Interim Results for the Six Months Ended 30 September 2024
Brickability Group PLC (AIM: BRCK), leading distributor and provider of specialist products and services to the UK construction industry, today announces its unaudited interim results for the six months ended 30 September 2024 (“H1 FY25”).
H1 FY25 Financial Summary
| H1 FY25 | H1 FY24 | % Change | |
| £m | £m | ||
| Revenue | 330.9 | 324.8 | 1.9 |
| Adjusted results (1) (2) (3) | |||
| Gross profit | 63.0 | 55.0 | 14.5 |
| Gross profit margin | 19.0% | 16.9% | 210bps |
| Adjusted EBITDA | 27.9 | 25.6 | 9.0 |
| Adjusted EBITDA margin | 8.4% | 7.9% | 50bps |
| Adjusted profit before tax | 21.9 | 21.8 | 0.5 |
| Adjusted EPS | 5.03p | 5.30p | (5.1) |
| Net debt (4) | 56.3 | 30.9 | 82.2 |
| Interim dividend - declared | 1.12p | 1.07p | 4.7 |
| Statutory results (5) | |||
| Profit before tax | 7.0 | 16.0 | (56.3) |
| EPS | 1.33p | 3.78p | (64.8) |
Half Year Highlights
- Resilient, in line performance despite sustained macroeconomic conditions, with revenue growth of 1.9% or a like-for-like (LFL)(6) reduction of 7.4%
- Improvement in Adjusted EBITDA margin of 50 bps validating the benefits of the recent strategic and structurally higher margin acquisitions
- Strong revenue performance in the Contracting and Distribution divisions, driven by a doubling of sales of solar PV in Upowa, highlighting the benefit of the Group's diversification strategy
- FY24 full-service specialist cladding installation and remediation contracting acquisitions of Topek and TSL are performing well and trading in line with the pre-acquisition investment case
- Streamlined senior leadership team, focused on growth and operational outperformance
- Investment underway in IT systems upgrades and process efficiencies
- Increase in the interim dividend reflects the performance in the first half and the Board's confidence in the longer-term outlook for the Group
Outlook
- Trading for the first six weeks of the second half is in line with the Board's expectations
- New build housing market remains soft heading into the new calendar year
- Medium-term housing market fundamentals are strong, with a structural housing deficit and the new Government's commitment to 1.5 million new homes during this parliament
- Recent increased order intake is encouraging, particularly within the Bricks and Building Materials division
- Profitability is expected to be first half weighted due to phasing of project work in the Contracting division, and the Board is confident in achieving market expectations for the full year (7)
(1) Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and other items (See Financial Review and note 5).
(2) Adjusted profit before tax is statutory profit before tax excluding other items.
(3) Adjusted EPS is adjusted profit after tax (statutory profit after tax before other items) divided by the weighted average number of shares in the year.
(4) Bank borrowings, excluding arrangement fees, less cash.
(5) Statutory measures derived from accounting under IFRS.
(6) Like-for-like ("LFL") revenue is a measure of growth in sales, adjusted for the impact of acquisitions.
(7) The Company considers market expectations for FY25 to be revenue of £630m and Adjusted EBITDA of £47m.
This has been a positive half for the business, and I view the future with cautious optimism. Enquiry levels are picking up, the order intake is encouraging, and importantly, well represented across each of our four divisions. We remain confident in a recovery of the new build housing market, and Brickability is well positioned to significantly benefit when it happens.
Having now been in the business for six months I've been able to take a detailed look at the Group. My initial impressions remain intact, this is a great business with a strategy of diversification, providing high quality specialist products and services for our customers. The Group has significantly evolved from predominantly being a brick distributor, and is now a diversified group of scale with strong foundations. My focus has been on improving the fundamentals of the business, ensuring through cycle resilience whilst retaining the entrepreneurialism spirit at our core, and I look forward to the future with confidence in our ability to deliver excellent results when market growth returns.
Frank Hanna
Chief Executive Officer | Brickability Group PLC
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