Brickability’s revenue tops £352m on strong demand, but materials supplier braces for housing construction slowdown
- Profit growth in all divisions, despite the macroeconomic environment
- Gross profit up 40.8% to £54.9m as adjusted EBITDA rose 45.7% to £25.5m
Brickability expects to meet earnings expectations for the year, supported by a strong backlog through the second half.
The Welsh-headquartered building materials supplier told investors on Monday that revenue rose 57.8% to £352.7m and it expects to reach EBITDA adjusted by £44.5m for 2022.
Brickability has seen sales and profit growth across all of its divisions over the past six months driven by strong demand in the undersupplied construction and homebuilding sector.
Brickability revealed that it expects to meet market expectations for the full year thanks to a strong order book throughout the second half of the year
Gross profit increased by 40.8% to £54.9m in the period, while adjusted EBITDA increased by 45.7% to £25.5m.
In view of the strong results, the company announced an interim dividend of 1.01p per share, compared to 0.96p for the first half, which will be payable on February 23, 2023.
Shares of Brickability rose 0.2% to 70.67p in early trading on Monday.
Looking ahead, the company says it remains positive, but warned that the impact of a challenging macroeconomic and geopolitical backdrop is “unclear” through 2023.
He noted that the limited availability of certain products presented itself as a challenge in 2022, as well as the volatility of the timber market.
John Richards, Chairman of Brickability, said: “The first half of the year saw the group benefit from the earlier strategic decision to enter new market segments in the construction and homebuilding sectors, diversifying and thereby expanding both the group’s product portfolio and end markets.
“This, combined with increased import and distribution capacity, has significantly increased the group’s customer base, resulting in sales and profit growth across all four divisions.
“While the market continues to be 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 in 2023 is unclear.
“However, having built a robust and increasingly diverse business, we remain confident in the group’s ability to continue to execute on its strategy and meet market expectations for the full year.”
Brickability is a leading building materials distributor, serving customers across the UK and Europe for over 37 years.
The group supplies more than 550 million bricks per year and has more than 55 sites across the country with more than 600 employees.