Brickability sales surge despite slow start to new home boom

Brickability expects full-year earnings to be 'modestly ahead' of forecasts after sales strengthened in recent months following a tough 2024.

The construction materials distributor revealed like-for-like turnover rose by about 12.3 per cent in the four months ending January, with growth across all divisions.

The Berkshire-based firm said its distribution segment continued to profit from 'high demand' for solar PV products in its green technology products business Upowa.

Brickability's contracting arm benefited from bumper orders for its specialist cladding and fire remediation products amid stricter rules on building safety.

The company's bricks and building materials, and importing divisions also grew sales despite a more competitive environment against a backdrop of subdued market conditions.

Given current trading momentum and short-term visibility on the timing of orders and projects, Brickability now anticipates its adjusted earnings before nasties will be 'modestly ahead of market expectations' in the year ending March 2025.

Frank Hanna, chief executive of Brickability, said the firm's results were a 'testament to our specialist, multi-channel group structure and the hard work of the group's teams across the four divisions that we are able to deliver growth through a tough cycle'.

He added: 'At the same time, we are investing in our IT systems and the standardisation of processes to improve operating efficiencies and data analytics to better serve our customers.'

Britain's housing market has struggled over the past couple of years as interest rate hikes, cost inflation and the end of the Help to Buy scheme have hit demand for new homes.

Many homebuilders hope the UK Government's pledge to construct 1.5 million new properties over the course of the current parliament will spur a recovery.

Labour partly intends to achieve this by designating certain areas as 'grey belt' land and providing councils with more cash to employ planning officers.

Brickability said it is 'well positioned to benefit quickly' if the Government ensures housing volumes begin accelerating.

Brickability Group shares were 1.9 per cent up at 63p on mid-Wednesday afternoon, although they have fallen by around 17 per cent in the past year.

Analysts at Peel Hunt said: 'The shares have struggled in the last year as the recovery in the new housing market has yet to start.

'Given the backing from the Government, it will eventually come through and that should see profits recover materially.'

Founded in 1985, the company has expanded notably in recent years by diversifying through multiple acquisitions and entering new sectors like roofing.

Its previous chief executive, Alan Simpson, spearheaded much of this growth, as well as Brickability's listing on the AIM market and the switching of its headquarters from Bridgend in Wales to Bracknell.

Hanna replaced Simpson in 2023 following a 14-year spell running Michelmersh Brick Holdings, a clay product specialist that manufactures over 125 million clay bricks and pavers annually.