associated building products experienced in the first nine months of the year. Group revenue for the full year is expected to be approximately £594 million, a decrease of c.13% over the prior year (FY23: £681 million) or c.18% lower on a like-for-like ("LFL") basis.

Full year adjusted EBITDA1 is expected to be at least £44.8 million, in line with previous guidance, demonstrating operational resilience with margins consistent with the prior year performance.

The Group remains in a strong financial position, with leverage2 as at 31 March 2024 expected to be approximately 1.25x, following the acquisitions of Group Topek Holdings Limited in October 2023 and TSL Assets Limited in January 2024. Both acquisitions are performing as expected with integrations proceeding to plan, and are experiencing strong forward orders as part of the enlarged Group.

Despite activity levels in the sector remaining subdued, the Board believes that with leading positions across a diverse portfolio offering, the Group enters the new financial year well positioned to benefit materially from a recovery in its end markets. 

The Group will notify the date of publication of its full year results for the twelve months ended 31 March 2024 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. Leverage is defined as net debt (pre-IFRS) divided by adjusted EBITDA

-ENDS-

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