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Brickability diversification strategy holds up in latest results

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Brickability Group has published its financial results for the twelve-month period ended 31 March 2023 – reporting a strong performance across all divisions.  

Brickability Group
Credit: Brickability Group .

Financial highlights 

  • Revenue increased 30.9% to £681.1 million (FY2022: £520.2 million)  
  • Gross profit increased 30% to £112.9 million (FY2022: £86.8 million)  
  • Gross profit margin of 16.6%* (FY2022: 16.7%) 
  • Adjusted EBITDA increased 30.4% to £51.5 million (FY2022: £39.5 million) 
  • Adjusted profit before tax (PBT) increased 28.5% to £44.6 million (FY2022: £34.7 million)  
  • Statutory PBT increased 87.5% to £34.5 million (FY2022: £18.4 million)  
  • Statutory earnings per share (EPS) increased 110.5% to 9.26 pence (FY2022: 4.40 pence)  
  • Adjusted EPS increased 18.6% to 11.93 pence (FY2022: 10.06 pence)  
  • Net debt (at 31 March): £8 million (FY2022: net cash £0.4 million)  

* slight reduction anticipated due to the full-year inclusion of Taylor Maxwell. 

The Group proposed a final dividend of 2.15 pence per share, giving a total dividend for the year of 3.16 pence, an increase of 5.3% (FY2022: 3 pence). 

Operational summary 

An expansion of the Distribution division, with new branches within the U Plastics business and a warehouse for UPOWA. 

Acquisitions of Modular Clay Products (May 2022), ET Clay and Heritage Clay Tile (September 2022) are all fully integrated and contributing to the Group’s results. 

Despite a challenging sector environment, a good performance overall.  

Post period and outlook 

The Group believes the underlying long-term demand for UK housing remains “robust”, as does demand for materials for the construction sector generally.  

And, while mindful of broader macroeconomic uncertainties, the Board believes its diversified business strategy puts it in a good position for the long term. 

Also, joint CEO of Michelmersh Brick Holdings, Frank Hanna, joined the Group as CEO Designate. Alan Simpson will remain with the business. 

The Group also acquired Precision Façade Systems in June for £0.6 million.  

“It has been another strong twelve months for the Group,” said John Richards, chairman of Brickability. “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. Considering the headwinds faced in the wider market environment, the Board is 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.” 

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