Profits up at Breedon Aggregates

UK’s sixth largest aggregates business trebles pre-tax profit in 2012 despite tough trading conditions

BREEDON Aggregates have reported a marked increase in profits for the year ended 31 December 2012. Underlying pre-tax profit more than trebled to £5.6 million, while underlying group operating profit rose 55.4% to £8.8 million, despite the significant drop in demand from the UK construction industry.

Sales revenues during 2012 increased by 2.7% to £173.5 million, while underlying EBITDA was up 18.3% to £20.2 million and the company’s EBITDA margin improved by 1.5 points to 11.6%. The company also reduced its net debt from £96 million to just over £74 million during the 12-month period.

Commenting on the results, Breedon Aggregates’ executive chairman Peter Tom (pictured) said: ‘I am pleased to report that, despite the worst trading conditions I can remember in my 50 years in this industry, Breedon Aggregates continued to grow and prosper in 2012. Group revenues increased and our profitability improved.

‘Looking ahead, the challenges in 2013 look like being every bit as tough as they were last year. The Construction Products Association is forecasting that construction output will fall by more than 2%, with no meaningful recovery until 2014.

‘Against this backdrop, it would be easy to let the gloom get the better of us, but we have a strong and finely-tuned business which is well equipped to cope with difficult economic conditions and we remain enthusiastically committed to growing the Group in the years ahead.

‘When we created Breedon Aggregates in 2010, we did so in the knowledge that we could expect little or no help from the construction market. Our models were predicated on delivering real value if necessary through self-help alone. It is this approach and mindset which give us the confidence to anticipate another year of progress in 2013.’