Pre-Close Trading Update

Brickability Group PLC

26 April 2023

 

26 April 2023

Brickability Group plc  

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

Pre-Close Trading Update

Continued robust performance, record Adjusted EBITDA of >£50m and strong acquisition pipeline

Brickability Group plc (AIM: BRCK), the leading construction materials distributor, is pleased to provide the following update on trading for the year ended 31 March 2023.

As set out in the Company's Trading Update of 13 February 2023, the Group commenced the second half of the financial year with each of Brickability's business divisions delivering strong performance and the Group is now pleased to confirm that despite the macro-economic environment remaining uncertain, the Group's performance in the final quarter of the year has remained resilient.

As a result, the Group announces that it now expects to report revenues for the full year ended 31 March 2023 of approximately £681 million, a 30.9% increase year on year (FY22: £520 million) and an increase of 4.0% on a like-for-like ("LFL") basis, and Adjusted EBITDA¹ of not less than £50 million, ahead of current market expectations².

In line with expectations and as previously noted, performance of the Group's timber business normalised during the year following what was an exceptional high in the prior period. The Group's revenue growth on a LFL basis across all other categories outside of timber was 15.3% when compared to the previous year.

Net debt³ as at the year end is expected to be approximately £8 million, driven by the increase in expected EBITDA, a reduced working capital outflow and a trimming of capital expenditure.

Whilst remaining conscious of the challenges in some of our segments in the short-term, the Group believes that the underlying long-term demand for UK housing remains robust as does the demand for quality materials for the construction sector generally.

The Board remains confident that the Group is well placed to continue delivering on its strategic objectives and the underlying organic growth of the business.

In addition, the Group's acquisition pipeline remains strong with the Company assessing a number of potential opportunities in line with Brickability's stated strategy to provide geographic and product expansion.

The Group will notify the date of publication of its full year results for the twelve months ended 31 March 2023 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.    Current consensus analyst forecasts are FY23 Adjusted EBITDA of £47.1 million (with a range of £47.0 million to £47.2 million).

3.    Net debt is defined as cash less bank borrowings

-ENDS-

This announcement contains inside information.

Enquiries:

Brickability Group plc  John Richards, Chairman  Alan Simpson, CEO  Mike Gant, CFO	via Montfort Communications
Cenkos Securities plc (Nominated adviser and broker)  Ben Jeynes, Max Gould (Corporate Finance)  Julian Morse, Alex Pollen (Sales)	[phone]
Montfort Communications (Financial PR)  James Olley  Georgia Colkin	[phone] [e-mail]

About Brickability

Brickability is a leading construction materials distributor, serving customers across the UK and Europe for over 37 years through its national and local networks. The Group supplies over 550m bricks annually and has over 55 locations across the country with over 700 employees.

 

END