Building materials supplier, Brickability Group, has strengthened its market position with recent acquisitions in the cladding and fire remediation sectors, while delivering a solid year of financial growth.
Brickability Group reported a strong financial performance for the year ending 31 March 2025, despite ongoing challenges, including a “slower than previously anticipated recovery” in private and public housebuilding, as well as a “subdued” repair, maintenance and improvement market.
The group’s revenue rose by 7.2 per cent to £637.1 million (FY2024: £594.1 million), driven by growth across its divisions, including renewable energy solutions and cladding services.
In particular, its contracting division, benefiting from the UK’s regulatory focus on building safety, saw a significant surge in revenue – up 69.4 per cent – to £98.6 million (FY2024: £58.2 million).
In addition, its gross profit increased by 15 per cent to £121.7 million (FY2024: £105.8 million) with a gross profit margin of 19.1 per cent (FY2024: 17.8 per cent).
These boosts were said to be largely due to the full-year contributions from acquisitions in cladding and fire remediation, from Topek and TSL, with adjusted EBITDA achieving double digits – increasing by 11.6 per cent to £50.1 million (FY2024: £44.9 million).
Meanwhile, the bricks and building materials division showed resilience, with revenue at £426.1 million (FY2024: £427.7 million), despite a slight dip in brick prices.
Frank Hanna, chief executive officer, marking his first full year at the helm, confirmed the company would continue to assess potential acquisitions that could enhance earnings and drive further growth.
“The group delivered a solid performance in the period, with recent acquisitions contributing to the group’s diversification and resilience, enabling profit upgrades during the second half,” he said.
Since its initial public offering (IPO) on the alternative investment market (AIM), where it first offered shares to the public to raise capital, the Group has completed 14 acquisitions, with strategic acquisitions continuing to play a central role in the group’s growth strategy.
Adjusted pre-tax profit increased by 7.1 per cent to £37.8 million (FY2024: £35.3 million) with adjusted earnings per share decreasing slightly by 0.8 per cent to 8.59 pence (FY2024: 8.66 pence).
Strong cash generation continued to increase, rising to £41.5 million (FY2024: £35.4 million) with net debt of £56.6 million (FY2024: £56.5 million).
The board proposed a final dividend of 2.39 pence per share, bringing the total annual dividend to 3.51 pence per share.
While economic uncertainty and delays in housing starts persist, Brickability remains confident in the UK housing market’s long-term prospects with a strong “multi-year order book and pipeline”.
“Recent announcements from housebuilders confirm that substantial landbanks are available and ready for development, both in greenfield sites for new housing developments and existing brownfield sites in urban locations and, fundamentally, the need for new homes in the UK remains strong,” added chairman, John Richards.
“The group is well-positioned to benefit from an increase in demand given its significant operational gearing.”
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