Brickability Q4 trading impacted by 'lower levels of demand'

26th Apr 2024 08:08

(Sharecast News) - Construction materials distributor Brickability said on Friday that its Q4 trading performance continued to reflect "lower levels of demand" for bricks and associated building products seen throughout the first nine months of the year.

Brickability said annual group revenues were expected to be approximately £594.0m, a decrease of approximately 13% over the prior year, while full-year adjusted underlying earnings were expected to be at least £44.8m, in line with previous guidance. Margins remained consistent with the group's prior year performance.

The AIM-listed group said it remains in "a strong financial position", with leverage expected to be approximately 1.25x, following the acquisitions of Group Topek in October 2023 and TSL Assets in January, both of which were said to be "performing as expected" and were experiencing "strong forward orders" as part of the enlarged group.

"Despite activity levels in the sector remaining subdued, the Board believes that with leading positions across a diverse portfolio offering, the group enters the new financial year well positioned to benefit materially from a recovery in its end markets," said Brickability.

As of 1135 BST, Brickabiliy shares were down 2.71% at 66.16p.

Reporting by Iain Gilbert at Sharecast.com