Brickability, a brick merchant, has revealed it saw growth as it headed towards a multimillion pound management buyout
According to brick merchant Brickability, the firm saw a rise in both pre-tax profit and turnover in the period that led up to a multimillion pound management buyout.
Brickability, which has its headquarters in Bridgend, currently operates from 12 site across the UK. The firm supplies bricks, blocks and cladding, as well as other building products used in the housebuilding and construction sectors. Bellway, Royalton, Milgate Homes and Carillion are some of the housebuilding and construction firms that Brickability supplies.
Pre-tax profits and turnover rose
The firm’s recently filed accounts revealed pre-tax profits rose from £4.2m to £4.6m in the year to 31 March 2016. Turnover increased from £69.5m to £72.6m. Brickability also reported it supplied more than 150 million bricks during 2015 to UK housebuilders.
The firm was bought out in a multimillion pound deal in October 2015. This was supported by Promethean Investments and provided capital to support plans for growth.
In their statement, the directors said: “The construction industry has now come out of recession and building materials, in particularly bricks, are now in plentiful supply and able to meet the demands of the industry.
“There are many clear and ﬁrm indications in the industry of sustained demand for building materials and trading in the early months of the current ﬁnancial year clearly supports this view.
“In the current economic climate, with high workload and improved pricing, the business strategy and model have provided a ﬁrm foundation for growth within the existing regions of operation and exploitation of the many opportunities available in the industry.”
Since the Brexit vote the materials sector has done well, with costs rising due to the weakness of the pound. In fact, according to the latest Markit/CIPS PMI December saw the biggest increase in costs in over five years. For builders, this is bad news, but for builders’ merchants this is undoubtedly positive.