Brickability FY profits slump in 'challenging year'

16th Jul 2024 07:16

(Sharecast News) - Building materials group Brickability said on Tuesday that both revenue and profits had declined in the six months ended 31 March as it continued to navigate what it called "a challenging year".

Brickability said H1 revenues had fallen 12.8% to £594.1m, while gross profits fell 6.3% to £105.8m, adjusted underlying earnings slumped 12.8% to £44.9m, and pre-tax profits tumbled 38% to £21.4m. Earnings per share also crashed, down 45.4% to 5.06p.

In addition to the drop in both profits and revenues, the AIM-listed group also said net debt had widened from £8.0m at the end of FY23 to £56.5m following its acquisiton of Group Topek holdings and Topek Southern.

Chairman John Richards said: "Over the past year there have been a number of well-documented challenges impacting the housebuilding and RMI markets. Against this macro backdrop, the Group has continued to demonstrate resilience and deliver a robust financial performance.

"It is particularly pleasing to see the group's strategic focus on diversification of products and end markets yielding benefits. This, coupled with our capital-efficient business model and continued focus on disciplined capital allocation and cost control, has been a key driver of our resilience."

As of 1130 BST, Brickability shares were down 5.58% at 70.25p.

Reporting by Iain Gilbert at Sharecast.com