Brickability Group Announces Full Year Results

BRICKABILITY Group PLC, the construction materials distributor, has announced its preliminary results for the year ending 31 March 2022.

In the 12-month period revenue increased by 187.2% to £520.2m with group like-for-like sales growth (adjusted for the impact of acquisitions) of 31.9% more than 2021 and 40.5% on 2020.

In the same period, gross profit increased by 128.4% to £86.8m giving a gross profit margin of 16.7% – down from 202’s margin of 21.0%, with the anticipated lower margins reflecting integration of the Taylor Maxwell acquisition, the company says.

Brickability Group says its strong performance reflects the company’s strategic position in the industry, despite a challenging sector environment. It reports that recent acquisitions of Taylor Maxwell in June 2021, Leadcraft in August 2021, HBS NE in November 2021 and Beacon Roofing in March 2022 are now integrated and performing in line with or above initial management expectations. Modular Clay Products was also acquired in May 2022.

Plans for Further Expansion

There are plans for further expansion of the Bricks and Building Materials division, with property purchased to facilitate new branch openings within the U Plastics business, as well as the growth of HBS NE. Paul Hamilton was appointed as the new Chief Operating Officer in November 2021.

John Richards, Chairman, said: “FY2022 has been a transformational year as we focused on strategically developing the Group both organically and acquisitively. The year saw the Group move into new segments within the market, increase our import and distribution capacity, expand our customer and client base and build upon our existing product portfolio, all of which has enabled us to capitalise and respond to the strong demand across our sectors and achieve our key operational and financial objectives.

“This has been another successful year for the Group and yet again the results achieved are thanks to the Group’s adaptability, diversity, strength and ability to work together to meet demands, manage pressures and seize opportunities. We remain positive with regards to the market outlook and the Board is confident in the Group’s ability to continue delivering on its strategy.”

Whilst mindful of the broader macroeconomic uncertainties the Brickability board believes that its diversified multi business strategy places the business in a strong position. It says there is an ongoing review and progression of acquisition opportunities.

It reports that trading in the first quarter of FY2023 has been “very encouraging” and, as a result of the contribution from the Group’s acquisitions, the Group is well positioned to “modestly exceed market expectations for the current financial year”.

Other financial highlights include:

• Adjusted EBITDA⁽²⁾ increased by 125.7% to £39.5m (2021: £17.5m)
• Adjusted Profit before tax⁽³⁾ increased by 131.3% to £34.7m (2021: £15.0m)
• Statutory Profit before tax increased by 64.3% to £18.4m (2021: £11.2m)
• EPS increased by 4.9% to 4.40p (2021: 4.19p)
• Adjusted EPS increased by 80.9% to 10.06p (2021: 5.56p)
• Net cash as at 31 March £0.4m (2021: net debt £7.3m)
• Borrowing facility increased to £60 million plus £25m accordion following re-financing
• Final dividend proposed of 2.04 pence per share giving a total dividend for the year of 3.00p, an increase of 53.6% (2021: 1.9528p)

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