Brixability revenues top £352m on strong demand but materials supplier braces for homebuilding slump
- Profit growth across all divisions, despite macroeconomic backdrop
- Gross profit rose 40.8% to £54.9m as adjusted EBITDA rose 45.7% to £25.5m
Driven by a strong order book in the second half, Brickability is expected to meet profit expectations for the year.
The building materials supplier, which is headquartered in Wales, told investors on Monday that revenue rose 57.8 percent to 352.7 million pounds and it expects to hit adjusted EBITDA of 44.5 million pounds for 2022.
Brickability enjoyed sales and profit growth across all of its divisions over the past six months due to strong demand in the low-supply construction and homebuilding sector.
Brickability reveals it expects to meet market expectations for the full year, driven by a strong order book in the second half
Gross profit increased by 40.8 percent to £54.9 million during the period, while adjusted EBITDA increased by 45.7 percent to £25.5 million.
In light of the buoyant results, the company has announced an interim dividend of 1.01p per share, up from 0.96p for the first half of the year, payable on 23 February 2023.
Brickability shares rose 0.2 per cent to 70.67p in early trade on Monday.
Looking ahead, the company says it remains positive, but cautioned that the impact of a challenging macroeconomic and geopolitical backdrop remains ‘unclear’ through 2023.
It was noted that volatility in the timber market as well as limited availability of certain products presented themselves as a challenge during 2022.
John Richards, chairman of Brickability, commented: ‘The group has benefited from an earlier strategic decision to move into new market segments within the construction and housebuilding industries in the first half of the year, diversifying both the group’s product portfolio and end markets and has expanded.
‘This, combined with increased import and distribution capacity, has led to a substantial increase in the group’s customer base resulting in increased sales and profits across all four divisions.
‘While the market is being impacted by macroeconomic and geopolitical pressures, the fundamentals of our industry remain strong, although the impact of the current UK economic environment on our business during 2023 is unclear.
‘However, having built a strong and increasingly diversified business, we remain confident in the Group’s ability to continue with our strategy and meet market expectations for the full year.’
Brickability is a leading building materials distributor, serving customers in the UK and Europe for over 37 years.
The group supplies over 550 million bricks annually and has over 55 locations across the country with over 600 employees.