Brickability Group Regulatory News (BRCK)

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 EBITDA1 modestly ahead of market expectations2 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.

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.