Breedon Aggregates post strong full-year results
Revenue, pre-tax profits and volumes all up significantly and a positive outlook for 2014
BREEDON Aggregates have posted a strong set of results for the full year ended 31 December 2013 as the company’s markets showed encouraging signs of life and the long-awaited recovery began to take hold. Underlying pre-tax profit for the year was up 121.4% to £12.4 million (2012: £5.6 million) on revenue that was up 29.5% to £224.5 million (2012: £173.5 million).
Underlying EBITDA was up 40.1% to £28.3 million (2012: £20.2 million), with the EBITDA margin up a full percentage point to 12.6%, while underlying operating profit rose 65.4% to £14.6 million (2012: £8.8 million). Net debt was cut from more than £74 million to £54million and capital expenditure substantially increased to £13.3 million (2012: £8.5 million).
Sales volumes in all products were significantly ahead of 2012 with aggregates up 43% to 6.1 million tonnes, asphalt up 15% to 1.4 million tonnes and ready-mixed concrete up 27% to 620,000 cubic metres, with strong performances registered in both England and Scotland.
Peter Tom (pictured), executive chairman, commented: ‘It is pleasing after several very difficult years to report that our markets at last showed encouraging signs of life in 2013 as the long-awaited economic recovery began to take hold.
‘This helped us to produce a very encouraging financial performance and to make significant progress in developing the business and positioning ourselves to deliver further value for our shareholders in the years ahead.
‘We are proud to be the only publicly quoted British aggregates business in the UK. We have established ourselves in a relatively short period of time as a successful player in a highly competitive market, achieving scale and profitability with a strong balance sheet, whilst delivering sound value for our shareholders.’
Looking ahead, Mr Tom said the year had begun well and the outlook was more encouraging than for some time. ‘We plan to take full advantage of the opportunities ahead and remain confident of making further progress in 2014,’ he commented.
Meanwhile, Breedon’s former group finance director Ian Peters has been succeeded by Rob Wood, who took up his new role on 3 March 2014. Mr Wood was previously group financial director of Drax Group plc, and before that chief financial officer - Australia & Asia Pacific with Hanson plc.
