Brickability upbeat on first-half growth outlook


Brickability can ‘actively manage the headwinds’ ahead as housebuilding market jitters grow with interest rates continuing to climb

  • Brickability said it expects to report first-half growth of around 58% in revenue 
  • Rival Ibstock said it expects to perform above its previous full-year expectations 

Brickability expects to report first-half revenue growth of around 58 per cent and a 39 per cent uptick in underlying earnings.

The building materials supplier told investors on Wednesday it had enjoyed sales and profit growth across each of its four arms in the last six months, notwithstanding continued high energy costs and inflation.

Brickability shares rose today and were up 1.82 per cent or 1.34p to 74.84p in late morning trading, having fallen over 28 per cent in the last year.  

Upbeat: Brickability enjoyed sales and earnings growth across all its four divisions 

Group revenue for the six months to 30 September is expected to come in at around £353million. When adjusted for acquisitions, like-for-like growth was around 10 per cent.

Adjusted EBITDA of at least £25million is expected for the first-half, up from £17.6million at the same point a year ago. 

Looking to the second half, the group said it was approaching the period with ‘cautious optimism’. 

It added it was continuing to ‘actively manage the headwinds’ of macroeconomic conditions, namely the impact on the UK housebuilding market of rising interest rates.

The board remains upbeat about the group’s ability to deliver on market expectations for the full year ending 31 March, for which analysts currently expect about £44.5million.

The company said: ‘Our order books remain in line with management expectations, and we believe that the group’s diverse multi-business product offering will continue to enable the group to navigate the challenges ahead.’

On Tuesday, rival Ibstock said it expects to perform above its previous expectations for the full year, as strong demand and effective cost management delivered positive quarterly trading figures.

For the three months the ending 30 September, Ibstock said trading was ‘ahead of our expectations’ thanks to ‘robust demand patterns.’

The Leicester-based manufacturer of clay bricks and concrete products said that sales volumes in its clay division were ‘marginally above’ the same period a year ago while volumes of concrete sales were ‘broadly similar.’

Ibstock shares were down 0.5 per cent or 0.80p to 158.30p in late morning trading. 

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