Brickability reports strong full-year growth

Construction materials distributor Brickability Group reported significant growth in its full-year results on Monday, with notable increases in revenue, gross profit, and profitability metrics.

The AIM-traded company said it achieved 30.9% growth in revenue, reaching £681.1m.

Additionally, it saw like-for-like revenue growth of 4.0% compared to 2022, excluding timber, and a substantial 31.9% increase compared to 2021.

Its gross profit increased 30% to £112.9m, with the board explaining that despite a slight reduction in gross profit margin to 16.6% from 16.7%, the outcome was expected due to the inclusion of Taylor Maxwell for the full year.

Adjusted EBITDA rose 30.4% to £51.5m, compared to £39.5m in 2022, whole adjusted profit before tax increased 28.5% to £44.6m..

Statutory profit before tax saw a significant increase of 87.5% to £34.5m, from £18.4m in the prior year.

Brickability said its statutory earnings per share expanded by 110.5% to 9.26p compared to 4.40p in 2022, while adjusted earnings per share increased 18.6% to 11.93p.

As at year-end on 31 March, Brickability’s net debt totalled £8m, swinging from a net cash position of £0.4m a year earlier.

Brickability proposed a final dividend of 2.15p per share, which would result in a total dividend of 3.16p for the year.

That, the board said, would represent a 5.3% increase compared to the prior year's dividend of 3p.

“It has been another strong 12 months for the group,” said chairman John Richards.

“Our continued focus on the strategic expansion and diversification of the business has seen the group achieve impressive growth in the year.

“Over the past year, the housebuilding market has been faced with new challenges arising from the macroeconomic and geopolitical environment.”

Richards said that, considering the headwinds faced in the wider market environment, the board was “very pleased” with the group's performance.

“The results we achieved this year are thanks to the dedication and determination of our people, who look to consistently deliver excellent service while seizing opportunities as they arise.”

At 1357 BST, shares in Brickability Group were up.1.78% at 56.19p.

Reporting by Josh White for Sharecast.com.