Brickability Group plc, the leading construction materials distributor, is pleased to announce a trading update for the year ended 31 March 2020.
In a year which saw significant political and economic uncertainty, the Group delivered a solid trading performance, and expects to deliver revenues for the period of approximately £188 million and adjusted EBITDA of £19.4 million1. Group revenues were driven by both organic and inorganic growth with the Group having completed four acquisitions in the first trading half and two more acquisitions in 2020.
As at 31 March 2020, the Group had a cash position of £27 million, with overall net cash of approximately £2 million.
Outlook
As announced on 1 May, the Group has continued its orderly and safe re-opening of its sites as the industry has seen additional house builders returning to work. Brickability management are further encouraged by the more recent government announcements that construction work can continue to return to work, if safe. The Group continues to monitor the situation and continues to flex costs in line with demand.
The Group fundamentally believes that the underlying demand for UK housing remains robust and that increasing housing supply in the UK remains a key objective for Government. The acquisition pipeline remains strong with the Group assessing a number of potential opportunities in line with the Group’s stated strategy to provide geographic and product expansion whilst focusing on improving profitability.
It is still too early to predict with any certainty how quickly our markets will recover, and we therefore remain unable to provide market guidance at this time. However, we have a fundamentally robust business with traditionally strong cashflow and a strong balance sheet which gives the Board confidence in the Group’s ability to prosper in the long term.
The Group will notify the date of its full year results for the twelve months ended 31 March 2020 in due course.
John Richards, Chairman, said:
“Brickability reached a major milestone last year with its successful IPO and I am pleased that, despite the wider economic and political challenges that have created uncertainty, we continue to deliver the strategy we set out when going public. It shows that in Brickability we have a strong business and it gives us confidence for the future.
“I would further like to thank our colleagues who have worked incredibly hard throughout the year and have given their support to the business throughout the current public health crisis. They are very much the backbone of Brickability and are doing sterling work in returning the business to a resumption of operations.”
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