19th October 2022
Brickability Group plc
(“Brickability” or “the Group”)
Trading Update
Brickability Group plc, the leading construction materials distributor, today announces a trading update for the six-month period to 30 September 2022.
Group revenue for H1 2022 is expected to be approximately £353m, an increase of c.58% compared to H1 2021. Adjusting for the impact of acquisitions, H1 2022 Group revenue on a like-for-like basis represents an increase of c.10% compared to the prior year.
As a result, the Board currently anticipates reporting adjusted EBITDA* for the six months to 30 September 2022 of at least £25m, which compares to £18m in the prior corresponding period.
Performance for the first six months of the year has continued to be strong, with sales and profit growth across each of the Group’s four divisions, notwithstanding continued high energy costs and inflation. Growth in the Bricks and Building Materials division was achieved despite the normalisation of performance in our timber business following the exceptional highs of 2021.
The macro-economic conditions in the UK and the impact on the UK housebuilding market of rising interest rates brings new challenges however, the Group looks to the near future with cautious optimism as it continues to actively manage the headwinds.
Our order books remain in line with management expectations, and we believe that the Group’s diverse multi business product offering will continue to enable the Group to navigate the challenges ahead. The Board remains confident of delivering market expectations for the full year ending 31 March 2023 (“FY23”)**.
The Group will notify the expected date of publication of its unaudited interim results for the six months ended 30 September 2022 in due course.
Alan Simpson, Brickability’s CEO, said:
“The strong first half performance is testament to the Group’s diversity, strength and ability to meet changing demands, manage pressures and seize opportunities. We have an experienced management team, a diverse business model and a strong balance sheet; however, we remain vigilant of market pressures.”
*Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortisation, share option expense, acquisition costs and exceptional items.
**FY23 market expectations as at the date of this announcement of adjusted EBITDA of £44.5 million, following the recent ET Clay acquisition.
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