Trading Update

RNS Number : 0032V

Brickability Group PLC

04 August 2020

 

Brickability Group PLC

("Brickability" or "the Company")

BRICKABILITY GROUP PLC TRADING UPDATE

Brickability Group plc ("Brickability" or "the Company" or "the Group"), the leading construction materials distributor, is pleased to provide the following update on trading for the three months ended 30 June 2020.

Overview

The COVID-19 pandemic has created and continues to create unique challenges for all businesses, but Brickability adapted rapidly to the new operating environment. We promptly put in place measures to safeguard our employees and ensure business continuity.

During April and May the majority of the Group's employees were placed on furlough. With a relaxation of restrictions in the construction industry June saw increasing levels of market activity and return to work of some of our staff.

Since June we have continued to see an increase in activity and the return to work of the majority of our employees. The Group now has all its sites open and operating. In each of our sites rigorous protocols have been established for employees and visitors to ensure the safest possible environment.

Trading

Revenues for the 3 months ended 30^th June 2020 were £23.8m and encouragingly, June revenues returned to 83% of June 2019 and this trend has continued throughout July.  While April's reduced trading levels resulted in a loss in that month the Group returned to profit in May and produced a pleasing EBITDA* of £1.6m in June. 

The Group's liquidity continues to be strong with a net debt of £1m as at 30^th June 2020.  Cash balance as at 30^th June 2020 was £24m with £25m revolving credit facility drawn.  In addition, the Group has an unutilised overdraft of £5m and an accordion of a further £5m available.

*Unaudited

Outlook

While it is still too early to predict the level and sustainability of market recovery the Group remains confident in the underlying demand for UK housing. Recent government initiatives along with the SDLT "holiday" have further reinforced that confidence.

The Group can also confirm that its acquisition strategy remains on track and that it is currently evaluating a number of value-creating opportunities.

The Group looks forward to updating the market in late August with audited results for the full year ended 31^st March 2020.

The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

Enquiries: Brickability Group PLC John Richards, Chairman Alan Simpson, Chief Executive Officer
Stuart Overend, Chief Financial Officer c/o Montfort Communications
Cenkos Securities (Nomad and Broker) Max Hartley / Max Gould (Corporate Finance)	0207 397 8900
Julian Morse (Sales)
Montfort Communications (Financial PR)	0203 770 7916
James Olley, [e-mail] Woolf Thomson Jones, [e-mail]

 

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