Brickability Announces 57% Revenue Increase in Past Six Months

BRICKABILITY GROUP PLC, the construction materials distributor, has announced a 57.8% increase in revenue in the six months ending on 30 September 2022 to £352.7m (H1 FY22: £223.5m).

Brickability Group’s strong performance was reported across all its Group divisions in the first half of its 2023 financial year, despite the macroeconomic and geopolitical backdrop, with a continuing strong order book moving into the second half of the financial year.

According to the report, the company’s unaudited interim results for the first half of its financial year April-September 2022 (H1) included a Group like-for-like (adjusted for acquisitions) revenue growth of 9.3%. Two acquisitions in the period – of Modular Clay Products in May 2022 and ET Clay Products in September 2022, have contributed to the increased revenues.

Revenue Increase

In H1 FY22, gross profit increased by 40.8% to £54.9m, compared to £39.0min the first half of Brickability’s financial year, while profit before tax increased by 71.9% to £15.3m (H1 FY22: £8.9m).

John Richards, Chairman, said: “The first half of the year has seen the Group benefit from the earlier strategic decision to move into new market segments within the construction and housebuilding industries thereby diversifying and expanding both the Group’s product portfolio and end markets. This, combined with the increase in import and distribution capacity, has significantly increased the Group’s customer base which has in turn led to sales and profit growth across all four divisions.

“Whilst the market continues to be impacted by macroeconomic and geopolitical pressures, the fundamentals of our industry remain strong, albeit the impact of the current UK economic environment on our business during 2023 is unclear. However, having built a robust and increasingly diverse business, we remain confident in the Group’s ability to continue to deliver on its strategy and to meet market expectations for the full year.”

Adjusted EBITDA (defined as earnings before interest, tax, depreciation and amortisation, share option expense, acquisition costs and exceptional items) increased by 45.7% to £25.5m, compared to £17.5m in the first half of the financial year.

Net debt was £27.4m at 30 September 2022 and an interim dividend of 1.01 pence per share is being offered.

The Brickability Board says it remains vigilant of wider macroeconomic challenges but is confident in the Group’s ability to deliver performance in line with market expectations for the full year of adjusted EBITDA of approximately £44.5 million.

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