Economy

Brickability poised to exceed profit expectations due to strong demand for the housebuilding industry

Brickability revenue tops £352m on strong demand, but materials supplier braces for slowdown in homebuilding

  • Profit growth in all divisions, despite the macroeconomic backdrop
  • Gross profit increased 40.8% to £54.9m as Adjusted EBITDA increased 45.7% to £25.5m

Brickability expects to meet earnings expectations for the year, thanks to a strong order book in the second half.

The Wales-based building materials supplier told investors on Monday revenue rose 57.8% to £352.7m and expects to achieve adjusted EBITDA of £44.5m for 2022.

Brickability has enjoyed sales and profit growth across all of its divisions over the past six months on the back of strong demand in the construction and homebuilding sector with short supplies.

Brickability has revealed that it expects to meet market expectations for the full year thanks to a strong order book in the second half.

Gross profit increased 40.8% to £54.9m over the period, while Adjusted EBITDA increased 45.7% to £25.5m.

In light of the good results, the company has announced an interim dividend of 1.01 pence per share, up from 0.96 pence in the first half of the year, to be paid on February 23, 2023.

brick actions it rose 0.2 percent to 70.67 pence in early trading on Monday.

Looking ahead, the company says it remains positive, but cautioned that the impact of a challenging macroeconomic and geopolitical backdrop is “unclear” until 2023.

He noted that the limited availability of certain products presented a challenge during 2022 along with the volatility in the timber market.

John Richards, Chairman of Brickability, commented: “The first half of the year has seen the group benefit from earlier strategic decision to enter new market segments within the construction and homebuilding industries, diversifying and expanding both the group’s product portfolio as end markets”.

“This, combined with increased import and distribution capacity, has significantly increased the group’s customer base, which in turn has led to sales and profit growth across all four divisions.

“While the market continues to be affected by macroeconomic and geopolitical pressures, our industry fundamentals remain strong, although the impact of the current UK economic environment on our business through 2023 is unclear.

“However, having built a strong and increasingly diverse business, we remain confident in the group’s ability to continue to deliver on its strategy and meet market expectations for the full year.”

Brickability is a leading distributor of building materials serving customers across the UK and Europe for over 37 years.

The group supplies more than 550 million bricks a year and has more than 55 locations across the country with more than 600 employees.

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Jacky

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