Breedon deliver 'excellent performance' in 2019
Group reports improved result from all three divisions despite challenging market conditions
BREEDON Group plc say despite challenging market conditions, improved results from all three divisions (GB, Ireland and Cement) resulted in an excellent performance in 2019, with pre-tax profit increasing by 18% to £94.6 million (2018: £79.9 million) on revenue that was up 8% to £929.6 million (£862.7 million) for the year ended 31 December.
Underlying EBIT for the full year was up 13% to £116.6 million (£103.5 million), equivalent to an underlying EBIT margin of 12.5%, whilst net debt was reduced by £20 million to £290.3 million (£310.7 million), equivalent to 1.6 times underlying EBITDA.
Pat Ward, group chief executive, commented: ‘We closed 2019 with a strong result, in line with the market’s expectations, reflecting an excellent performance from our businesses in some challenging market conditions.’
Group aggregates sales volumes for 2019 were up 4% at 20.2 million tonnes, asphalt volumes were up 6% at 3.0 million tonnes, ready-mixed concrete volumes were down 7% at 3.0 million cubic metres and cement volumes were up 3% at 2.0 million tonnes.
With the integration of Lagan now largely completed, Breedon have recently reached agreement to acquire a £178 million portfolio of assets from CEMEX in the UK, whilst their acquisition of Roadway has strengthened their position in North Wales and their Capital Concrete joint venture with Brett has secured critical mass in the London ready-mixed concrete market.
‘Breedon are in excellent shape,’ continued Mr Ward. ‘We have a well-established business extending throughout GB and Ireland, having delivered great results irrespective of market conditions. We have an outstanding team of colleagues and, following the acquisition of the CEMEX asset portfolio, we will have the backing of more than a billion tonnes of valuable mineral reserves and resources, together with two well-invested cement plants.
‘With the UK Government committed to significantly increased investment in infrastructure, we are well placed to benefit from the increased demand for our products that this will create. I am confident that we will make further progress in 2020 and beyond.’