Breedon deliver resilient first-half performance
Construction materials group announces results for the six months ended 30 June 2024
BREEDON, the FTSE 250 vertically-integrated construction materials group in Great Britain, Ireland, and the US, have announced their results for the six months ended 30 June 2024.
First half (H1) revenues increased by 3% to £764.6 million (H1 2023: £742.7 million) as the group’s third platform launch in the US and resilient pricing offset weather impact and market headwinds.
Underlying EBIT increased 2% to £71.6 million (H1 2023: £70.5 million), benefiting from a promising maiden contribution from Breedon’s first acquisition in the US – BMC – who are trading ahead of prior year and plan, with healthy markets and a robust order book.
Strong earnings growth was delivered in Ireland and improved the margin in Cement, which helped to mitigate the drop from reduced volumes in GB, such that underlying EBIT margin was broadly maintained at 9.4% (H1 2023: 9.5%).
Following the acquisition of BMC, net debt increased to £472.3 million (2023: £169.9 million).
Management expectations for the full year remain unchanged with underlying EBIT slightly more weighted towards the second half than is typical, whilst growth is expected in all Breedon’s markets from 2025 as the economic and political landscape stabilizes.
Rob Wood, chief executive officer, commented: ‘For the team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement.
‘We achieved a major strategic objective in March, entering the US and establishing our third platform with the transformative acquisition of BMC, creating the foundation from which we will build out our US business.
‘We expanded our routes to market, delivering two bolt-on transactions in GB, and growing organically through our downstream businesses, pulling through more of our own material.
‘We moved our sustainable growth strategy forward on all fronts in the first half of 2024 and were pleased to see this recognized by CDP with our first ratings placing us at the forefront of our sector for Climate Change and Water Security.
‘During this time the quality and flexibility of the Breedon team, of whom I am incredibly proud, have kept us close to our customers, accelerated our drive for efficiencies, and strengthened our operations.
‘As the economic and political clouds clear in GB, our markets will return to growth in time and we will be well placed to grow and succeed.’
