BRCK Group (BRCK) H2 2024 earnings summary

Executive summary

• Delivered resilient performance despite sector headwinds, with revenue of £594.1m and adjusted EBITDA of £44.9m, reflecting strong positioning and diversification.

• Strategic acquisitions of Topek and TSL expanded specialist cladding and remediation capabilities, accelerating diversification into higher-margin segments.

• CEO transition from Alan Simpson to Frank Hanna completed; new leadership focused on leveraging strong foundations and further growth.

• ESG strategy advanced, with continued investment in health & safety and community initiatives.

• Trading in the new financial year is in line with management expectations.

Financial highlights

• Revenue declined 12.8% year-over-year to £594.1m; adjusted EBITDA also down 12.8% to £44.9m, with margin stable at 7.6%.

• Adjusted profit before tax fell 20.9% to £35.3m; adjusted EPS decreased 27.4% to 8.66p.

• Net debt increased to £56.5m, representing 1.25x adjusted EBITDA; annual dividend per share up 6.0% to 3.35p.

• Gross profit margin improved by 120bps to 17.8% year-over-year.

• Statutory profit before tax dropped 38.0% to £21.4m; reported EPS down 45.4% to 5.06p.

Outlook and guidance

• Trading in the current year remains in line with Board expectations, despite a soft new build housing market.

• Anticipated interest rate cuts and government focus on housing expected to support sector recovery.

• Diversification momentum provides multiple growth opportunities; well positioned to benefit from market upturn.