Brickability Reports Improving Outlook Amid Solar Boost

ANNOUNCING a 2% increase in revenue for the half year, Brickability Group plc, construction materials and products distributor, issues its latest trading update ending 30 September 2024.

Sales were £330 million, representing a 7% drop in like-for-like revenue adjusted to discount the impact of recent acquisitions.

Recent acquisitions have included several businesses in the roofing and cladding sectors. These include acquiring Hampshire-based Topek Southern Ltd at the beginning of the year, as well as Beacon Roofing and ET Clay Products in 2022.

Revenue and volumes in the Bricks and Building Materials, and Importing divisions were lower than last year, suffering from the house building slump.

Solar Boost

Sales of solar PV gave the company’s sales sheet a boost, meaning its distribution division returned to growth driven by a doubling of sales by its renewables business UPOWA.

Brickability says, “The Group is benefiting from an increasingly diversified product and service offering, with the recently acquired specialist cladding and fire remediation contracting businesses delivering a strong first half. As a result of the timing of projects, the performance of the contracting division is expected to be first half weighted.”

Although the new build housing, residential and commercial RMI markets remain supressed for Brickability, it nevertheless has a positive outlook.

Brick orders are gaining momentum, the Group says, which is contributing to a “well-balanced” forward order book for the second half of the year. It adds an increase in inquiries in recent weeks indicate improving sentiment for a recovery in the next six months.

Net debt at 30 September 2024 is expected to be around £56m, after making deferred and contingent acquisition payments of £8m. The Board expects adjusted EBITDA for the six-month period of at least £27.5m.

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