Brickability H1 pre-tax profits rise, trades in line with FY guidance

Building material company Brickability said on Monday that interim pre-tax profits and revenues had risen, leading the group to back full-year guidance.

Brickability said interim revenues were up 57.8% at £352.7m, while first-half pre-tax profits were 71.9% higher at £15.3m and adjusted underlying earnings were 45.7% stronger at £25.5m.

The London-listed group, which declared a H1 dividend of 1.01p per share, said it had delivered a "strong performance" across all divisions in first half the year despite the current macroeconomic and geopolitical backdrop.

Brickability also said it had witnessed "continued strong order intake" moving into the second half but noted that the board "remains vigilant" of wider macroeconomic challenges but was also confident in its ability to deliver a performance in line with market expectations for the full year.

Chairman John Richards said: "The first half of the year has seen the group benefit from the earlier strategic decision to move into new market segments within the construction and housebuilding industries thereby diversifying and expanding both the Group's product portfolio and end markets. This, combined with the increase in import and distribution capacity, has significantly increased the Group's customer base which has in turn led to sales and profit growth across all four divisions.

"Whilst the market continues to be impacted by macroeconomic and geopolitical pressures, the fundamentals of our industry remain strong, albeit the impact of the current UK economic environment on our business during 2023 is unclear. However, having built a robust and increasingly diverse business, we remain confident in the group's ability to continue to deliver on its strategy and to meet market expectations for the full year."

As of 0930 GMT, Brickability shares were up 0.55% at 70.88p.

Reporting by Iain Gilbert at Sharecast.com