Quarter four was a mixed bag for Brett Martin Plumbing & Drainage with October and December better than forecast, but November, typically a very busy month for us, being unexpectedly quiet. The picture from our independent merchant customers was similarly mixed with an even split of customers reporting slightly more upbeat trading and others reporting a relatively flat or slight decrease in trading.

Merchants and products focused on the RMI market saw more positive trading compared to those focused on the new build residential market. It is unclear why RMI was slightly stronger than the Q3 trend, but with consumer sentiment remaining low we do not see this as a medium-term trend.

Mortgage rates saw a small uptick in October and November, and we believe this contributed to the gloomy trading conditions in the new build residential market, although we are seeing some green shoots of recovery in the residential new build market in early 2025.  The recent announcement of a slight pick-up in inflation may hinder the much-needed interest rate cuts. We believe this alongside the slow start by the new Labour government and the price increases necessitated by the budget for employers NIC and minimum wage, will continue to be a drag on consumer and industry confidence into Q2 2025 at least.

The data for planning applications, house starts and completions remains challenging but conflicts with reporting from selected house builders, suggesting that regional differences remain. This is an indication of a market which remains fragile and in-need of some consistent, nationwide positivity to drive confidence in housing. Until consumer confidence returns, it is unlikely that any amount of Government targets will provide the kick start required.

As a privately owned business, Brett Martin continues to invest in the future and when the inevitable improvement in market arrives, we will ensure our customers are ready to take full advantage of the opportunity. We are continuing to expand our sales team, capacity and introduce new products. For example, we have recently released the Adopt a range of Water Authority approved sewer pipe and fittings to target larger new build residential applications.