Breedon post strong set of results for 2014
Company made significant progress last year with results strongly ahead of 2013
BREEDON Aggregates have reported another year of significant progress for the 12 months ended 31 December 2014, with results strongly ahead of 2013. These were driven by steadily improving market conditions, healthy contributions from acquisitions, the benefits of continuing capital investment and solid organic growth in the underlying business.
Sales revenue increased by 20.1% to £269.7 million (2013: £224.5 million), underlying EBITDA by 36.2% to £38.5 million (2013: £28.3 million) and profit before tax by 94.0% to £21.4 million (2013: £11.0 million). The Group’s underlying EBITDA margin improved from 12.6% to 14.3%, with both England and Scotland ahead of the previous year.
Acquisition and capital project spend in 2014 totalled nearly £50 million, comprising £33.4 million on acquisitions, £3.5 million on an investment and £11.9 million on other capital projects.
For the 12 months as a whole, Group aggregates volumes were up 25.2% at 7.7 million tonnes (2013: 6.1 million tonnes), asphalt volumes were up 12.3% at 1.5 million tonnes (2013: 1.4 million tonnes) and ready-mixed concrete volumes were up 22.9% at 0.8 million cubic metres (2013: 0.6 million cubic metres).
Executive chairman Peter Tom (pictured) commented: ‘We are pleased to report another year of significant progress, with results strongly ahead of 2013. These were driven by steadily improving market conditions, healthy contributions from acquisitions, the benefits of continuing capital investment and solid organic growth in the underlying business.
‘As we enter our fifth year since the creation of Breedon Aggregates, the Group looks very different to the business we acquired in 2010. Sales revenue has nearly doubled, EBITDA has risen almost threefold, the balance sheet is strong and we have a stable, experienced management team in place.
‘The economic outlook is the most favourable for our industry since the end of the recession. Construction output and demand for our products are expected to increase over the next three years, and infrastructure, in particular, is expected to grow strongly in 2015–18 on the back of recently announced public spending plans.
‘We continue to see many opportunities to grow and improve our business and are confident that we will make further progress in 2015.’
