Last checked at 26 Mar 2020 07:00
Brickability Group PLC
("Brickability" or "the Company")
Update re Trading and COVID-19
Brickability Group plc, a leading construction materials distributor, today provides the following update on trading to date and the impact of COVID-19.
Trading in the second half since 30 September 2019 has been in line with expectations and this gives the Board confidence that EBITDA for the full year to 31 March 2020 will be in line with expectations.
Inevitably, since the UK Government's announcement earlier this week to restrict the movement of people this has thrown up considerable challenges to our business and our priority must be the wellbeing of our employees, customers, and suppliers across the regions in which we operate. In light of this advice and actions regarding COVID-19, the Company has taken the decision to close our sites and has asked those staff who are able to work from home to continue to provide support to customers and suppliers throughout this period. We will continue to assess the situation as it unfolds, working with suppliers on a return to delivery schedules as soon as is both possible and responsible to do so.
Brickability is well positioned for this period of uncertainty and for when it passes. The Company has low levels of stock, a strong balance sheet and had cash on the balance sheet of £22m million as at 25 March 2020. Given the unknown extent of this uncertainty the Board will focus on conserving cash and has ceased all discretionary spend.
The Company refinanced earlier this year to HSBC, increasing the historic revolving credit facility of £20m with a new £35m facility (£30m revolving credit facility and a £5m accordion) of which £10m million remains undrawn and can be used to fund the business through this difficult time.
In light of the significantly changed circumstances and lack of visibility, we are unable to provide market guidance for March 2021. We will continue to assess this as there is greater clarity on the length and impact of the current crisis and will provide an update as and when appropriate.
The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
For further information:
Brickability Group PLC via
Max Hartley, Cenkos: 020 7397 8925
James Olley, Montfort: 07974 982302