Year of solid progress for Breedon
Company reports strong organic earnings growth supplemented by contributions from acquisitions in 2017
BREEDON Group have reported a 52% increase in pre-tax profit to £71.2 million (2016: £46.8 million) on revenue that was up 43% to £652.4 million (£454.7 million) in their audited annual results for the year ended 31 December. Underlying EBIT was up 35% to £80.4 million (£59.6 million) over the same period, whilst net debt was reduced by 31% to £109.8 million (£159.3 million).
Sales of aggregates increased to 16.0 million tonnes in 2017 from 11.4 million tonnes the previous year, whilst ready-mixed concrete sales increased to 3.3 million cubic metres from 1.9 million cubic metres in 2016 and asphalt sales remained flat at 1.9 million tonnes.
Peter Tom CBE, executive chairman of Breedon, commented: ‘2017 was one of the most productive years in our history. We completed the integration of our largest-ever acquisition, concluded two bolt-on purchases and announced an important transaction with Tarmac that, subject to approval by the competition authorities, will see us streamline our ready-mixed concrete network in exchange for a substantial new reserve of minerals and a strategically valuable asphalt plant.
‘This did not, however, distract us from our operational focus and we once again delivered a solid financial performance. Our business is in great shape and we are well positioned to benefit from the medium-term growth in residential and infrastructure development, to which the majority of our material is supplied. We look to 2018 and beyond with confidence and optimism.’
Mr Tom also paid tribute to Simon Vivian, who is retiring from the board and will be stepping down with immediate effect: ‘Simon and I worked closely together on the creation of Breedon and he did distinguished service as the Group’s chief executive from 2010 to 2015. He retires with our thanks for the significant contribution he made to the Group’s early development and we wish him well in all his future endeavours.’
Following Mr Vivian’s departure and recognizing the need to maintain the right mix of skills and experience, Breedon have commenced a formal search process to seek two new independent non-executive directors.
