Breedon Group trading update
Company delivers solid performance with both volumes and revenues ahead of 2016
BREEDON delivered another solid performance in the 10 months to 31 October 2017, with both volumes and revenues ahead of the prior year, including a full 10-month contribution from the former Hope Construction Materials business, which was part of the Group for only three months in the corresponding period of 2016.
According to the company’s latest trading update, Group sales volumes of aggregates increased by 47%, asphalt by 2% and concrete by 99%, whilst Breedon’s cement business is performing in line with expectations. Total Group revenue for the 10-month period to 31 October increased by 56% to approximately £561 million.
Assuming normal weather conditions for the remainder of the financial year, the Group’s underlying EBIT for the full year is expected to be in line with current market expectations in the range £74 million to £83 million.
With forecasters expecting construction output to grow modestly in 2017 and remain broadly flat next year before returning to growth in 2019, Breedon say new infrastructure and housing work – which together account for approximately two-thirds of their end-use markets – are expected to show healthy growth over the next two years.
The company is also continuing to invest in its business at record levels, which is said to be yielding appreciable benefits in terms of enhanced performance and improved productivity. As a result of these organic improvements, Breedon say they are confident of making further progress in 2018.
Preliminary results for the year ending 31 December 2017 will be announced on 7 March 2018.
