Brickability Group PLC Trading Update (8673O)
13 October 2021 - 5:00PM
UK Regulatory
TIDMBRCK
RNS Number : 8673O
Brickability Group PLC
13 October 2021
Brickability Group PLC
LEI: 213800SK28MWXB3K3P26
13 October 2021
Brickability Group plc
("Brickability" or the "Group")
Trading Update
Brickability Group plc, one of the UK's leading construction
materials distributors, today announces a trading update for the
six-month period to 30 September 2021.
The UK housebuilding sector remains in good health following a
strong post pandemic recovery, driven by changing demographics,
significant pent up demand and assisted by government incentives.
Brickability was initially well positioned to benefit from these
structural tailwinds and remains in a position to continue
profiting from these prevailing themes.
Group revenue for H1 2021 is expected to be c.GBP223m, an
increase of c.300% compared to H1 2020. Adjusting for the impact of
acquisitions, H1 2021 Group revenue on a like-for-like basis
represents an increase of c.54% compared to the prior year and an
increase of c.31% compared to H1 2019.
The Board currently anticipates reporting adjusted EBITDA* for
the six months to 30 September 2021 of at least GBP17m, which
compares to GBP8m in the prior corresponding period.
The integration of Taylor Maxwell, following completion of the
acquisition in July 2021, continues to progress well, with Taylor
Maxwell also benefitting from the aforementioned favourable market
conditions and, in addition, the Taylor Maxwell timber division has
delivered exceptional revenue and profitability since acquisition,
as material shortages drove unprecedented price increases. Timber
prices in recent weeks have since reduced from this peak but remain
higher than last year.
The number of homes being built domestically continues to rise
with Q1 2021 recording the UK's highest number of homes built in a
single quarter for over 20 years. This trend is reflected globally,
contributing to globally inflated building materials prices in
almost all sectors.
Our order book remains extremely strong and as one of the UK's
leading building materials distributors, Brickability is well
placed to supply UK's housebuilders as demand is expected to
continue to strengthen.
Outlook
Brickability expects the current healthy housebuilding market
conditions to prevail in both the near and medium term. The Group
remains cautiously optimistic about the second half whilst
recognising that market supply chains are under pressure due to a
shortage of HGV drivers, construction worker wage inflation and
increases in materials prices. Whilst not immune to supply issues,
the Group's McCann logistics business, acquired in December 2020,
has and continues to give Brickability an advantage in transporting
materials from Europe and the UK. Despite these pressures the Board
expects performance in line with market expectations for the full
year.
Brickability's acquisition pipeline remains strong, and while
the Group remains focused on the integration of the recent
acquisitions of Taylor Maxwell and Leadcraft, management have also
identified a number of near term potential acquisitions, including
broadening the Group's offering to include renewable energy
products.
The Group will notify the expected date of publication of its
unaudited interim results for the six months ended 30 September
2021 in due course.
John Richards, Chairman said:
"The UK housebuilding market has shown its resilience in recent
months as the UK builds new homes at one of the fastest rates since
the turn of the century. Brickability, as one of the UK's leading
materials distributors, is well positioned to benefit from the
growing demand for materials and has the supply and logistics
capabilities to meet the market's needs. We remain cautiously
optimistic for the future."
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, share option expense, acquisition
costs and exceptional items.
ENDS
This announcement contains inside information.
Enquiries:
Brickability Group plc via Montfort Communications
John Richards, Chairman
Alan Simpson, CEO
Mike Gant, CFO
Cenkos Securities plc (Nominated
adviser and broker)
Ben Jeynes, Max Gould (Corporate Finance)
Julian Morse, Alex Pollen (Sales) +44 (0) 207 397 8900
Montfort Communications (Financial +44 (0) 203 770 7909
PR) brickability@montfort.london
James Olley
Georgia Colkin
Miles McKechnie
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