Brickability Group PLC
13 October 2021
Brickability Group plc
("Brickability" or the "Group")
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.£223m, 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 £17m, which compares to £8m 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.
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.
This announcement contains inside information.
Brickability Group plc
John Richards, Chairman
Alan Simpson, CEO
Mike Gant, CFO
via Montfort Communications
Cenkos Securities plc (Nominated adviser and broker)
Ben Jeynes, Max Gould (Corporate Finance)
Julian Morse, Alex Pollen (Sales)
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Montfort Communications (Financial PR)
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