Profit at the construction industry supplier Brickability fell over a third last year amid challenges in the UK housebuilding market.
Annual pre-tax profit dipped 38 per cent to £21.4m, while on an adjusted basis, profit fell 20.9 per cent to £35.3m.
Shares are up over 17 per cent this year to date, but fell over five per cent in early morning trading.
John Richards, chairman of Brickability, said the London-listed firm had continued to “demonstrate resilience and deliver a robust financial performance,” despite well-documented challenges in the housebuilding and RMI markets.
“It is particularly pleasing to see the Group’s strategic focus on diversification of products and end markets yielding benefits. This, coupled with our capital-efficient business model and continued focus on disciplined capital allocation and cost control, has been a key driver of our resilience.”
Looking ahead, Brickability said it remained “cautious,” with “further softness” expected in the housing market sector over the short term despite some encouraging signs . Trading in the current financial year to date is in line with management’s expectations.
The housing market has seen a big jump in sales in recent months as buyers anticipate a game-changing interest rate cut. Last month, agreed house sales rose 15 per cent year-on-year, according to Rightmove.
Investors will enjoy a full-year dividend of 2.28p per share, up six per cent on last year.
Earlier this year, Frank Hanna replaced Alan Simpson as chief executive. Simpson had been responsible for overseeing the firm’s IPO in 2019 and a number of acquisitions since.