Brickability upbeat on first-half growth outlook
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Brickability can ‘actively deal with the headwinds’ ahead as housing market jitters grow and interest rates continue to rise
- Brickability said it expects revenue growth of about 58% in the first half
- Rival Ibstock said it expects to perform above expectations for the full year
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Brickability expects revenue growth of approximately 58 percent in the first half and an increase in underlying profit of 39 percent.
The building materials supplier told investors on Wednesday that it had posted revenue and profit growth in all of its four branches over the past six months, despite continued high energy costs and inflation.
Brickability Stocks rose today, rising 1.82 percent or 1.34p to 74.84p in late morning trading, after falling more than 28 percent in the past year.
Uplifting: Brickability saw sales and profit growth in all four divisions
Group sales for the six months to 30 September are expected to be approximately £353 million. Adjusted for acquisitions, organic growth was approximately 10 percent.
Adjusted EBITDA of at least £25m is expected for the first half, up from £17.6m on the same point a year ago.
Looking to the second half, the group said it was approaching the period with “cautious optimism.”
It added that it continued to “actively manage the headwinds” of macroeconomic conditions, namely the impact of rising interest rates on the UK housing market.
The board of directors remains optimistic about the group’s ability to meet market expectations for the full year ending March 31, for which analysts currently expect around £44.5 million.
The company said: ‘Our order books remain in line with management’s expectations and we believe the group’s diverse multi-business product offering will continue to enable the group to meet the challenges ahead.’
On Tuesday, rival Ibstock said it expects to perform above its previous full-year expectations as strong demand and effective cost management delivered positive quarterly results.
For the three months ended Sept. 30, Ibstock said trading “exceeded our expectations” thanks to “robust demand patterns.”
The Leicester-based brick and concrete products manufacturer said sales volumes in its clay division were “marginally higher” than the same period a year ago, while sales volumes of concrete were “largely comparable”.
Ibstock Shares fell 0.5 percent or 0.80p to 158.30p in late morning trading.