Fast-growing firm says it is on course to meet market expectations after purchase of rival Taylor Maxwell

Brickability has increased its pre-tax profit by 71.9%, according to an audited update.

The materials distributor, in its interim results for the six months to 30 September, reported pre-tax profit of £15.3m, up from the £8.9m restated for the same period last year.

Brickability Group LSEG(1)

Brickability is growing quickly through acquisitions

The firm said demand remained strong for its products, which include bricks, timber, flooring and other materials.

It said: “We continue to operate within a supportive government regulatory environment and continue to experience strong demand across the undersupplied construction and housebuilding sector.”

Last year’s pre-tax profit figure was restated at £8.9m instead of £11.9m due to a treatment of a payment relating to the firm’s acquisition last year of £254m-turnover Taylor Maxwell.

The firm also increased its revenue 57.8% to £352.7m over the same period, boosted by the purchase of its rival.

Its ‘like-for-like’ revenue, which is based on sales and does not take into account acquisitions, also increased 9.3%.

It said the increase in revenue “largely reflects the general increase in prices across the industry” However it said that volatility in the timber market had seen a fall in prices, meaning its largest division - bricks and building materials- increased its like-for-like revenue by just 4.3% to £270m compared to 51.4% in its imported division.

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The firm’s gross profit margin percentage decreased from 17.4% to 15.6% due to Taylor Maxwell operating on lower margins than the original Brickability Group.

The firm says it is on course to meet its target of reaching earnings before interest, taxes, depreciation (EBITDA) of £44.5m for the full year, after posting £25.5m for the first six months.

Brickability made two further acquisitions in the year, buying Modular Clay Products for £4.75m in May and ET Clay Products for £11.6m in September.