11th Sep 2024 19:24
Brickability Group PLC - Bridgend, Wales-based construction materials distributor - Issues trading statement of Wednesday's annual general meeting. Says trading in the current financial year ending March 31 2025 has been "resilient", with the group performing in line with the board's expectations throughout the first five months of the year. Market conditions remain challenging as anticipated, with demand for both UK and imported bricks down year on year, driven through a sustained decline in UK housing builds. As a result, trading in the Bricks and Building Materials and Importing divisions reflect the lower brick related volumes. The Distribution division continues to deliver a resilient performance, whilst the Contracting division is performing strongly. Decides to not issue a further loan to its German tile manufacturing joint venture, which will allow the group to focus on other investment opportunities and capital allocation priorities which are expected to generate better returns for shareholders. As a result, and absent a further injection of third-party funding, the factory may cease operations in the coming weeks. An outstanding balance of around EUR6 million to the group is due but the recoverability of which is currently unknown. Any impairment would be expected to be recognised as a non-cash one-off exceptional item in the interim results. Expectations for adjusted earnings before interest, taxes, depreciation and amortisation for the current financial year remain unchanged. Read More
